XM Invests in WorldSpace

XM Invests in WorldSpace
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XM Satellite Radio has purchased $25 million of WorldSpace stock. The companies, both headquartered in Washington, already had a relationship; they shared early engineering development experience, as XM evolved to serve the U.S. and WorldSpace Asia, Europe, the Middle East and Africa with digital satellite radio services.
In connection with the investment, XM and WorldSpace said they'll cooperate to develop satellite radio products, technology and distribution and supplier networks. XM will have the opportunity to acquire $37.5 million in additional WorldSpace stock and an option to invest along with WorldSpace and other partners in various countries.
The goal is to extend satellite radio's reach, noted XM Chairman Gary Parsons.


WorldSpace Seeks to Become 'Voice From Home'

Right now, virtually all U.S. media stories about satellite radio focus on XM and Sirius. But WorldSpace, which the Ethiopian-born Samara founded in 1990 at age 34 and which began satellite audio services in 1999, seems to be at a critical point in its own growth.