Sirius sees $400 mln in 2009 savings after XM deal
June 30th, 2008 | by admin |NEW YORK (Reuters) - Sirius Satellite Radio said on Monday it expects to save $400 million in 2009 as a result of its proposed acquisition of XM Satellite Radio Holding Inc, which is still being scrutinized by federal regulators.
The combined company expects in 2009 to earn $300 million in net income before interest and investment income, and interest, depreciation and non-cash stock compensation expenses, otherwise known as adjusted EBITDA, Sirius said.
The deal, announced in February 2008, still requires approval of the U.S. Federal Communications Commission.
While not guaranteed, the deal earlier this month appeared to move closer to consummation after FCC Chairman Kevin Martin said he would support the deal, with the companies agreeing to a series of conditions.
Sirius added that the combined company is expected to achieve positive free cash flow, before satellite capital expenditures, for the full year 2009.
(Reporting by Franklin Paul, editing by Dave Zimmerman)
