XM-Sirius Radio Going Bankrupt...

[KharmaTrain]

http://www.thestreet.com/story/10463175/1/sirius-xm-prepping-for-bankruptcy-report.html?cm_ven=GOOGLEFI

Sirius XM (SIRI Quote - Cramer on SIRI - Stock Picks) may file for Chapter 11 bankruptcy protection "within days," according to a published report late Tuesday, as the satellite radio company continues to grapple with outstanding debt.

According to a report in The New York Times, Sirius XM has been working with the restructuring expert Joseph Bondi of Alvarez & Marsal and the bankruptcy lawyer Mark Thompson of Simpson Thatcher & Bartlett to help prepare a Chapter 11 filing. The report cited people close to the company, who said documents and analysis are close to being completed and a filing could come within days.
After gaining 3.6% during Tuesday's down session, shares of Sirius XM were lower by 2% after hours to 11 cents a share.

The Times report comes one week before a chunk of Sirius XM's maturing debt will come due. Sirius XM reduced its total debt due on Feb. 17 to about $175 million, but the future is a bit unclear. The company still has approximately $3.4 billion in debt, with just under $1 billion due before the end of the year, and its stock has fallen sharply since the July merger between Sirius Satellite Radio and XM Satellite Radio.

Their stock isn't worth the paper its printed on. They merged only 8 months ago...I gave 'em a year until this, I was an optimist.

These days when you go into Chapter 11, there's no guarantee you'll come out.

Discuss...

[Kittycat]

1. Crap - I love my XM :(

What will become of it.

[rainy]

19. Me too. nt

[tbyg52]

45. It's the only way I can get C-Span and Air America! Waaaaaah! nt

[KoKo]

74. Same here...and I & others, put out money to buy it and subscribe....what next?

:shrug: Obama Wins and Progressive Radio dies unless you can be wired to your computer all day or just love to take that time to do "I-Pod/MP3 Downloads." Not all of us are into all of that fuss.

sigh...

[MrPerson]

2. Does this mean I can't listen to Spa anymore?

Damn. Jesus tits.

[kwassa]

91. spa clean this!

:puke::puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke:

[Mayberry Machiavelli]

3. So are there just not enough subscribers? Or did they do stupid things by paying

people like Howard Stern hundreds of millions?

[ferrous wheel]

5. All the above. People aren't willing to pay money to listen to FM radio

when there's so much of it free. I knew the idea would flop when they came up with it.

[alarimer]

8. They would if they could hear it first.

FM radio sucks so much; it is really, really nice not to have ads interrupting the music. And they can play all kinds of stuff that never makes it onto the crap that is FM radio. I am really depressed thinking about this. I will NEVER, EVER listen to regular radio again.

I cannot emphasize enough that the free stuff is so atrocious that people would pay for better, if they only tried it first.

[TornadoTN]

13. FM Radio is atrocious, but Satellite is just about as bad now

After the merger, they started gutting channels that were really popular and discarding a lot of what people really liked. Then they thought it would be a great idea to get DJ's to talk at the beginning and end of each song and ramble on relentlessly. Sirius XMU and Alt Nation come to mind - they are horrid and almost unlistenable, whereas before they were great and what got me hooked on satellite.

I've seen some studies on the internet where people compared the song play on sat. and the song play on terrestrial. Before the merger it wasn't even comparable - now they are almost exactly the same and in some cases, sat is even worse.


MP3 Player all the way for me now.

[rollingrock]

92. There's tons of free radio stations on the internet too, nt.

[alarimer]

103. That's not an option for vehicles, though.

There are several that I like. And there is always Pandora.

[ferrous wheel]

18. I had it for 4 months...decided it wasn't worth any money.

sorry

[JSK]

55. It's very cool on road trips

I live in CA and we travel fairly often through the central valley. XM has preserved my sanity, or what's left of it.

[rufus dog]

67. you wimp

You don't want to scan the dial for stations that play Rush, Sean or Bill? It always make me look forward to find a station playing Buck Owens.

