Directed announces split with Sirius satellite radio

jwt873

jwt873

Member
Oct 12, 2008
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This doesn't look good. It appears that Directed is bailing because they feel Satellite radio is too risky.... I'm guessing that SIRI will need to find another radio distributor. I wonder if it will affect the production and sale of interoperable radios??
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Directed announces split with Sirius satellite radio

Friday, November 7th

Directed Electronics announced earlier this week that it will leave the satellite radio market, ending its agreement to act as Sirius satellite radio's exclusive retail distributor as of January 31st, 2009. The company says this is due to the softening market for the subscription-based service and, along with Sirius XM's more than $1 billion in debt, is calling the agreement an unfavorable "risk-reward tradeoff."

As part of the dissolution, Sirius XM will buy back Directed's satellite radio hardware stock in the first quarter of next year and assume all responsibility for all product returns and warranty issues submitted after January 31st. Directed currently has about $27 million in Sirius inventory, according to DEI Holdings CFO, Kevin Duffy.
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