Sirius Radio to merge with XM in $13 billion deal

NEW YORK, Feb 19 (Reuters) - The two main U.S. satellite radio providers, Sirius Satellite Radio (SIRI.O: Quote, Profile, Research, Stock Buzz) and XM Satellite Radio XMSR.O on Monday said they would merge in a stock-for-stock deal, a move that has been long expected in the young industry.

XM and Sirius said they would combine to create a company with an enterprise value of $13 billion, including $1.6 billion in net debt.

Under the terms of the deal, XM stockholders will get 4.6 shares in Sirius.

Veteran media executive Mel Karmazin, currently Sirius CEO, will be CEO of the combined company, and Gary Parsons, now chairman of XM, will hold the same position in the new company. The deal will need regulatory approval.

((Reporting by Dane Hamilton, editing by Leslie Gevirtz; Reuters messaging: dane.hamilton.reuters.com@reuters.net. 646 223 6161)) Keywords: SIRIUS XM/

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