Sirius XM Preparing Bankruptcy Papers...

[veritech]

I am about to lose mad cash.....

http://www.nytimes.com/2009/02/11/technology/companies/11radio.html

Sirius XM Satellite Radio has been working with advisers to prepare for a possible bankruptcy filing in a move that could put pressure on the satellite company EchoStar, which owns a substantial amount of the company’s debt.

Sirius XM Radio Inc.Sirius has been working with the restructuring expert Joseph A. Bondi of Alvarez & Marsal and the bankruptcy lawyer Mark Thompson of Simpson, Thatcher & Bartlett to help prepare a Chapter 11 filing, people close to the company said. The documents and analysis are close to being completed and a filing could come within days, according to a person familiar with the matter.

Sirius, whose radio stars include the popular shock jock Howard Stern, has also been working with the investment bank Evercore Partners.

Charles Ergen, who controls a satellite-television empire including the Dish Network Corporation and EchoStar, recently acquired the majority of a $300 million tranche of Sirius debt that matures next Tuesday.

Since the news about the debt purchase has emerged, questions have surfaced over whether Mr. Ergen will make a bid to purchase Sirius. The threat of a possible bankruptcy filing could force Mr. Ergen to make a formal offer for the company now if he doesn’t want to go through an auction in bankruptcy court.

It could also compel Mr. Ergen to agree to convert his debt into an ownership stake in Sirius at a higher price than he originally considered.

 

[bgbtylvr]

sold my shares a year or so ago.

 

[Amajorfucup]

sold my shares a year or so ago.

Smart man. I played around with a few shares before the price went up. I never could have predicted they would fail. Thank god i couldnt afford to invest in anymore of their stock when i wanted to.

 

[DAT DUDE DERE]

oh well it was a good run

 

[TRUFICTION]

WHO KNEW !?

 

[djcasperdotcom]

bankrupt?? i wonder how when they have more commercials that commercial radio.....i mean i thought i was paying 19.95 a month NOT to hear commercials.

 

[ljinsane]

and this is why i didnt sign up for the lock in deal the ywere offering....but fuck i really dont want to listen to regular radio...oh well i'll just have to listen to internet radio in the car

 

[VegasGuy]

Which is why I did not purchase a lifetime subscription these guys at XM/Sirius continually try to sell you when you call em up.

Sirius was already in trouble before it gave a half billion to one damn bullshit comic. Then they purchased the debt of XM.

All this before the Bush recession hit.

-VG

 

[Spectrum]

and this is why i didnt sign up for the lock in deal the ywere offering....but fuck i really dont want to listen to regular radio...oh well i'll just have to listen to internet radio in the car

The service probably won't be ending. What they are probably doing is filing for bankruptcy protection..which will allow them to renegotiate their debt..and then they will emerge from bankruptcy as a healthier company.... though I've always thought it was a bad business in the first place... high overhead... had to take on a lot of debt to launch those services...signed huge contracts for content, etc...

 

[Amajorfucup]

and this is why i didnt sign up for the lock in deal the ywere offering....but fuck i really dont want to listen to regular radio...oh well i'll just have to listen to internet radio in the car

Actually, that "lock in deal" was probably still the best move I remember they were offering something like a $500 lifetime deal at one point (you were only responsible for hardware). Wish i would have jumped on that. The will still be around as a company, this move will just devalue the hell out of them and their stock.

 

[ljinsane]

Actually, that "lock in deal" was probably still the best move I remember they were offering something like a $500 lifetime deal at one point (you were only responsible for hardware). Wish i would have jumped on that. The will still be around as a company, this move will just devalue the hell out of them and their stock.

I was gonna go for the 3 yr joint..its like 300plus..yr lock in joint....ima wait and see what happens in the next week or so...if it looks like they are going to be around...I'll just bit for the 1 or two yr deal

 

[black-n-tan]

If the bankruptcy gambit works and EchoStar converts their debt to equity, the stock price will shoot up because the debt issue will be over. The game MAY be over, but its not over yet.

 

[veritech]

If the bankruptcy gambit works and EchoStar converts their debt to equity, the stock price will shoot up because the debt issue will be over. The game MAY be over, but its not over yet.

this is what i am hoping as i am heavily invested and have taken a beating in the last 18 months.

but with the economy the way it is echostar may just say fuck it and write off the loss. that is what i don't want to happen.

also keep in mind that much of sirius xm's sales/profits come from pre-activated subscriptions in new cars. and we all know that cars are not selling for a number or reasons....

