America Online and XM Satellite Radio said they are joining forces to create a new online radio service. According to the companies, the new service brings together the best of XM and the AOL Radio Network. The new co-branded service will include a free Web radio offering and an enhanced premier radio offering that will be available to AOL members at no additional charge and as a premium service to consumers on the Web. The new service is expected to be available at the beginning of the summer.

“Our philosophy at XM has been to work with strong partners at every level: retail, automotive and now online to build awareness and subscriptions for XM,” said XM President and CEO Hugh Panero in a prepared statement. “We are thrilled to be partnering with AOL and combining the creative resources of these two great companies.”