The end for Sirius?

[SLCRagu]

Does anyone else follow this stock or it's business, it's trading at $0.42 and is loaded with debt(1.3bill) it has to refinance which isn't easy to do right now especially since all they do is lose money, and forget about outside investment. Oh yeah GM and Ford won't be selling any new cars next year as well, which doesn't help. If the credit markets don't open up toot sweet, I say bankruptcy by February when 300mill is owed, maybe before then and dissolution by spring. At least congress and the FCC didn't waist alot of time on this disaster or anything.:flush:

[furie]

with a merger, wouldn't this bring XM down too?

[Hottub]

They are one, now. sirixm.

[SLCRagu]

Update: SiriusXM down 7% to $0.39 on a day the market rallies 400 points. Customer service is bracing for a tsunami of calls concerning subs in event of a bankruptcy filing.

[K.C.]

They are one, now. sirixm.

All the merger basically means, is they're going down together.

This company is screwed.

Hope R&F got their piece of the money hemmorage that was going on during the days back when they signed with XM.

[scottinnj]

It's a real shame.

Satellite Radio is the best thing to come along in entertainment for a long, long time.
Everything else is just FCC-overregulated trype.

[K.C.]

It's a real shame.

Satellite Radio is the best thing to come along in entertainment for a long, long time.
Everything else is just FCC-overregulated trype.

The problem is it came along to late.

First, there only should have been one satellite radio company from the beginning. The monopoly explanation on that was a joke. Satelitte and Terrestrial are competitors.

Second, satellite radio, to ever have a real shot, should have been a viable consumer product back around 1999-2000.

As soon as iPod mania hit like a tidal wave, the writing was on the wall.



People around SiriusXM, when it does finally officially fail, will blame the FCC hold up of the merger, to save face, but the truth is that Satellite, which didn't REALLY become commercially viable until '03-'04ish, was dead before it ever started.


It never had a chance.


And the way each company completely bled money to talent and programming only snowballed the failure.


It'll be around in some format in the future. There's too much appeal with all the sports programming, commercial free music, that someone will take a chance on investing heavily in it, to turn it around.

But it'll be a long transition, and they'll have to restructure everything.

[Dougie Brootal]

i knew this was a bad idea

[Chigworthy]

Who remembers cable radio? It was the best.

[SLCRagu]

The problem is it came along to late.
People around SiriusXM, when it does finally officially fail, will blame the FCC hold up of the merger, to save face, but the truth is that Satellite, which didn't REALLY become commercially viable until '03-'04ish, was dead before it ever started.

I agree but it was pretty shitty of the FCC to tie this thing up until just before a huge debt repayment was due, it really made it impossible for them generate any cash.
It looks like one of the mega-conglomerates like Clearchannel or Viacom will scoop them up on the cheap once there knee deep in chapter 11 restructuring. This thing will be completely gutted by then, no more exclusive Oprah or Howard contracts, just music and sports.

[K.C.]

I agree but it was pretty shitty of the FCC to tie this thing up until just before a huge debt repayment was due, it really made it impossible for them generate any cash.
It looks like one of the mega-conglomerates like Clearchannel or Viacom will scoop them up on the cheap once there knee deep in chapter 11 restructuring. This thing will be completely gutted by then, no more exclusive Oprah or Howard contracts, just music and sports.

I don't know if it'll be Clearchannel or Viacom, although it definitely makes sense.

They'll definitely file bankruptcy, and re-issue the stock (which means anyone actually still owns shares, they're going to be worthless soon enough...might as well take the 37 cents a share while you can get it).


But I can't really think of another company that would really be interested in getting in that business.

Even after restructuring, it's still a high risk business, which will require a huge amount of resources.

[SLCRagu]

This couldn't have happened at a worse time for them. No private equity, hedge fund or foreign investor will put a dime into them now. I think a major media corp might take a chance once all the debt is cleared out and contracts are renegotiated, only to unlock some value in it's satellite's and real estate or maybe retain the brand and licences.

I never understood this business model from the start, then to stake your fate on GM and Ford will go down as one of the greatest clusterfuck's of all time.