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XM Satellite Radio Terminates Deal to Acquire WCS Wireless

Authored by dmw on May 23, 2006 - 7:24pm.
Washington - After failing to gain the necessary government approvals, XM Satellite Radio, a provider of satellite radio service to more than 6.5 million subscribers, said that it has terminated its planned acquisition of WCS Wireless, a Nevada-based owner of wireless spectrum licenses in geographic areas covering 163 million people throughout the U.S. The deal, which was worth about $200 million when announced last July -- but has since seen its value fall significantly with XM's dwindling share price -- was supposed to give XM the resources to launch a variety of new video and data offerings. Without regulatory approval, however, the two sides agreed to terminate the deal, freeing WCS to pursue other alternatives for its spectrum. The news sent shares of XM down 3.8% on Tuesday.
tags: Deals | Radio | Satellite Radio | XM Radio | Radio Deals | Acquisitions | Terminations | WCS Wireless |

XM Satellite Radio to Acquire WCS Wireless for $200 Million

Authored by Mark Hefflinger on July 14, 2005 - 10:00am.
Washington -- Preparing to develop new video subscription services, XM Satellite Radio, a provider of satellite radio services with more than 4.4 million subscribers, said that it plans to acquire WCS Wireless, a Nevada-based owner of wireless spectrum licenses in geographic areas covering 163 million people throughout the U.S., including 15 of the top 20 metropolitan markets. Under the deal, XM will pay 5.5 million shares of its stock, worth approximately $200 million. WCS's licenses include 10 megahertz in the frequency bands adjacent to XM's satellite radio service, which XM said that it plans to use to launch a variety of new video and data offerings. The company said that it will expects to announce more detailed plans for the use of this additional spectrum in the future. The deal is expected to close by the end of the year.
tags: WCS Wireless | Acquire | Acquisition | XM Satellite Radio |