Karmazin Speaks Of Merger Benefits
April 17, 2006Sirius Satellite Radio CEO Mel Karmazin Reiterates Benefits of Sirius-XM Merger
Tuesday April 17, 10:00 am ET
WASHINGTON and NEW YORK, April 17 /PRNewswire-FirstCall/ -- SIRIUS Satellite Radio (Nasdaq: SIRI - News) and XM Satellite Radio (Nasdaq: XMSR - News) announced that SIRIUS Chief Executive Officer, Mel Karmazin, testified today in a hearing before the Senate Committee on Commerce, Science & Transportation regarding the SIRIUS-XM merger. Mr. Karmazin's testimony highlighted the significant benefits for consumers resulting from the proposed merger and the extensive competition that satellite radio faces from a wide range of players in the audio entertainment market. In his testimony, Mr. Karmazin stated:
The Combined Company Will Offer Consumers More Choice At Lower Prices
The key to getting more subscribers will not be to widen the price
gap between free and what satellite radio charges. Instead, it will
be to offer consumers a better value.
The merger will allow us to lower prices. Consumers who want fewer
channels than currently offered will be able to select one or more
packages of channels for less than $12.95 per month.
Importantly, significant portions of the savings achieved through the
merger will be shared with customers immediately and in the long-term
through lower prices and improved service offerings.
Satellite Radio is a Small Part of a Highly Competitive and Ever-
Expanding Market for Audio Entertainment
The audio entertainment market today is vibrant, competitive, and
innovative, and every indication is that it will be even more so in
the future. We believe that the combination of SIRIUS and XM will be
good for consumers as it will intensify this competition, expand the
choices for consumers, and reduce prices.
The market for audio entertainment in the United States is robustly
competitive and rapidly evolving. SIRIUS and XM must compete
directly and intensely with a host of other audio providers for
The Merger Will Help Accelerate Deployment of Advanced Technology
The combined company will be able to offer consumers access to
advanced technology sooner than would otherwise occur. In
particular, the marriage of the companies' two engineering
organizations will ensure better results from each dollar invested in
research and development.
While no radio will become obsolete as a result of this transaction,
we fully expect the merger to stimulate the development of new
interoperable, highly portable, low-cost, and user-friendly devices.
4/17/2007 10:05:00 AM
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