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Thread: Sirius XM may be saying "goodbye"

  1. #1
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    Default Sirius XM may be saying "goodbye"

    Haven't seen it posted elsewhere, if it has, then delete/flame on

    http://www.nytimes.com/2009/02/11/te...ref=technology

    Last summer, Mel Karmazin was rattling off his trademark one-liners to talk up the future of Sirius XM Radio, the combined company he ran that had just been blessed by regulators.
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    Mike Segar/Reuters

    Mel Karmazin, chief of Sirius XM
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    Times Topics: Sirius XM Radio Inc.
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    Charles Ergen, EchoStarís chief.

    He was planning to cut costs and expand a business that was already a fixture in the lives of millions of Americans. ďForty-three cents a day ó itís not even vending machine coffee,Ē he said at the time, parrying a question about whether the softening economy might hurt subscriptions.

    But now Sirius XM, the satellite radio company, has problems with much bigger price tags. It has hired advisers to prepare for a possible bankruptcy filing, people involved in the process said.

    That would, of course, be a grim turn of events for the normally upbeat Mr. Karmazin, Sirius XMís chief executive, who had hoped to create a mobile entertainment juggernaut with stars like Howard Stern.

    It is unclear how a bankruptcy would affect customers. Service is unlikely to be interrupted, but the company might have to terminate contracts with high-priced talent like Mr. Stern or Martha Stewart.

    A bankruptcy would make Sirius XM one of the largest casualties of the credit squeeze. With over $5 billion in assets, it would be the second-largest Chapter 11 filing so far this year, according to Capital IQ. The filing by Smurfit-Stone, with assets of $7 billion, has been the yearís biggest to date.

    Sirius XM, which never turned a profit when both companies were independent, is laden with $3.25 billion in debt. Its business model has been dependent, in part, on the ability to roll over its enormous debts ó used to finance sending satellites into space and attract talent like Mr. Stern (who was paid $100 million a year) ó at low rates for the foreseeable future until it could turn a profit.

    The companyís success and failure are also tied to the faltering fortunes of the automobile industry, which sells vehicles with its radio technology installed and represented the largest customer base among Sirius XMís 20 million subscribers.

    Sirius XM owes about $175 million in debt payments at the end of February that it is unlikely to be able to pay.

    Sirius XMís problems could pave the way for a takeover by EchoStar, the TV satellite company, which has bought up Sirius XMís debt.

    Mr. Karmazin has been locked in talks with EchoStarís chief executive, Charles W. Ergen, over Sirius XMís options, people involved in the talks said. The men are said not to get along, these people said, and Mr. Karmazin had rebuffed Mr. Ergenís takeover advances before.

    Sirius XM hired Joseph A. Bondi of Alvarez & Marsal and Mark J. Thompson, a bankruptcy lawyer with Simpson, Thacher & Bartlett, to help prepare a Chapter 11 filing, these people said.

    Documents and analysis are close to completion and a filing could come in days, according to a person familiar with the matter.

    The threat of bankruptcy could also be part of a negotiating dance with Mr. Ergen, who could decide to convert his debt into equity instead of demanding payment.

    In addition to the $175 million due in February, EchoStar also owns $400 million of Sirius XMís debt due in December. If Sirius XM files for bankruptcy, EchoStar could seek in court to take over the company. Mr. Ergen, however, may be able to negotiate to convert his shares before bankruptcy at an attractive rate and gain control of the company, these people said.

    For Mr. Karmazin, the sale or bankruptcy of Sirius XM would be one of his first failures. He founded Infinity Broadcasting, sold it to CBS and later merged the combined companies into Viacom, where he had a notoriously difficult relationship with Sumner M. Redstone, the chairman, before being ousted.

    Mr. Karmazin bought two million shares of Sirius XM at $1.37 a share in August. Before that, he had bought 20 million shares at an average price of $5 each. On Tuesday, Sirius closed at 11.4 cents a share.