[ferrous wheel]

68. I don't do road trips so what little time I used it in the car was a waste of $

It doesn't work in a plane. I mean it works electronically but not in competition with radio communication. :D

[donco6]

49. I love my new Sirius radio

I got it with my new Ford. I love the gay channel, and Sirius left is OK - could be better. Really like BBC1

[JerseygirlCT]

64. Regular radio really reeks now

What passes for FM is more like what used to be AM when I was growing up - very limited play list, lots of commercials.

At least with satellite, you can choose what type of music you want, and you don't have to listen to BS all day long for most of your listening time.

[AndrewP]

89. Yep. It is such an improvement over FM or AM.

I can't imagine having to go back.

I hope this works out somehow. XM has brought about a big improvement in my entertainment over the past year.

[TornadoTN]

10. It's not so much that as it is they went about it all wrong

They grew way too fast for one and the growth meant making sacrifices with content. That pissed off a lot of the early adopters and then Sirius went and hired Stern and effectively committed suicide on the hope that he would bring in enough people.

If it had stayed a pure music/talk programming format with no commercials (as originally attended) and developed their own talent, I think they could have been very successful.

[KoKo]

75. The merger between the two cost so much they have HUGE DEBT...maybe

neither could have survived on their own or the weaker one could have gone down leaving the stronger to survive. But the owners got greedy to "cash out" just before the latest greed implosion and now the whole thing is struggling because of the debt of the merger.

One more calamity of the latest M&A last gasp of greed.

Now what do we do for Progressive Radio...? Oh...yeah...The Internets. Keep wired in...

[Atman]

85. That's bullshit. If I could find a free station that played the music XM did, I'd quit

Come fucking on! I even live close enough to a metro area to be able to get "good" FM and it's all totally unlistenable crap. Crap full of non-stop commercials, with ten minutes of music intertwined. XM/Sirius (I have both, even though they're the same...my biggest gripe for now) actually play MUSIC, and lots of it, commercial-free. A variety of music, music I like. You people saying XM is just FM-for-pay are fucking looney. I don't believe you actually have satellite radio. I'd be very, very sad if XM/Sirius went off the air. Or space. Wherever they are.

It's too bad they wasted their money on that lame-ass Stern. I never, ever listen to his TWO channels.

What a shame. What a shame.

.

[KharmaTrain]

15. Want A Laundry List...It's Been A Money Pit...

It began 10 years ago with overspending on elaborate studios and full time staff even before they had a satellite launched. Then wasting money on the satellites, the initial roll out and then throwing lots of money at almost anyone with a popular name...the Oprah Channel...so on.

IRC, a good chunk of Stern's deal was in company stock...and IMHO, he was one of the positive moves they made. He actually brought new listeners to the medium for a short while. But the debt was eyeball deep long before he arrived.

The rub here will be finding anyone who would want to take on this albatross. Some, I'm sure will be salvaged, but the days when people trumpted satellite as the radio of the future is over. About 4 years ago, I had someone at a reputable investment house trying to talk me into buying Sirius stock. I knew about the debt at the time and informed them. They looked like I was making it up...kept telling me what a great long term investment it would be. I guess that's the case if I needed new wallpaper.

Cheers...

[TornadoTN]

25. Sterns contract was incentive heavy, but he had to deliver subscribers

He did for a short time, but the novelty wore off when his show just got worse rather than better and he was rarely in studio because of his contractual "off time".

The bet that he would bring enough people in that would remain subscribers while recruiting an insane number of people each year to add to that total - it was a contract in perputuity and an unsustainable model that was destined for failure.

I don't mean to rag on Satellite - I loved it for years - but the way they've managed the company and their boneheaded decisions sealed their fate.

[KharmaTrain]

27. You're Spot On...

The problem with satellite from the start was the turnover...also the quality of the radios. I had a friend who went through at least 3 radios in one year and was constantly complaining about channels not being available.

