$201m IPO Planned by XM Satellite Radio

02 March 2001

Following the astutely timed news of its distribution alliance with Radio Shack [WAMN: 27-Feb-01], XM Satellite Radio yesterday announced a further public offering of its shares.

Following its successful $100 million offering on February 21, the satellite broadcaster now plans to float a further tranche of common stock and convertible notes totalling $201.4m.

The twin offerings are intended to fund the company’s marketing and operational activities through 2002 and follow in the wake of a similar exercise by rival Sirius Satellite Radio, which also plans to offer Joe Public one hundred high-quality digital radio channels from this spring/summer at $9.95 monthly.

But Sirius has stolen a march on XM. Its three satellites are already circling the globe whereas XM’s January launch was postponed and is now scheduled for March 18.

News source: Advertising Age - Daily Deadline