    Since the summer, the companyís prospects have dimmed.

    ďIím not trying to paint the rosy picture, because we have challenges connected to our liquidity and certainly our stock price is dreadful,Ē Mr. Karmazin said in December. ďBut, you know, our revenues are growing double digits. Weíre growing subscribers. Weíre not losing subscribers.Ē

    A spokeswoman for Mr. Karmazin declined to comment. A spokesman for EchoStar could not be reached.

    Mr. Karmazin staked the success of the merger on nearly $400 million in annual cost savings and the potential to gain subscribers through deals with auto companies to put satellite radios into cars.

    But satellite radio failed to win over many younger listeners, and competition from other sources slowed subscriber growth.

  2. #2
    Member sydaud's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    It would not bother me one iota if they got rid of Stern/Stewart/and all their sports contracts. I just like commercial free music and I hope that there isn't any interruption in service---doesn't sound like it'll happen, but I swear, I just can't go back to free radio.
    Quote Originally Posted by PotVsKtl View Post
    Don't trust anyone that tries to make you listen to the Beach Boys.

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    Coachella Junkie M Sparks's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    They are courting an investment/takeover from Liberty now.

    Mel REALLY hates Charlie. He'll do anything to avoid Charlie becoming his boss.

    XM has been completely ruined by this merger. Ron & Fez is the only thing that keeps me subscribing.

  4. #4
    Coachella Junkie luckyface's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    Honestly, Howard Stern is the only reason I even bother with listening to satellite radio. If he goes away, I am perfectly fine with my iPod in the car.
    For your health

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    Stage Manager captncrzy's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    I'm all for it if the restructuring brings back Boombox.
    Odi profanum vulgus et arceo. I hate the unholy rabble and keep them away - Horace.
    Quote Originally Posted by Drinkey McDrinkerstein View Post
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    Coachella Junkie M Sparks's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    Quote Originally Posted by captncrzy View Post
    I'm all for it if the restructuring brings back Boombox.
    Can't imagine how bankruptcy would help bring back any channel. If anything, they'll be cutting more.

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    Member anti-square's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    SHIT! They stopped broadcasting altogether!

































    No, wait... God I love buffering.
    ...

  8. #8
    Peaceful Oasis TomAz's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    My prediction:

    - Sirius XM files Chapter 11
    - Sirius XM's assets are sold at a discount to someone in India or China
    - creditors eat the rest
    - India/China owner now has satellites in space that someone else paid for
    - new company turns profit
    - programming largely unchanged, but when you call tech support they say "hello how may I be of helping you today?"
    Quote Originally Posted by efrain44 View Post
    Anyone know who the guy in the Cardinals jersey is? I've seen him in pictures on the board and I thought I saw him this year.

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    Coachella Junkie C DUB YA's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    other than stern there is nothing driving anybody to sat radio
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    Stage Manager captncrzy's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    Quote Originally Posted by M Sparks View Post
    Can't imagine how bankruptcy would help bring back any channel. If anything, they'll be cutting more.
    Bugger.
    Odi profanum vulgus et arceo. I hate the unholy rabble and keep them away - Horace.
    Quote Originally Posted by Drinkey McDrinkerstein View Post
    Arcade FIre are a bunch of dicks, Deadmau5 is a dick, bands are dicks, David Bowie sucks dicks, Daft Punk is two human buttholes with semen for brains (that was loaded into a butthole from a dick that grew out of their moms), we're all dicks that fucked our moms assholes, God is going to put a giant dick down and fuck our mouths

  11. #11
    Stage Manager captncrzy's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    Quote Originally Posted by C DUB YA View Post
    other than stern there is nothing driving anybody to sat radio
    Sports nuts
    Odi profanum vulgus et arceo. I hate the unholy rabble and keep them away - Horace.
    Quote Originally Posted by Drinkey McDrinkerstein View Post
    Arcade FIre are a bunch of dicks, Deadmau5 is a dick, bands are dicks, David Bowie sucks dicks, Daft Punk is two human buttholes with semen for brains (that was loaded into a butthole from a dick that grew out of their moms), we're all dicks that fucked our moms assholes, God is going to put a giant dick down and fuck our mouths

  12. #12
    Young blood
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    Default Re: Sirius XM may be saying "goodbye"

    Quote Originally Posted by C DUB YA View Post
    other than stern there is nothing driving anybody to sat radio
    Shitty stock advice from garrett222.

