Sirius XM
Sirius XM Holdings Inc. is an American broadcasting corporation headquartered in Midtown Manhattan, New York City, that provides satellite radio and online radio services operating in the United States. The company was formed by the 2008 merger of Sirius Satellite Radio and XM Satellite Radio, merging them into SiriusXM Radio. The company also has a 70% equity interest in Sirius XM Canada,[2] an affiliate company that provides Sirius and XM service in Canada. On May 21, 2013, Sirius XM Holdings, Inc. was incorporated,[2] and in January 2020, SiriusXM reorganized their corporate structure, which made Sirius XM Radio Inc. a direct, wholly owned subsidiary of Sirius XM Holdings, Inc.[3]
Company type
- Nasdaq: SIRI
- Nasdaq-100 component
July 29, 2008
United States and Canada
- Greg Maffei (chairman)
- Jennifer Witz (CEO)
- Scott Greenstein (president and CCO)
- Sean S. Sullivan (CFO)
US$8.953 billion (2023)
US$1.946 billion (2023)
US$1.258 billion (2023)
US$10.37 billion (2023)
US$−2.56 billion (2023)
5,680 (2023)
Liberty Media (84%)
- Sirius XM Radio
- Pandora
- Stitcher
- Automatic Labs
- Sirius XM Canada (32.1%)
The U.S. Federal Communications Commission (FCC) approved the merger of XM Satellite Radio and Sirius Satellite Radio, Inc. on July 29, 2008, 17 months after the companies first proposed it.[4] The merger created a company with 18.5 million subscribers,[4] and the deal was valued at US$3.3 billion, not including debt.[5] The proposed merger was opposed by those who felt it would create a monopoly. Sirius and XM argued that a merger was the only way that satellite radio could survive.[5]
In September 2018, the company agreed to purchase the streaming music service Pandora,[6][7] and this transaction was completed on February 1, 2019.[8] Since then, SiriusXM has grown to be the largest audio entertainment company in North America.[9]
As of July 12, 2022, SiriusXM had approximately 34 million subscribers.[2]
SiriusXM Radio is a primary entry point for the Emergency Alert System.[10]
Post-merger[edit]
Resurgence and growth[edit]
After coming close to filing for Chapter 11 bankruptcy protection, only months after the 2008 merger, and having gone so far as to hire lawyers to prepare a possible filing,[52] SiriusXM was able to avoid declaring bankruptcy with the assistance of a US$530 million loan from Liberty Media, the media conglomerate founded by John C. Malone in February 2009. Mel Karmazin negotiated the deal in exchange for a 40% equity stake in SiriusXM.[53][54]
In the fourth quarter of 2009, SiriusXM posted a profit for the first time, with a net income of US$14.2 million. This came after net losses of US$245.8 million in the year following the merger. The company's resurgence was owed in part to the loan from Liberty Media. Increased automobile sales in the U.S. were also a factor. SiriusXM ended 2009 with 18.8 million subscribers.[53] By the end of 2012, SiriusXM's subscriber base had grown to 23.9 million, mostly due to an increase in partnerships with automakers and car dealers; a strong push in the used-car market; and continued improved car sales in the U.S. in general. The renewal of radio show host Howard Stern's contract through 2015 (US$400 million for five years, US$100 million less than Stern's previous five-year deal) was also a factor in the company's steady growth, as Stern's show attracted over 12 million listeners per week.[54][55]
By 2017, SiriusXM penetrated approximately 75% in the new car market. Out of that 75%, approximately 40% of owners become subscribers. SiriusXM is now available in cars from every major car company, as well as in assorted trucks, boats and aircraft. The company offers trial subscriptions to new car owners and then offers customers a variety of subscription options. There are more than 100 million cars on the road with SiriusXM radios installed.
After trying for four years, on December 21, 2010, SiriusXM received approval from the FCC to add service in Alaska and Hawaii. SiriusXM announced on January 17, 2011, that it would place repeaters in those states and adjust three of its satellites to cover those areas. The move gave SiriusXM coverage in all 50 states.[56]
On January 12, 2011, XM Satellite Radio, Inc. was dissolved as a separate entity and merged into SiriusXM Radio, Inc.[57] On April 11, 2011, the Canadian Radio-television and Telecommunications Commission (CRTC) approved the merger of Sirius and XM's Canadian affiliates in Sirius XM Canada.[58]
On April 11, 2013, a New York appeals court upheld a New York judge's ruling, from April 2012, that Howard Stern was not entitled to stock bonuses despite SiriusXM having exceeded its subscriber target projections. The trial court ruled that subscribers to XM Satellite Radio from before the SiriusXM merger should not be counted as "Sirius subscribers" for the purposes of Stern's lawsuit. Stern argued the opposite because, among other factors, his popularity had played an integral role in helping Sirius acquire XM. He had been seeking US$330 million in stock bonuses.[59][60] The trial court declared summary judgment in favor of SiriusXM, and a New York appeals court panel concurred, refusing to hear the case.
