XM, Starbucks End Pact
January 7, 2008 at 3:53 PM (PT)
XM SATELLITE RADIO and STARBUCKS INC. are ending their marketing deal, with XM issuing about 1.85 million shares to STARBUCKS at an aggregate value of $22 million to terminate the contract. STARBUCKS can sell the shares at the end of SEPTEMBER and may be issued more shares if the total raised in the sale is less than $22 million.
XM will continue to air the STARBUCKS channel, which has been renamed "STARBUCKS XM CAFE," for a limited time but is expected to eventually drop the channel.