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-----BEGIN PRIVACY-ENHANCED MESSAGE-----Proc-Type: 2001,MIC-CLEAROriginator-Name: [email protected]: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQABMIC-Info: RSA-MD5,RSA, WLi/iKFVWNO/V5U8FsA9KsV8CA6wFjQtKv8mpucRAWaUajv5hoKLk2gyvfAa6+mM qnWknw/l5yu79+y0oeKqtg==

0000950123-07-011986.txt : 200708270000950123-07-011986.hdr.sgml : 2007082720070827172823ACCESSION NUMBER:0000950123-07-011986CONFORMED SUBMISSION TYPE:425PUBLIC DOCUMENT COUNT:8FILED AS OF DATE:20070827DATE AS OF CHANGE:20070827

SUBJECT COMPANY:

COMPANY DATA:COMPANY CONFORMED NAME:XM SATELLITE RADIO HOLDINGS INCCENTRAL INDEX KEY:0001091530STANDARD INDUSTRIAL CLASSIFICATION:COMMUNICATION SERVICES, NEC [4899]IRS NUMBER:541878819STATE OF INCORPORATION:DEFISCAL YEAR END:1231

FILING VALUES:FORM TYPE:425SEC ACT:1934 ActSEC FILE NUMBER:000-27441FILM NUMBER:071081554

BUSINESS ADDRESS:STREET 1:1500 ECKINGTON PL NECITY:WASHINGTONSTATE:DCZIP:20002BUSINESS PHONE:2023804000

MAIL ADDRESS:STREET 1:1500 ECKINGTON PL NECITY:WASHINGTONSTATE:DCZIP:20002

FILED BY:

COMPANY DATA:COMPANY CONFORMED NAME:SIRIUS SATELLITE RADIO INCCENTRAL INDEX KEY:0000908937STANDARD INDUSTRIAL CLASSIFICATION:RADIO BROADCASTING STATIONS [4832]IRS NUMBER:521700207STATE OF INCORPORATION:DEFISCAL YEAR END:1231

FILING VALUES:FORM TYPE:425

BUSINESS ADDRESS:STREET 1:1221 AVENUE OF THE AMERICASSTREET 2:36TH FLOORCITY:NEW YORKSTATE:NYZIP:10020BUSINESS PHONE:2128995000

MAIL ADDRESS:STREET 1:1221 AVENUE OF THE AMERICASSTREET 2:36TH FLOORCITY:NEW YORKSTATE:NYZIP:10020

FORMER COMPANY:FORMER CONFORMED NAME:CD RADIO INCDATE OF NAME CHANGE:19940203

4251y39120ae425.htmFILED PURSUANT TO RULE 425

FILED PURSUANT TO RULE 425

Filed by Sirius Satellite Radio Inc.
Pursuant to Rule425 under the
Securities Act of 1933 and deemed filed
pursuant to Rule14a-12 under the
Securities Exchange Act of 1934

Subject Company: XM Satellite Radio Holdings Inc.
Commission File No.: 0-27441

This communication contains forward-looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995. Such statements include, but are not limited to,statements about the benefits of the business combination transaction involving Sirius SatelliteRadio Inc. and XM Satellite Radio Holdings Inc., including potential synergies and cost savings andthe timing thereof, future financial and operating results, the combined companys plans,objectives, expectations and intentions with respect to future operations, products and services;and other statements identified by words such as anticipate, believe, plan, estimate,expect, intend, will, should, may, or words of similar meaning. Such forward-lookingstatements are based upon the current beliefs and expectations of SIRIUS and XMs management andare inherently subject to significant business, economic and competitive uncertainties andcontingencies, many of which are difficult to predict and generally beyond the control of SIRIUSand XM. Actual results may differ materially from the results anticipated in these forward-lookingstatements.

The following factors, among others, could cause actual results to differ materially from theanticipated results or other expectations expressed in the forward-looking statement: generalbusiness and economic conditions; the performance of financial markets and interest rates; theability to obtain governmental approvals of the transaction on a timely basis; the failure ofSIRIUS and XM stockholders to approve the transaction; the failure to realize synergies andcost-savings from the transaction or delay in realization thereof; the businesses of SIRIUS and XMmay not be combined successfully, or such combination may take longer, be more difficult,time-consuming or costly to accomplish than expected; and operating costs and business disruptionfollowing the merger, including adverse effects on employee retention and on our businessrelationships with third parties, including manufacturers of radios, retailers, automakers andprogramming providers. Additional factors that could cause SIRIUS and XMs results to differmaterially from those described in the forward-looking statements can be found in SIRIUS and XMsAnnual Reports on Form 10-K for the year ended December31, 2006, and Quarterly Reports on Form10-Q for the quarters ended March31, 2007 and June30, 2007, which are filed with the Securitiesand Exchange Commission (the SEC) and available at the SECs Internet site (http://www.sec.gov).The information set forth herein speaks only as of the date hereof, and SIRIUS and XM disclaim anyintention or obligation to update any forward looking statements as a result of developmentsoccurring after the date of this communication.

