XM Satellite Radio announced July 19 an initial $25 million investment in international satellite radio broadcaster WorldSpace, which currently targets Africa and Asia.


WASHINGTON, D.C. -- XM Satellite Radio announced July 19 an initial $25 million investment in international satellite radio broadcaster WorldSpace, which currently targets Africa and Asia.

WorldSpace also has filed paperwork with the Securities Exchange Commission for an initial public offering in the United States. Along with making the initial $25 million investment in WorldSpace stock, XM said it will receive warrants to acquire another $37.5 million in WorldSpace stock "and an option to invest along with WorldSpace and other partners in various countries around the world."

In a prepared statement, XM chairman Gary Parsons said, "We look forward to becoming a strategic investor in WorldSpace's worldwide satellite radio system and advancing satellite radio technology and reach through our cooperative efforts."

XM also said it will "cooperate with WorldSpace to develop satellite radio products, technology and distribution and supplier networks."