Remember, for a long time these companies lived off of inflated stock prices...it was purposely detached from both subscriptions and revenues...they'd give "projections" that would only be "adjusted" long after anyone was noticing.

I see whatever future satellite has will be as a repeater of terrestrial stations...but the dreams of big money are gone. It'll be interesting to see if Stern is welcomed back to "conventional radio" or his "svenghalli" Mel Karamzin who was the head of the company.

[TornadoTN]

30. I look for Clear Channel and others to make a play for them

They'd be crazy not to at this point because the technology and infrastructure is in place.

Satellite as it was when they first launched was a great idea and a concept that could have worked. No commercials and just pure music? Sign me up! But what they have now is far from that promise. The rumor has it that they are planning on selling commercial space on music channels once the bankruptcy is in place, but I highly doubt that there will be anyone left to listen to them.

[KharmaTrain]

38. No Tengo Dinero...

While President Obama was being sworn in...10% of Cheap Channel's staff was let go and more cuts are on the way. It's hard to know the exact financial health of the company as they went private when Bain Capital (a division of the Carlyle Group) bought them last year, but they've been tight on the spending since they took over.

IRC, CC already has a share in the company, but they'd need government authorization to purchase what's left of XM-Sirius outright. I foresee them just being another outlet for Kiss and Rushbo and Jack FM...commercials and all. Hell, you get commercials on cable and you pay for that, don't you? Again, this is the mindset that drove this company into the mess its in in the first place.

[soothsayer]

41. no, they got screwed by the fcc holding up the merger due to heavy lobbying by terrestrial radio

It was done to bankrupt them.

[TornadoTN]

4. Two years ago I would have been sad, nowadays, not so much

They've gutted their entire format and their music selection is awful anymore. It's more commercial than commercial radio now that they have DJ's that talk non-stop.

I feel sorry for most of the common people that are going to get a raw deal out of this, but people like Stern and others are just a giant albatross around that companies neck. My subscription is up at the end of the month and I won't be going back. MP3 player for me.

[Medusa]

84. I love Sat Radio and have it in my home, my office, my car.

I don't think I can ever go back to regular radio.

[alarimer]

6. Crap. I HATE terrestrial radio

It all fucking sucks. I LOVE satellite and really hope it lasts.

[bamademo]

7. What's going to happen to my 200 shares of stock?

[MajPayne2]

51. Fuck

I have 500 shares of this bullshit stock.

[Brooklyns_Finest]

9. My worst nightmare

I fucking hate regular radio and not a big fan of mp3 music. What will I do without Shade 45? I really love my SIRIUS radio. I have had it in my car since 2003 and would gladly pay double the cost to keep it. I am white collar guy, but I can guarantee you that my truck driver brothers feel the same way.

PLEASE PRESIDENT OBAMA BAILOUT SATALITE RADIO!!!!!!!!!!!!!!!!

[lanlady]

11. Maybe if they didn't pay Stern a gazillion $$$$$

and focused on producing quality radio, this could have been avoided.

I didn't renew my Sirius subscription; it was the same tired songs day after day, week after week. Yawn.

[soothsayer]

43. i love howard's show. i hope they pull thru this.

[KharmaTrain]

53. Stern's Deal Was A Lot Of Stock...

Which now is worth less than the paper its printed on. Sirius and XM were in financial messes long before Stern came along...it was a play to snooker more investors to buy in on this ponzi scheme.

Stern was probably one of the few bright spots in satellite radio history...he actually did bring some new subscribers, but it didn't last.

Quality radio involves hiring and giving control to creative people...corporate radio has no tolerance for creative.

[Last Stand]

12. Stern had some corporate lawyer on who dispelled this rumor.

Some very complicated explanation. I didn't understand it, but they owe money that they probably have and there is a power play going on to some extent. Didn't seem like there was going to be any real bad news.

Whew...I'm on the Lifetime plan.

