HLTH Corp. (HLTH) and WebMD (WBMD) today terminated their merger agreement–the latest casualty of the current credit crunch.

HLTH owns an 84 percent stake in WebMD; but WebMD was to be the surviving company. Terms of the deal had called for HLTH shares to be converted into 0.1979 shares of WBMD plus $6.89 in cash.

Martin Wygod, chairman of both companies, said in a statement that “in the current economic environment, it is important for a growth company like WebMD not to be encumbered by $650 million in long-term debt that would be coming due in 18 to 36 months.”

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Sirius XM (SIRI) shares are down sharply again this morning, one day after the company provided updated guidance that disappointed the Street.

The company’s new guidance, in case you missed it:

Subscribers: 19.5 million at year-end 2008, 21.5 million at year-end 2009.
Revenue: $2.4 billion in 2008, $2.7 billion in 2009.
Adjusted EBITDA: Loss of $350 million 2008, with positive $300 million in 2009.
Synergies from the merger with XM: $425 million in 2009.

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The Wall Street Journal whipped up a speculative frenzy yesterday with a story that said Dish Network (DISH) CEO Charlie Ergun was thinking about making a new attempt to merge his company with DirecTV (DTV), potentially creating a monopoly in satellite television services.

This idea has cropped up repeatedly in the last year, on the theory that government approval for the merger of Sirius (SIRI) with XM could signal a new willingness on the part of regulators to re-consider their rejection of a DISH/DTV merger in 2002.

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Sirius (SIRI) and XM (XMSR) this morning completed their merger, at long last. Terms of the deal called for XM holders to get 4.6 SIRI shares for each share of XMSR.

But are investors are celebrating? No, they are not. Instead, they are in a selling frenzy. SIRI shares, in fact, are down 32 cents, or 17 percent, to $1.56, and have now now dropped 42 percent in the last four trading days.

Sirius this morning repeated its previous forecast that the company expects to generate $400 million in synergies in 2009. It expects to post adjusted EBITDA of more than $300 million in 2009, and to reach positive free cash flow–before satellite expenditures–for the full year in 2009.

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As you know by now, the FCC on Friday at long last approved the pending merger of XM Satellite Radio (XMSR) and Sirius Satellite Radio (SIRI). That should clear the way for the completion of the merger.

There were some other steps related to closing the merger unveiled this morning. XM announced an offering of $550 million of exchangeable senior subordinated notes due 2014; the notes will be exchangeable for Sirius shares. The offering is one in a series of transactions to refinance some XM debt in connection with the pending merger.

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The great satellite radio merger inches ever closer.

This morning, XM Satellite Radio (XMSR) announced a $400-million offering of senior notes, which it said is “part of a series of transactions to refinance certain debt,” in connection with its pending merger with Sirius Satellite Radio (SIRI). The company said the deal was structured in a way that would allow it to be unwound if the merger is not completed. The deal still awaits final approval from the FCC.

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Sirius Satellite Radio (SIRI) provided 2009 financial guidance for the company that assumes the company completes its pending merger with XM Sirius Radio (XMSR).

Sirius said total synergies, net of costs, in 2009 should be about $400 million. Adjusted EBITDA for the company is expected to be about $300 million. The combined company is expected to be free cash-flow positive before satellite cap ex for the full year 2009.

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After years of rumors, it finally happened. On Friday, Microsoft made its buyout offer for Yahoo. But while that was expected to happen, as both companies have had trouble catching online advertising juggernaut Google, what wasn’t so expected was that Microsoft CEO Steve Ballmer would go all Murdoch on Yahoo with a hostile bid at a 62% premium over Yahoo’s stock price. But unlike Rupert Murdoch’s hostile bid for Dow Jones, Ballmer doesn’t have to contend with family ownership or strange stock structures.

It’s easy to get wrapped up in the BIGGEST BUYOUT IN INTERNET HISTORY and only consider the business aspects, the antitrust problems, the privacy concerns, Google’s crocodile tears over Microsoft’s unchecked power, and so on. But what about the people who use Yahoo’s various online services, or for that matter, Microsoft’s? What will happen to them in a merger, and how might their experience change?

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