Sirius, XM reach a merger deal

  Today, after months of speculation, XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc. announced they have agreed to merge.

  A merger also would require approval from U.S. antitrust authorities.

  The combination creates a nationwide audio entertainment provider with combined 2006 revenues of approximately $1.5 billion based on analysts' consensus estimates. Today the companies have approximately 14 million combined subscribers and a market value of roughly $13 billion, including approximately $1.6 billion in net debt.

  The transaction is expected to be structured as a merger of equals. After the merger Gary Parsons, the chairman of XM, would be the chairman of the new company, while Mel Karmazin, the CEO of Sirius, would become chief executive.

  On tuesday, the companies will be reveal more details about the merger.