XM To Buy WCS Wireless
By Amy Gilroy -- TWICE, 7/14/2005
Washington, D.C. — XM Satellite Radio is seeking to acquire more usable wireless spectrum by signing an agreement to buy WCS Wireless for 5.5 million shares in stock.
Based on the closing price of $35.62 on the NASDAQ yesterday, the deal would be worth just under $200 million, according to a published report.
XM said WCS’ principal assets are wireless spectrum licenses.
A statement from XM said the acquisition of WCS Wireless “provides XM an exceptional opportunity to expand its existing business with a variety of multimedia subscription services, including innovative video and data offerings, transmitted over these new frequencies.”
WCS spectrum licenses are in geographic areas covering 163 million people throughout the United States, including 15 of the top 20 metro areas.
XM said WCS licenses include 10MHz in the frequency bands adjacent to XM’s service.
XM said it expects to close the transaction by before the end of the year, and it will announce more detailed plans for use of the additional spectrum in the future.
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