Audible Inc. and XM Satellite Radio Holdings Inc. on Tuesday said they will co-launch a new portable device capable of playing XM's satellite radio service and content from Audible, a seller of downloadable audio versions of books, newspapers and other printed matter.
The handheld devices will be able to receive XM's roughly 150 digital radio channels, as well as store Audible's audio programs from broadcasters and publishers of newspapers, magazine and audio books, all of which can be downloaded from the Internet, the companies said in a joint statement.
The value of the agreement was not disclosed. Audible shares soared $2.51, or more than 15 percent, to $18.84 on the Nasdaq Stock Market, where they were among the top percentage gainers in midday trading. XM Satellite Radio shares added 29 cents to $33.77.
As part of the agreement, the companies said they will co-market the other's services.
XM and Audible will each feature the other company's content on their Web sites, which users can download onto the new devices. For example, Audible said it will offer popular XM talk programs on its Web site this year, starting with The Bob Edwards Show and Opie and Anthony.
Similarly, XM said it will make available Audible's 70,000 hours of spoken-word programming on the XM Web site via a co-branded online store. XM competes with Sirius Satellite Radio Inc. in the fast-growing market for subscription-based satellite radio service.
The new handheld devices will be marketed under the "AudibleReady/XM" name starting next year, the companies said.