straight from the CEOs

XM Satellite Radio Holdings

• Industry: Satellite radio
• Location: Washington, DC

Gary Parsons
Chairman, XM Satellite Radio

Background

In the late 1990s Gary Parsons approached Columbia Capital partner Jim Fleming seeking a partner to assemble the business plan and financial resources to launch satellite radio in the US. Gary's vision was to leverage technology breakthroughs and regulatory developments in satellite communications to usher in the next-generation of radio. Columbia Capital's experience in the satellite industry, deep knowledge of the US wireless spectrum landscape, and capital raising experience made the firm an ideal partner for Gary.

Columbia Capital's Role

Jim and Gary worked together to develop all aspects of XM's business plan. Columbia Capital helped XM obtain the nationwide spectrum licenses that were needed to deliver XM's services. Most importantly, Columbia Capital was a leader in the investor syndicate, leading the A round and playing an instrumental role in each round of subsequent financings. In particular, during the extremely turbulent financial markets for communications companies in 2001-2003 Columbia Capital helped orchestrate numerous challenging financings that provided the underpinnings for XM's success today.

The End Result

Since its founding XM Satellite Radio (NASDAQ: XMSR), the leading satellite radio service provider, has ramped to over seven million subscribers, revenue of over $900M in 2006, and a 2006 year end market capitalization of $3.9 billion. XM is available in more than 140 different vehicle models in 2006, and is distributed at electronics retailers nationwide including Walmart, Best Buy, Circuit City, and Sears. XM's innovation has brought radio into the digital age and created a valuable new service for millions of customers.