[TornadoTN]

16. I question his sources to be honest

Almost every analyst in the financial world (yes, they have no credibility - but I digress) is saying that satellite radio is a losing proposition and will most likely be extinct or close to it by the end of the year. Sirius has some MAJOR debts and the Stern contract itself has strangled them since it turned out that he wasn't enough to raise subscription numbers enough to pay for it. Couple that with the financial crisis and the widespread discontent from the customers due to content and price increases, and I suspect we'll see them in far worse shape than bankruptcy.

[Last Stand]

54. Some valid points...

but don't forget that MSM has been trying to bury Satellite as a failure since its inception. They don't control its message.

I hope this is more of the same. NO ONE had more Anti-Bush air time to more people than Stern in 2004. MSM knows he's not a player.

[NRaleighLiberal]

14. As a music lover, here's why I never went for Sat. radio - cost!

When I can load nearly my entire CD collection onto my iPod and take it anywhere, or stream great stations like Radio Paradise on my laptop - and can get a news fix in the car on NPR or AAR....why pay?

[Initech]

17. I pay $110 for the full year.

This includes XM NavTraffic, which has saved my ass on numerous occasions. Well worth the price if you ask me!

[KharmaTrain]

24. I Never Had One Either...

I've had virtually every other radio made...including AM Stereo and even a HD Radio (another albatross)...but never had the interest in satellite. A major reason was I didn't and still don't believe in paying for something that was always available and that there wasn't much they were offering that I didn't have in my own collection.

However, I do know some sports junkies...they live with their radios. Also long haul drivers were big customers. In big cities, they always had problems with reception in any congested area like a downtown and people prefered listening to a local station over a satellite one.

There's so much to enjoy on the Internet...IMHO the future of radio...especially when the new Wi-Fi systems start going online and you'll be able to listen in cars and on IPODs and other portable devices.

Cheers...

[Tesha]

97. The time for satellite radio has come and gone as the Internet becomes pervasive.

Nowadays, I can get quite a few "radio" stations of all sorts streamed over
the Internet to my iPhone. If I'm near a WiFi, they come via that. If I'm not
near a WiFi, the come via my 3G data plan.

Why would I need a satellite receiver and a satellite radio subscription?

Tesha

[maseman]

83. For me XM and Sirius

is not about the music but the info. I travel a lot so I can get Left Talk 167 in addition to BBC news, XM Public Radio, NPR, C-Span, and of course MLB radio.

[madinmaryland]

20. I'm sorry, but I just can't pay for car radio. Actually I listen to very little

of anything, whether it be in the car or not.

:shrug:

[Initech]

21. I do love my XM.

It would be a damn shame if they went under with no one to rescue it.

[RobinA]

72. Love It Too

Hadn't listened to radio in decades. Was given satellite as a gift because I had been talking about trying it. I LOVE it. I take it everywhere, whatever music I'm in the mood for, there it is.

[Initech]

94. I have it in my car. It's great on long road trips.

[sfpcjock]

22. Wow. Thanks, Buschmucks for stealing the furniture

...on your way out the door.

Of course, if you are a http://en.wikipedia.org/wiki/Public_corporation">"public company" you just declare bankruptcy or threatent to and then liquidate the stockholders and pay any of the creditors you feel in the mood to pay after the bankruptcy; folly the rest and then you are "restructured": lovely the corporate life, ain't it?

[Taverner]

23. Shit - that sucks!

[MrPerson]

34. Like a friggin Dyson

[Taverner]

36. I love my Sat Radio - there's no way I could go back to terrestrial!

All those friggen commercials, all that crappy music

Of course - I am getting the feeling we are headed for a worldwide Third world existence, where we take whatever we can get.

[MrPerson]

39. I volunteer to run errands just so I can listen in my car to XM

[Taverner]

50. Me too!!!!

[madville]

26. Ipods/MP3 players are killing satellite radio also

Why pay when I can create my own playlist to listen to in the car.

Plus people are driving less, don't listen to the car radio as much.

