Wednesday, February 11, 2009
Sirius XM In Serious Trouble
We've noted before some of the stupid antics of Sirius XM satellite radio company, especially the wild success claims from the Sirius side before the merger. New York Times is reporting that the satellite radio company is now preparing to seek Chapter 11 protection over the next few days. Whilst this doesn't mean the end, it certainly heralds a reality check. The paper says that Sirius XM has been working with a restructuring specialists on strategies for dealing with $1 billion in debt repayments due this year. It comes as media mogul Charlie Ergen has been buying up shares, fueling speculation of a hostile takeover attempt. Frankly, with all the other options for entertainment in the car, pay radio looks the most vulnerable when times are tough. Pride comes before a huge fall.