In 2017, SiriusXM surpassed 32 million subscribers.
On September 24, 2018, SiriusXM announced its intent to acquire Pandora for US$3.5 billion.[61] The acquisition was completed on February 1, 2019.[62] On October 19, 2020, SiriusXM announced that it completed the acquisition of Stitcher.[63] In April 2021, SiriusXM acquired 99% Invisible Inc. the company that produces Roman Mars's 99% Invisible radio show and podcast.[64] In 2022, SiriusXM purchased Conan O'Brien's digital media assets, including his podcast Conan O'Brien Needs a Friend for $150 million.[65]
In March 2023, SiriusXM announced it would cut 475 employees that amounts to 8% of its workforce. CEO Jennifer Witz cited economic uncertainty and a need to operate with "greater agility and efficiency."[66]
By 2023, Liberty Media had become SiriusXM's majority owner with an 83% stake, which it held through the Liberty SiriusXM Group (LSXM) tracking stock. In September 2023, Liberty proposed to spin off LSXM and combine it with SiriusXM. Existing LSXM stockholders such as John Malone would initially hold combined interests of approximately 84% in the restructured company. The proposal is subject to review by a special committee of SiriusXM's independent directors.[67]
Executives[edit]
Following the merger, Sirius CEO Mel Karmazin became CEO of the combined company, and XM chairman Gary Parsons retained his role.[68] XM CEO and co-founder Hugh Panero stepped down in August 2007, shortly after the merger was first announced.[5]
XM Satellite Radio executives who were not offered jobs in the new combined company were assured golden parachute severance packages that had been approved in 2007. Former CEO Nate Davis received a severance package worth US$10 million. Erik Toppenberg, executive vice president of programming, received a severance package worth US$5.34 million. CFO Joseph Euteneuer received a severance package worth US$4.9 million. Vernon Irvin, chief marketing officer, received a severance package worth US$4.5 million.[69]
In November 2009, Parsons resigned as chairman of Sirius XM, receiving a payout of more than US$9 million.[34][69] He was succeeded by Eddy Hartenstein, former publisher and CEO of the Los Angeles Times.[34] In December 2012, Mel Karmazin stepped down as Sirius XM CEO after Liberty Media gained control of 49.5% of the company. James E. Meyer was named interim CEO.[70] On April 30, 2013, he was named permanent CEO.[71] Also in April 2013, Liberty Media CEO Greg Maffei was named Sirius XM's chairman, succeeding Hartenstein.[72]
In October 2019, Denise Karkos was named Chief Marketing Officer[73] and in November 2019, Alex Luke was named Senior VP of Digital Content for SiriusXM and Pandora.[74]
In September 2020, SiriusXM announced that Jennifer Witz will succeed James Meyer as the company's Chief Executive Officer once he retires by December 31, 2020. The company also hired AMC Networks Inc's Sean Sullivan as Chief Financial Officer.[75]
In December 2021, Joe Inzerillo, former CTO of Disney Streaming Services, was named the Chief Technology Officer of SiriusXM.[76]
Internet and mobile[edit]
Sirius XM radio content is available to stream online either as an add-on to existing subscriptions or as an Internet-only option.[77]
In August 2011, SiriusXM announced that the company would start offering a personalized interactive online radio experience. MySXM debuted on April 15, 2013, allowing users to fine-tune over 50 existing Sirius XM channels. MySXM is available to all Sirius XM subscribers.[77][78]
The internet player allows subscribers to customize most stations to their liking by adjusting settings like: familiar/hits or unfamiliar/depth, studio recordings or live performances, and new/recent or old/classic material. These customized stations also allow listeners to play music without DJ interruptions. SiriusXM apps also include an extensive lineup of archived programming on SiriusXM On Demand.
On June 17, 2009, Sirius XM released an application for use on Apple's iPhone and iPod Touch, allowing its subscribers to listen to its programming on those devices. The application did not feature all of the programming available to satellite listeners.[79] On March 17, 2011, the application was also made available for the iPad.[80] In 2012, the application was updated for iOS and Android, featuring additional content, and the ability to pause, rewind, and fast-forward through audio streams.[81]