XM Satellite Radio to Investment in Noah A. Samara’s WorldSpace

Noah A. Samara CEO

XM Satellite Radio today announced that it has made a strategic investment of $25 million in the common stock of WorldSpace, Inc., a leading satellite radio provider for Asia, Europe, the Middle East and Africa which was founded by Chairman and CEO Noah A. Samara.

XM will cooperate with WorldSpace to develop satellite radio products, technology and distribution and supplier networks. In addition, XM can acquire $37.5 million in additional WorldSpace stock and has the option of investing in future projects in other countries.

WorldSpace, which was one of the principal founding shareholders of XM, has recently filed for an initial public offering of its stock. The company on Tuesday raised the expected price of its planned initial public offering to $18 to $20 per share, from $16 to $18.

WorldSpace was founded in 1990 by 34 year old Noah A. Samara and was one of the initial owners of XM Satellite Radio. Through its subscription-based service, WorldSpace broadcasts news, music brand name content and educational programming to a global service area and targets its programming to consumers, governments, and other organizations. The company utilizes its two geo-stationary satellites, AfriStar and AsiaStar, and its ownership of spectrum licenses to deliver more than 100 digital quality audio channels per satellite as well as multimedia content directly to WorldSpace Satellite Radio receivers.