Starbucks won’t actually be selling XM Satellite Radio shares in its coffee shops, but XM has filed with the SEC for Starbucks to sell 22 million bucks worth of XM stock. Starbucks got the shares in return for letting XM out of a marketing agreement.
As of December 31, 2007, XM says it issued 1,853,412 shares of new stock to Starbucks in connection with an agreement to terminate a Channel Development and Marketing Agreement. “In exchange for our issuing these shares, Starbucks has released us from the remaining cash payments and other obligations due under the Marketing Agreement through 2009. Other than some limited rights to use trademarks, Starbucks and we released each other from all remaining obligations under the Marketing Agreement,” XM said in an SEC filing.
At least for now, the Starbucks XM Café remains in the XM channel lineup. However, the companies have ended their marketing pact, dating back to 2004, which had included music promotions in the coffee chain’s stores and CDs sold with the logos of both companies.