Important Additional Information Will be Filed with the SEC

This communication is being made in respect of the proposed business combination involvingSIRIUS and XM. In connection with the proposed transaction, SIRIUS has filed with the SEC aRegistration Statement on Form S-4 containing a preliminary Joint Proxy Statement/Prospectus andeach of SIRIUS and XM plans to file with the SEC other documents regarding the proposedtransaction. The definitive Joint Proxy Statement/Prospectus will be mailed to stockholders ofSIRIUS and XM. INVESTORS AND SECURITY HOLDERS OF SIRIUS AND XM ARE URGED TO READ THE PRELIMINARYJOINT

PROXY STATEMENT/PROSPECTUS AND THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS WHEN IT BECOMESAVAILABLE, AS WELL AS OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEYBECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.

Investors and security holders can obtain free copies of the Registration Statement and theJoint Proxy Statement/Prospectus and other documents filed with the SEC by SIRIUS and XM throughthe web site maintained by the SEC at www.sec.gov. Free copies of the Registration Statement andthe Joint Proxy Statement/Prospectus and other documents filed with the SEC can also be obtained bydirecting a request to Sirius Satellite Radio Inc., 1221 Avenue of the Americas, 36thFloor, New York, NY 10020, Attention: Investor Relations or by directing a request to XM SatelliteRadio Holdings Inc., 1500 Eckington Place, N.E. Washington, DC 20002, Attention: InvestorRelations.

SIRIUS, XM and their respective directors and executive officers and other persons may bedeemed to be participants in the solicitation of proxies in respect of the proposed transaction.Information regarding SIRIUS directors and executive officers is available in its Annual Report onForm 10-K for the year ended December31, 2006, which was filed with the SEC on March1, 2007, andits proxy statement for its 2007 annual meeting of stockholders, which was filed with the SEC onApril23, 2007, and information regarding XMs directors and executive officers is available inXMs Annual Report on Form 10-K, for the year ended December31, 2006, which was filed with the SECon March1, 2007 and its proxy statement for its 2007 annual meeting of stockholders, which wasfiled with the SEC on April17, 2007. Other information regarding the participants in the proxysolicitation and a description of their direct and indirect interests, by security holdings orotherwise, is contained in the preliminary Joint Proxy Statement/Prospectus filed with the SEC.

***

SIRIUS website, which is available at www.SIRIUSmerger.com and has information about SIRIUSproposed merger, has been updated. The updates include the information being filed herewith.

Phantom threats to consumer choice
Rocky Mountain News
August18, 2007

The Federal Trade Commissions so-far futile attempt to block the purchase of Wild Oats by WholeFoods has wasted loads of time and money. Assuming the FTCs court appeal fails, too, the exercisecould still have at least one healthy outcome if it prompts federal officials to reassess theiroutdated theories about what qualifies as a monopoly.

Anyone who regularly shops for groceries knows that Whole Foods is not about to enjoy anythingclose to a stranglehold on natural and organic foods if this merger goes through. So how did FTCofficials convince themselves that captive consumers were about to be fleeced?

In part by examining only a narrow slice of the retail grocery market while discounting the broadercompetition that dwarfs the mini-rivalry between Wild Oats and Whole Foods.

The same mistake was made a few years ago when Douglas County-based EchoStar tried to buy DirecTVbut was blocked by the Federal Communications Commission, which acted as if satellite TV were atelecom world unto itself. In fact, even had the two merged, the resulting company would havecontrolled only 17percent of the pay TV market.

The proposed merger of XM Satellite Radio and Sirius is provoking similarly blinkered argumentsabout its alleged threat to competition as if music lovers dont enjoy a host of other options.If satellite radio is such an insulated cash cow, you have to wonder why Sirius reported yetanother loss earlier this month.

Were not suggesting regulators give a pass to every merger plan. Anti-competitive deals that leaveconsumers with no place to turn are rare, but they occur. Unfortunately, the tendency to see marketdominance where none exists is prevalent even for industries undergoing rapid transformation.

The most vivid example of this concerns the news media. Federal ownership rules ban or limit, amongother things, the number of TV stations that can be owned by one company in a local market, thenumber of radio stations that can be owned by a TV station in the same city, the ownership of a TVor radio station and a newspaper in the same market, and even the percentage of U.S. households abroadcast TV owner can reach.

To say these rules are antiquated in the age of the Internet and such devices as the iPhone is anunderstatement. Yet every plea to bring them into the 21st century is met by outrage frompoliticians and consumer advocates, who claim the rules protect a diversity of views.