[KharmaTrain]

29. There's Always An Audience For Well Programmed Radio

It takes an effort for us old farts to make a playlist...some of us just like to crank on the radio and let the station do the picking. Or at least that's how it once was.

These days I enjoy silence in the car...no radio, cellphone...just thoughts and scenary.

Cheers...

[TornadoTN]

33. Exactly - I like a well programmed playlists

Well programmed play lists on genre specific channels is a godsend - along with little to no DJ interference. Just music. But Sirius jumped the shark and started sounding like every Top40/Clear Channel station around the country.

I used to listen to satellite and write down tracks or artists that I liked so I could download them to my MP3 player. Now I'm better off surfing ITunes/Zune/LastFM/Slacker because the content is so much better.

[KharmaTrain]

40. Shameless Self Promotion...

I've been working with a group of very talented and experienced radio pros...mixing the best of the old with the latest technology. It's been very liberating as we're all doing things that we've always wanted to do and now have a platform to do it. I'm from the old Progressive rock school of the 70's...where the music was creatively programmed and mixed, it's incredible what one can program these days. I have a library of over 10,000 tunes...all accessible with a couple keystrokes...no longer scrambling to find the vinyl or the CD. While some people think radio's best days are done, I see a new era just around the corner.

[TornadoTN]

47. Very Cool! Keep me posted on what you do

I'm a lover of music of all types - primarily in the Rock/Alt/Grunge genre's, but with love for classic rock/classical. I'd love to be kept up to speed with what you are doing and check it out if you ever need an outsiders opinion or just want some feedback!

[Gabi Hayes]

105. were you in Chicago in the 60s-70s? WVVX, when it was the cutting edge

station in Chicago

Fourth Tower of Inverness, anyone?

heard about Gravity's Rainbow for the first time on one of their shows

saw Mahavishnu Orch at Quiet Knight because of them (then JM solo at the Old Town Buddhist Monastery)

those were the days

[Lady Effingbroke]

58. I had a car with no radio for several years.

Now that I have a car with a semi-functioning radio, I forget it's there.

Ahhh, blissful silence...

[katanalori]

31. oh sh*t!

just spent my life savings to get my husband a magnum dynalab xm radio for Christmas.
I don't even want to say how expensive it was.
We LOVE XM radio - this sucks.

[Mayberry Machiavelli]

28. Once cars are equipped with wireless internet (3G etc.) and you can listen to

custom stations like Pandora or Slacker in your car, non-internet radio will be well and truly dead.

Already you can plug in a smartphone into the line-in jack in your car, if you have one, and listen to those services.

[KharmaTrain]

32. Internet Radio Is About To Come Of Age...

I started working with the prototypes of internet streaming back in the mid 90's...it's come a looooooooooong way and still getting better. The new generation AACPlus codecs give CD plus quality sound that surpasses anything FM or Satellite deliver. The neat part is how interactive it is. Besides having it tied to a webpage or community, you will be able to download the song you're listening to or get coupons right out of the radio. There's a lot of neat things on the way.

[eilen]

71. I have a Grace internet radio at home I listen to

I love it.

[Wiley50]

78. `I live on a boat and use a Verizon USB modem in my laptop

I take it with me in the car too and just take a pair of powered speakers

run both of them from a 300 watt inverter with a double plug

I get really good broadband speeds from it too

It's my only ISP

[TornadoTN]

35. I run Slacker on my Blackberry Storm - love it

Actually paid for the premium service it's such a good deal. There are some minor issues that will need to be sorted out in time, but I can very well see this as the future of radio.

[Just Visiting]

37. Relax- for a while, anyway

Echostar (Dish TV) is looking to buy a huge portion of the Sirius/XM debt.

No one is really sure exactly why - speculation is all over the place as to whether they just want the bandwidth or if they want the service to prop up ($$$ wise) Dish, which is bleeding money.

Sat radio will die a natural death fairly soon, but the bankruptcy filings are not unexpected, predicated on the takeover scenario.