  13. #13
    Peaceful Oasis TomAz's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    Quote Originally Posted by captncrzy View Post
    Sports nuts
    Yes, I listen to ESPN and the NFL network fairly regularly on Sirius. Plus games from around the country during the season.
    Quote Originally Posted by efrain44 View Post
    Anyone know who the guy in the Cardinals jersey is? I've seen him in pictures on the board and I thought I saw him this year.

  14. #14
    Coachella Junkie HunterGather's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    Quote Originally Posted by captncrzy View Post
    I'm all for it if the restructuring brings back Boombox.
    I'm still sad they got rid of this channel
    Quote Originally Posted by stinkbutt
    I know it's hard, but try not to turn into GPS. It is just unfortunate for us all.

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    Beefy Soft Taco TommyboyUNM's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    Ron & Fez and Opie & Anthony keep me listening for the most part.

  16. #16
    lowfront
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    Default Re: Sirius XM may be saying "goodbye"

    Quote Originally Posted by TomAz View Post
    My prediction:

    - Sirius XM files Chapter 11
    - Sirius XM's assets are sold at a discount to someone in India or China
    - creditors eat the rest
    - India/China owner now has satellites in space that someone else paid for
    - new company turns profit
    - programming largely unchanged, but when you call tech support they say "hello how may I be of helping you today?"
    This is exactly whats going to happen, just maybe not an indian or china man

  17. #17
    Member sydaud's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    Quote Originally Posted by TomAz View Post
    - programming largely unchanged, but when you call tech support they say "hello how may I be of helping you today?"

    Thank you, sir, for my laugh of the day.
    Quote Originally Posted by PotVsKtl View Post
    Don't trust anyone that tries to make you listen to the Beach Boys.

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    Coachella Junkie dorkfish's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    Quote Originally Posted by TommyboyUNM View Post
    Ron & Fez and Opie & Anthony keep me listening for the most part.
    good to hear that budddday
    *based upon tedious fact checking.

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    Member garrett222's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    Quote Originally Posted by Young blood View Post
    Shitty stock advice from garrett222.
    tru dat. I bought 1500 shares for a hundred bucks yesterday! a steal. they don't have the Fat Lady music channel on satellite radio yet...so I'm still in.

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    Coachella Junkie faxman75's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    I got it for Stern and I listen to the music, news and nfl games during the season.

  21. #21
    Member garrett222's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    Quote Originally Posted by Young blood View Post
    Shitty stock advice from garrett222.
    up as much as 60% this morning. All aboard the gravy train!

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    Member ElBlueblazer's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    BaBabooey
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    Default Re: Sirius XM may be saying "goodbye"

    Tatatoothy


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  24. #24
    Young blood
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    Default Re: Sirius XM may be saying "goodbye"

    Quote Originally Posted by garrett222 View Post
    tru dat. I bought 1500 shares for a hundred bucks yesterday! a steal. they don't have the Fat Lady music channel on satellite radio yet...so I'm still in.
    You were hyping at 3-4 $ a share.


  25. #25
    Member garrett222's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    I was hyping at 75 cents actually.

  26. #26
    Member sydaud's Avatar
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    Default Re: Sirius XM may be saying "goodbye"

    And this mornng on Sirius 33, the brand new Paul McCartney channel
    Quote Originally Posted by PotVsKtl View Post
    Don't trust anyone that tries to make you listen to the Beach Boys.

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