Incredibly, sentiment may be growing for greater regulation. Democratic presidential candidate JohnEdwards and others worry that News Corp.s purchase of Dow Jones & Co., which owns The Wall StreetJournal, signals the need for more restrictions on the cross- ownership of media. In a letter tothe FCC, Sen. Christopher Dodd, D-Conn., claimed this buyout will result in an overly consolidatedmedia market, imperiling the diversity of opinions available to residents of the greater New Yorkarea and across the country.

Would someone introduce that man to wireless service and cable, and then escort him to theperiodical section of the nearest Barnes & Noble to give him an inkling of the diversity ofopinions available in this land?

In appealing a judges ruling allowing the Wild Oats/ Whole Foods merger, the FTC is refusing tolearn from its mistakes. We can only hope other federal officials are more open to the realities ofcompetition in an age where consumers enjoy such a cornucopia of choice.


Julian C. Day

July 13, 2007

Marlene H. Dortch, Secretary
Federal Communications Commission
445 12th Street. SW
Washington DC 20554

Re: Application for Authority to Transfer Control of XM Radio Inc. and Sirius Satellite Radio Inc., MB Docket No.07-57

Dear Ms. Dortch:

RadioShack Corporation (RadioShack) supports the above-referenced application concerning the proposed merger of Sirius Satellite Radio Inc. (Sirius) and XM Radio Inc. (XM). RadioShack is one of the nations most experienced and trusted consumer electronicsspecialty retailers. We sell Sirius satellite radios, services, and plans in our stores and dealer outlets, as well as through our web site. We believe that a merger of Sirius and XM will benefit consumers, including those that purchase satellite radio productsand services from RadioShack.

Simply put, a merger of Sirius and XM will enhance the choices available to subscribers of one or the other service. Once the merger is approved, for example, consumers who have purchased Sirius service from one of our outlets will have access to a broadervariety of satellite radio programming. Today, consumers with an interest in satellite radio must either: (1)choose between Sirius and XM, foregoing some of the most appealing channels available on the other service or (2)subscriber to both services, whichmeans purchasing two satellite radios and paying for two subscriptions. Soon after the merger closes, these choices will increase. In addition to the two options noted, consumers also will be able to receive the most popular channels offered by both servicesaver a single device and for a single monthly fee.

Further, the merger will help speed the development and future commercial release of interoperable satellite radios. Once this occurs, all satellite radio subscribers will have the added ability to receive the complete line-up offered by both Sirius and XM onone receiver at a monthly price that is considerably lower than that of subscribing to both services today.

Marlene H. Dortch, Secretary
Page 2

More broadly, this merger proposes to combine two small players in the audio entertainment market. As a result, the merger will bring greater vitality and financial resources to this upstart technology. Allowing this to happen will, in turn, spark a newgeneration of services and products with more advanced and user-friendly features. Consumers, of course, will be better off as a result.

For these reasons, RadioShack urges the FCC to approve the Sirius-XM application.

Respectfully submitted,

Press Release

FOR IMMEDIATE RELEASE

Contact: John Zippert 205 652 9676

August21, 2007

The Federation/LAF Throws Its Support Behind
SIRIUS/XM Satellite Radio Merger

EPES, ALABAMA... The Federation of Southern Cooperatives/Land Assistance Fund today announced it isin favor of the merger between SIRIUS Satellite Radio (Nasdaq: SIRI) and XM Satellite Radio(Nasdaq: XMSR) in a letter filed with the Federal Communications Commission (FCC).

Rural communities are consistently undeserved by the lack of diversity in programming that localterrestrial radio broadcasters provide, said Ralph Paige, Executive Director of the Federation ofSouthern Cooperatives/LAF. A merger of SIRIUS and XM will bring lower prices and increasedprogramming choices to the over 20,000 rural member families of the Federation/LAF in twelvesouthern states.

In its letter to the FCC, the Federation/LAF cited the benefits that a la carte options and otherlow-cost, bundled programming packages would provide for rural and minority consumers.

Our members clearly benefit from the ability to select the programs that are most applicable totheir businesses, families, and personal interests, added Paige. We are also encouraged by thecommitments that SIRIUS and XM have made to enhance the diversity and breadth of programming forminority audiences.

A merger of the two companies will enhance its capacity to deliver emergency alerts and up-to-dateweather information to even more remote areas, helping guide agricultural planning and preparationfor potential natural disasters. By lowering the monthly cost in many of its packages, a mergedcompany will add more subscribers among black family farmers across the South who would greatlybenefit from these services.

The Federation/LAF filed its letter with the FCC on August13th and urged the Commissionto act swiftly in its approval.

###

Note: The Federation/LAF, now in its 40th year, assists Black family farmers across the South withfarm management, debt restructuring, alternative crop suggestions, marketing expertise and a wholerange of services to ensure family farm survivability.

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