[KharmaTrain]

46. This Is Like A Snowball...

Is Echostar owned by Murdoch?

So, letmee get this straight. Dish, that is having plenty of financial troubles of its own wants to assume this debt bomb? Sounds like the similar talk I heard a year ago about XM and Sirius merging and how that'd make it into one stronger company. I laughed at the time...saying all it did was enlarged the overall debt.

The big question is even if someone wanted to swoop in, it'd have to be someone with a bunch of cash cause there's no funding or financing around...and anyone who'd gamble on this albatross is a fool.

Cheers...

[tbyg52]

56. Weeeeell, I gues I shouldn't extend our car subscriptions right now....

Funny thing is, I just got an email that said something like "quick, renew before the rates go up!"

Sorta like when you see a commercial for a big corporation on the talking head shows - you know the corporation is at least unpopular and probably just did something monumentally stupid.

[Just Visiting]

60. The rates are going up for on-line content, I think

If they go after the conventional listeners they might as well just lock the doors and turn the lights off.

[tbyg52]

65. I don't remember the details about what and how much they planned on increasing

But I'm concerned about giving them a year or more worth of money that might go poof much like my IRA.... ;)

[Just Visiting]

59. No - Charles Ergen is the CEO and Chairman

Primary stock holder also, I think.

I'm with you - haven't a clue as to why this is being thought about.

Some folks say that Echostar wants the repeaters and the "ownership" of the area that comes with them in order to work out a new broadband thing, if that makes any sense.

[KharmaTrain]

61. Broadband?

I'll have to look around to see what that's about.

The digital TV delay is creating a mess with Internet Radio as many of the new Wide area Wi Fi systems are supposed to operate on frequencies vacated by the upper TV channels.

The repeaters, I assume, are the local transmitters that cover the holes inside major cities that satellite radio couldn't cover. Many of those are prime real estate...probably similar to what a company called American Radio Systems that at one time owned stations...sold the licenses but kept the towers and leased them not only to their former station but to cellphones, business repeaters and low power TV.

Sounds like the canabalizing is under way.

[ProudToBeBlueInRhody]

42. That's a shame

Stern was really what caused me to make the move to get it, so I think he was in a sense a good thing. You need names to draw subscribers. I would keep it even if he went off, because for 14 bucks a month, the music they have is worth it. I love listening to Lithium and Chill, and it's the only place we can get liberal talk radio, because you can't find it here.

The problem was there was no need for that merger to be held up as long as it was by the FCC. It was basically an attempt by the assholes running terrestrial radio (right wingers) to strangle it, and they managed to do it. Pieces of shit. Now we can hear more Fat Druggie Rush and Kid Diddler Hannity.

[Tesha]

98. That's funny -- Stern is the reason I decided I'd *NEVER* give my money to Sat Radio. (NT)

[Hoopla Phil]

44. But what will Howard Stern do?

[ProudToBeBlueInRhody]

52. Retire to the Hamptons with his millions and his hot model wife

Howie got his "fuck you" money on this deal.

[Batgirl]

48. My daily hour and a half commute will be even shittier without Bluesville.

[sam sarrha]

57. i dropped them for their F'n poor signal.. doesnt even work now

[BlooInBloo]

62. (shrug) An obsolete medium. May as well be concerned about the Pony Express going under.

[JerseygirlCT]

63. Great. Just installed that stinker in my car...

Though OTOH, I'm not surprised if their customer service is any indicator of how they run their business. They suck at it.

[exboyfil]

66. I inherited my Dad's XM radio when he passed away

and I listen to it constantly when I go to bed (just like my dad). He left me with nearly two years on the contract. We just bought a new car, and it has XM in it as well. I am enjoying the free access right now.

I do think that once dollars are involved I will drop both. I prefer to listen to audiobooks, and my little MP3 player gets me by.

[8 track mind]

69. I love XM

I mostly listen to deep tracks on xm40. That channel has opened my eyes to so many obscure bands that made some really great music.


