Panero's XM In Move To Double Airwaves
Greg Levine, 07.13.05, 7:57 PM ET
NEW YORK - Doers and doings in business, entertainment and technology:
Hugh Panero
The sky is the metaphorical limit for XM Satellite Radio (nasdaq: XMSR - news - people ). But in practical terms, it has other ceilings. Led by Chief Executive Hugh Panero, the firm pushed the proverbial envelope Wednesday, in a move analysts estimate will double the amount of content it can offer subscribers. XM said it is forking over almost $200 million in stock to buy up more broadcasting licenses. The deal involves buying a privately held entity, WCS Wireless, for 5.5 million shares in stock. Based on XM's closing price of $35.62 on the Nasdaq Wednesday, the deal would be worth just under $200 million. The orbital broadcaster has been locked in struggle with smaller rival Sirius Satellite Radio Holdings (nasdaq: SIRI - news - people ). The latter is led by Viacom (nyse: VIAb - news - people ) ex-President Mel Karmazin, a long-time radio vet who's building a stable with such high-profile lures as Martha Stewart, "parrothead" balladeer Jimmy Buffett, legendary Gotham DJ Bruce "Cousin Brucie" Morrow and in January 2006, perhaps the crowning jewel: Howard Stern. But while Sirius may promise the flashier content for now, will it be able to compete with Panero's growth strategy--when the latter already boasts a war chest of 4.4 million subscribers to Sirius' 1.5 million? A lot can happen between now and January.
Greg Levine, 07.13.05, 7:57 PM ET
NEW YORK - Doers and doings in business, entertainment and technology:
Hugh Panero
The sky is the metaphorical limit for XM Satellite Radio (nasdaq: XMSR - news - people ). But in practical terms, it has other ceilings. Led by Chief Executive Hugh Panero, the firm pushed the proverbial envelope Wednesday, in a move analysts estimate will double the amount of content it can offer subscribers. XM said it is forking over almost $200 million in stock to buy up more broadcasting licenses. The deal involves buying a privately held entity, WCS Wireless, for 5.5 million shares in stock. Based on XM's closing price of $35.62 on the Nasdaq Wednesday, the deal would be worth just under $200 million. The orbital broadcaster has been locked in struggle with smaller rival Sirius Satellite Radio Holdings (nasdaq: SIRI - news - people ). The latter is led by Viacom (nyse: VIAb - news - people ) ex-President Mel Karmazin, a long-time radio vet who's building a stable with such high-profile lures as Martha Stewart, "parrothead" balladeer Jimmy Buffett, legendary Gotham DJ Bruce "Cousin Brucie" Morrow and in January 2006, perhaps the crowning jewel: Howard Stern. But while Sirius may promise the flashier content for now, will it be able to compete with Panero's growth strategy--when the latter already boasts a war chest of 4.4 million subscribers to Sirius' 1.5 million? A lot can happen between now and January.
