XM Satellite Radio, a satellite radio company with more than 4.4 million subscribers, announced Tuesday, July 19, that it had made an investment of $25 million in the common stock of WorldSpace Inc., a satellite radio provider for Asia, Europe, the Middle East and Africa.
In connection with the investment, XM will cooperate with WorldSpace to develop satellite radio products, technology and distribution and supplier networks. In addition, XM will have warrants to acquire $37.5 million in additional WorldSpace stock and an option to invest along with WorldSpace and other partners in various countries around the world.
Through its subscription-based service, WorldSpace broadcasts news, music, brand-name content and educational programming to a global service area. The company utilizes its two geo-stationary satellites, AfriStar and AsiaStar, and its ownership of spectrum licenses to deliver more than 100 audio channels per satellite – as well as multimedia content – directly to WorldSpace Satellite Radio receivers.