Why is it so damn impossible to run a sucsessful business?

[RobinA]

73. Or....

Why does everything that doesn't suck go away?

[8 track mind]

80. exactly! n/t

[Tesha]

100. Because Americans value "cheap" over "good"? They certainly prove it over and over again. (NT)

[zbdent]

70. Didn't Murdoch invest heavily into this?

[Rosco T.]

87. no (please don't start that red herring again!) n/m

[Political Heretic]

76. I'm sort of suprised Satellite Radio was just a fad. I thought it would be solid.

But, I guess there's just not that much good programming out there.

[L0oniX]

77. So does this mean my sat tv bill will go down? NO! Asscarrots are everywhere.

[Sebastian Doyle]

79. Figures..... now that they finally got the lineup straightened out on "America Left".

..well, except for the ridiculous delay of Thom Hartmann's show. But at least you get to hear all three hours of all the shows now, and everyone else is live.

I was going to re-activate my subscription once I got some other bills paid off. Now they might be gone by that time.

[fujiyama]

81. Sirius was great when I drove across the country

Uninterrupted music, news, weather everywhere I went. I know some of the places I drove through would have offered little other than RW talk radio or radio preachers.

[pinniped]

82. FM radio does suck. You are forced to navigate around numerous Comcrap and Geico commercials.

It's already bad enough to see/hear that shit on TV.

[littlebit]

86. I hope they stick around.

I have been a Sirius subscriber since the beginning. I don't think I could go back to having to listen to regular FM radio all day. That would make for one long boring day in the big truck.

[southerncrone]

88. %)%#@$&#*) !!!! I don't subscribe directly, but get some of the stations over DishTV.

I really love The Bridge & The Vault. You just can't hear that music anywhere else. :cry:

[Maestro]

90. I love my Sirius

I hope they find a way to restructure their debt! I hate corp radio with those effin' commercials.

[kwassa]

93. XM for four years, still love it. Great everyday on my commute.

[Statistical]

95. My guess is the BK filing is a way to force Echostars hand.

Echostar wants SIRI. They made an unsolicited bid in Dec (price unknown) and SIRI rejected it.

Since then Echostar has accumulated about 15% of SIRI debt.
The debt is convertible notes which can be changed into stock.

Echostar game likely was to let the stock price drop from the $0.12 it has been for last couple months to $0.02 range and then make a hostile takeover attempt.

Converting the notes into stock would give them about 25% of the company. Convince another 25% of shareholders that Echostar is a better owner/manager and Ergen (CEO of Echostar) forces the board/management out and gains control.

SIRI sees the writing on the wall. By filing for BK they force Echostar to move earlier and any takeover price will be higher.

Echostar doesn't want BK process. If company goes into liquidation Echostar has no control over the process. They likely will only get cents on the $ for the debt they purchased.

It will be interesting to see if Echostar makes a move now.

[KharmaTrain]

96. The Timing Is Quite Interesting...

I've been trying to get up to speed on what's happened here since a buddy sent me this news yesterday afternoon.

The question is what is Dish looking to do with XM-Sirius...operate it or canibalize it? Either way, it will be interesting to see if this move does force their hand...see if they try to bail out or double down before Chapter 11 is filed.

[Mike 03]

99. Ooops, sorry. I didn't see this post in GD when I posted mine.

My bad.

[hunter]

101. I can fix this real fast. Make all terrestrial radio local.

Only renew the licenses of ground radio stations that broadcast at least 67% local content. Encourage low power neighborhood broadcasting. Bring back local DJ's and newscasters. Leave national and international radio to the satellites and the internet.

[4 t 4]

102. Last time I looked Sirius is a penny stock

had it for a couple of years loved it but haven't had it since December

[Gabi Hayes]

106. what're you, a commie martyr?

[Renew Deal]

104. "Free radio" is worth the money.

It's completely worthless shit. It would be a tragedy if Sirius was lost.