XM, Sirius cost saving prediction
October 10, 2008
Amid the latest rumours that FCC approval for the deal is imminent, Sirius has provided a first look at the financial future of the company after the proposed merger with XM Satellite Radio. Sirius said that savings from combining with XM would total $400 million (E254m) next year, net of costs. Sirius also said that the combined companies would earn $300 million in 2009 before interest, taxes, depreciation and amortization.
Sirius said that if its pending merger with XM goes through, free cash flow would be positive in 2009 before factoring in capital expenditures. Synergies, earnings and cash flow would continue to improve in subsequent years, said Mel Karmazin, Sirius’s chief executive. He said the company would provide more detail in coming months.