XM, Sirius announce mergerThe two satellite radio operators will combine in a merger of equals, leaving Parsons as chairman and Karmazin as CEO.February 19 2007: 3:15 PM EST

NEW YORK (CNNMoney.com) -- Rivals XM Satellite Radio Holdings Inc. and Sirius Satellite Radio announced Monday they would enter into a merger of equals, creating a satellite radio giant.

As part of the deal, XM Chairman Gary Parsons would remain chairman of the combined firm, while Sirius' Mel Karmazin would assume the role of CEO.

  

The deal would also provide listeners a substantially wider variety of programming. Sirius is currently home to shock jock Howard Stern, while XM boasts a number of programs hosted by such high-profile entertainers as Bob Dylan.

Speculation has run rampant on Wall Street about a possible tie-up between XM (Charts) and Sirius (Charts) since the beginning of the year.