 

[three-fifths]

damn.

does it mean that xm will also go down with the ship?

 

[Streety Blvd.]

Damn, I'm gonna miss Angela Yee .....i like dat lil' spunky bitch

 

[SAFOOL]

Just about a year year and a half ago I argued with a lot of cats here about Satellite radio not being a sure thing. Folks kept popping off about how radio was dead and XM/sirius was taking over.

 

[Johnny Mack]

Noooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo!!!!!!!!!!!!!!!!1

 

[Real1]

That'll be a blow to the Washington, DC economy.

 

[J Storm]

I knew that shit would eventually fail.
With hard comes comes survival Tactics.
People still want to hear their music but who has money to pay for it?

Sales of MP3 players went up. You do the math.


But seriously reflect. Do you remember there was a time when we didn't pay for TV or RADIO? With the Internet, not only can we get TV for free again but Radio and a whole lot of other shit.

WWW = 666

 

[Brother Blues]

Who in their right mind would give Stern that kinda money???...fuck em.

 

[magnetic god]

stern brought in millions of new subscribers..I'm listening to them(stern) talk about the possible bankruptcy right now, not sounding too good..

 

[NightMare Paint]

bankrupt?? i wonder how when they have more commercials that commercial radio.....i mean i thought i was paying 19.95 a month NOT to hear commercials.

You hate Steven Singer too huh

him & Ashley Madison can go to hell

 

[Warrior 7]

Howard Stern is a racist bitch
I hope anything he does fails

 

[NastyNati]

The service is not going away, like others here I'll lose some money on my stock but that's the way the market is.

What may happen in the end tho is mass channel mashing between the two sets of XM and Sirius stations. A rush to a standard radio for both XM and Sirius.

 

[tg1lmore]

Damn

I actually like XM... haven't listened to regular radio in like two years.

 

[three-fifths]

Howard Stern is a racist bitch
I hope anything he does fails

co-fuckin' goddamned sign!

 

[bellsbreaker]

here is the wash.... sirus will be profitable in 3 years if they get rid of karamzin...

sirus has 8million suscribers...
another 20 million unsubscribed units in cars that arent willing to pay the high price point...

they need to lower the suscription and get thos other 20million signed up...

that would be almost 30million subscribers...

 

[Heist]

Left XM 2 years ago. Diluted my position. Great company, great people. An idea that's way maybe 5 years too late. I can go into the details, but I'll save it for my book.

 

[EATUGOOD1]

i'll miss Howard Stern

 

[gene cisco]

I like to drive and listen to talk radio, got sirius years back. Fucks had commercials and I dropped it after a few months.

I got commercial free music on mp3's.

 

[Studio718]

XM, when HD radio is free?

 

[DjLouieVega1]

I am in my car for about 7 hours a day. I live on Sirius/XM
huge Stern fan...hes the reason why me and 6 million other people signed up. IF hes so racist why are Chris Rock T-Pain, TI, Earthquake, Tracey Morgan (the best guest ever!) on their constantly. Foxxhole is good as well.
I could never go back to listening to "Ice Pick and Mudhole in the morning" on whatever HOT or MAGIC FM stations are out there

 

[J Storm]

Howard Stern is a racist bitch
I hope anything he does fails

You know when you wish things like that on other people, it actually reflects a perception of your own personal life?

 

[black-n-tan]

here is the wash.... sirus will be profitable in 3 years if they get rid of karamzin...

sirus has 8million suscribers...
another 20 million unsubscribed units in cars that arent willing to pay the high price point...

they need to lower the suscription and get thos other 20million signed up...

that would be almost 30million subscribers...

Is Karmazin really the problem? What about the year and a half these highly leveraged companies had to wait for approval to merge? If this deal were approved in a timely fashion, the loan markets would not have dried up yet and they would have had a much better chance of refinancing. The terrestrial radio lobbyists may have done their job of bankrupting SiriusXM but that won't shut down the company.

 

[bellsbreaker]

sirus would be a good buy for at&t...

yes, karamizin is the problem... he paid howard stern too much because they are boys... he wont monetize the outstanding 20million unsubscribed units... they are setting the price point too high for the average consumer...

remember karamizin is old school viacom fool... he is al about locking up his market share. what he doesnt understand is that number of subscribers is way more important at this point that gross revenue...

the more subscribers... the better chance of courting a buyer or finacning... revenue is good, but in the media market... number of listeners is king.