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the street.com is reporting Sirius preparing for bankruptcy

 

http://www.reuters.com/article/busin...rpc=23&sp=true

Here's another link. Check with your Credit Card company to see if they'll protect you from a loss if XM goes under and takes your money with 'em.

 

I doubt seriously that they will go under, most likely scenario would be that Echostar (sucks) will take them under BK proceedings.
We will still have our XM but you can forgot about the $77.00 renew special.

 

Need to update thread title to stock at 5 cents!

 

I think they will come out of bankruptcy like airlines but with alot small offerings.
All these big Japanese/German Automakers should pool some money into it to help them for Auto industry.

 

at least now we know why they contacted everyone recently and said the rates are going up unless you pay for a year or more in advance. They need cash! Glad I didn't bite on that offer. This company is on the ropes. Kind of figured cash was low when the NavTraffic service stopped expanding. Haven't added a single city or extra feature in over a year. Then they merged with Sirius. Ugh. It's all going down the tubes.

 

That's what got them in this mess. XM and Sirius have been beating each other up to survive. Destroyed both of them. Then they tried to merge to recover, but the balance sheet damage is done.

I question this whole business model. Satellite broadcasting is inherently very expensive. I don't really think anyone can offer commercial free satellite radio at a price point that can reach the masses. I have 3 cars with XM. That's $400 a year for RADIO! Is the average person going to pay that when they have a free source of music and talk already in their car? it will never reach critical mass in sales at these prices. It will always be a "luxury" item for a few.

I think the ultimate solution must be to combine the best of both. Satellite broadcasts for national uninterupted radio, along with commericials to make it free or nearly free. if they do that then terrestrial radio is dead

 

Down to $.06 now, be careful.

 

I think their business model has been more in line with cable and CDs when all the media around them is being forced to adapt to an internet model where content (free) is available everywhere. There are internet radio applications (i.e. Pandora) available for the iPhone over 3G that provide customized content for no additional fee. I frankly listen to that or my iPhone much more than I listen to XM when I'm in the car.

 

^^^^ That too Good point. Anyone under 30 probably has a hard time paying for information. It's all becoming a commodity. Buy a newspaper? What are you kidding, I can get all the news for free on the internet. Pay money for music? Hell, even I don't do that anymore and I'm "old". yea, it's an uphill battle for them. Sat TV started years ago before the info explosion. Also, streaming TV is still in the future (but near future). 5 years from now, TV and movie industry is going to be where the music industry is now. On the rocks.

 

SpicyMikey, I'm "old" too. Even older than you. Oh, and BTW, GO BUCKS!

 

As long as I can listen to all kinds of different music in my car, I don't care what happens.. And Howard Stern needs to give some of that $500 million back, whadda joke!! Think that $77 secret deal is all over, and when I try to get it in a month when my 3-month trial period ends, I will proceed to get laughed at and hung up on?

 

Always glad to meet someone older then me on this site. Makes me feel younger

Yea, I live in Orlando now so the Bucks are my "plan b" team in the playoffs. But I grew up in NJ and come from a family of Giants fans. I bleed blue

By the way, saw that DirecTV is showing interest in XM now. That would make sense, but they still need to probably throw out this "commercial free" format. Maybe have some channels that are "premium" channels with the majority not. Sort of like TV. Could you imagine how expensive your cable would be if ALL the channels were commercial free like HBO?

 

Anyone remember a satellite phone company called Iridium? Launched about 10 years ago, 9 months later in bk,assets ultimately sold to private investors for about 4/10 of a cent on the dollar. I would imagine XM follows this course somewhat. I think one of Iridium's satellites just crashed into a Russian satellite recently. Hopefully XM does not have that problem.

 

Didn't Dr. Evil own Iridium?

 

The Iridium network has 66 satellites on line (now 65) with 6 on orbit spares, one of which is being readied to take the place of the destroyed satellite. The network is expected to last through at least 2014. The next generation Iridium (Iridium NEXT) constellation is in the planning phase, and contractors are in competition for building the next set hardware, Lockheed Martin and Thales Alenia Space.

Should be interesting.

 

LOL!

Back on topic, bankruptcy expected on Tuesday.

Someone will scoop the company up, I'm sure, for cheeeeep.

 

I'll be watchin squawk in the street come tomorrow mornin...

 

The Latest:
Liberty Media (NasdaqGS: LINTA - News) will offer Sirius XM a $250 million secured loan designed to "rescue" the company from the advances of Echostar (NasdaqGS: SATS - News) CEO Charlie Ergen, FT reported. The EchoStar head has been attempting to win control of Sirius in recent weeks by purchasing the troubled satellite radio provider's distressed debt while at the same time offering to invest cash in the business.

Liberty's offer is intended to block Ergin from controlling Sirius (NasdaqGS: SIRI - News). The loan is considered the first part of a "multi-stage" deal help Sirius meet a fast-approaching debt payment, FT said, citing unidentified sources. The Liberty/Sirius deal involves a debt for equity swap and would leave Liberty Chairman John Malone's group, which controls EchoStar's larger rival DirecTV (NasdaqGS: DTV - News), with an otherwise unspecified stake in Sirius. The other stages of the deal weren't clear. The moves follow Sirius' warning that it would file for bankruptcy protection if it couldn't restructure its debt by this Tuesday. In all, Sirius has $3.25 billion in outstanding debt; $1 billion of that is due this year.