Sirius XM Radio Faces Sky-High Debt

Discussion in 'SiriusXM Soundwave Cafe' started by GoodDog, Oct 23, 2008.

  1. GoodDog

    GoodDog Well-Known Member

    When Sirius Satellite Radio (SIRI) persuaded Howard Stern to leave traditional radio for satellite a few years ago, the shock jock took a few potshots on his way out the door. He railed against the "censorship" on terrestrial radio, and he vowed never to return. He called Sirius "the future of radio."

    It looks like a rocky future. Sirius, which completed a merger with XM Satellite Radio in July, is facing a serious cash squeeze. It has more than $1 billion in debt coming due next year, and it doesn't have the money, at least not yet. Chief Executive Officer Mel Karmazin has tried to reassure investors that the company will find the necessary funding, but the questions keep coming. "Am I going to lend the company the money? I hope not," he joked last month. "I hope we don't get to that."

    more at
    Sirius XM Radio Faces Sky-High Debt - BusinessWeek
     
  2. JoeTan

    JoeTan Well-Known Member

    Yeah, neither does GM or FORD.
     
  3. IdRatherBeSkiing

    IdRatherBeSkiing This space for rent

    They just exchanged $30mill of the $100mil owed in Feb with shares. Only $70 more million to go ....
     
  4. Rev. Jim

    Rev. Jim New Member

    Debt is crushing this company, and having a stock price that is insanely low doesn't help. Sirius XM is in a box --- if they cut or reduce programming to start paying off the debt, people will drop the services. That is what makes next month's rumored channel shifting/elimination very important. If they cut too many channels people love, then subscribers will blot.

    I hope Mel has some tricks up his sleeve that will help alleviate this burden.
     
  5. SISO

    SISO Member

    Government bail-out time!!!
     
  6. Manco

    Manco Active Member

    The stock is trading for a quarter. What a shame. The FCC get's some of the blame here, they should have made a decision way earlier and the cost cutting could have begun that much sooner.
     
  7. GAMER

    GAMER Member

    I am pissed at management for jeopardizing the company the way they have ran debt up and now the economy it tanking people are cutting back and I will be amazed if this company survives.
     
  8. Manco

    Manco Active Member

    I think thety will survive, but there is a risk that they could be taken over by some other cash rich company. I hope they can stay independent for long enough to at least have a strong balance sheet, but by then I expect they will get bought.
     

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