Sirius Sets Post-Merger Financial Guidance
[Satellite Today – 6-30-08] Sirius Satellite Radio expects to achieve synergies of about $400 million in 2009 if its merger with XM Satellite Radio is approved, Sirius announced June 30.
The company also expects to report earnings before interest, taxes, depreciation and amortization (EBITDA) of about $300 million and to achieve positive free cash flow, before satellite capital expenditures, for the full year 2009. Neither Sirius nor XM has reported positive EBITDA or achieved free cash flow for a full year.
"The upside potential from this merger is significant. In addition, the synergies, adjusted EBITDA and free cash flow are expected to continue to grow in subsequent years, and we look forward to providing more detail of this growth in coming months," Mel Karmazin, CEO of Sirius who will serve as CEO of the combined company, said in a statement.
The proposed deal has been approved by the U.S. Department of Justice must but still be approved by the U.S. Federal Communications Commission.