If the deal is struck, XM Chairman Gary Parsons is likely to remain as Chairman for the combined group, while Sirius’ Mel Karmazin will fill the CEO position. The combined company would have roughly 12 million subscribers and would save both firms close to $7 billion per year.
Initial rumors about the deal popped up in mid-2006, with both Karmazin and Parsons admitting a merger would be necessary to combat the growing competition from conventional radio, online radio and downloaded music.