Sirius XM prepares for bankruptcy

The recently merged company between Sirius Satellite Radio, and XM Satellite Radio, have merged into Sirius XM, but along with the merge, came a massive debt that neither company was able to cover. The total debt for the newly merged company totals $3.25 billion overall, $175 million that is due at the end of February, something the company is unlikely to cover.

The company that reports more than 20 million active subscribers can see both its success and failures come from the auto industry, which offers Sirius XM pre-installed in some of the vehicles, but has recently asked for a bail out to dig itself out of the recession. The debt amounts from expensive satellites launched into space to provide signals anywhere in North America using the Sirius XM receivers.

EchoStar, a TV satellite company, could take over the company if things don't improve in a very short time. It is unclear if customers will be affected with the down fall of Sirius XM even with a rise in customers over the last year, having more new and returning customers than ever before.

An announcement will be made shortly if or when the company completes the paper work for filing a chapter 11. High priced talents like Howard Stern and Matha Stewart, both brought on by the company to promote the sales of their hardware, could see a prompted end to their satellite career as the company tries to cut back.

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i've been following the two companies and their stock for years and i have to say i'm not all that surprised...they never really 'took off'...

It's one thing to pay for tv, but paying to listen to radio never appealed to me. Howard Stern made off like a bandit w/ Sirus.

it definitely appealed to me. i spend an easy 10-12 hours/week in the car and find the service invaluable for me. i cant really argue with the amount of time i spend listening to it for $15/month.

you could also make the argument that many of us pay for tv when there is free tv available

I love my XM, I have a portable for my car and docking station for anywhere else and a Home tuner for my home theatre. I think it is a great deal, we listen to it all the time. We can have music or talk throughout the house. Losing the online radio kind of irks me, but I don't listen that much online anyway, but it was nice to have. I was thinking about paying in advance, but now might be wasted money. Stern is a jerk and loser, no better than the banker criminals.

Why not try internet radio for the home. . .it is free. At present I use Pandora which allows you to setup various stations of your own choosing. With Pandora all you have to do is type in the name of an artist you want to listen to then Pandora sets you up with music within the same genre.

On one hand, this totally sucks..I have to say that the service is awesome and channel line-up is pretty bad ass. On the other, I can also understand why this is happening. I think the companies are poorly run. Example: I had a free year of service with XM. They billed me and I called them and said I didn't want it and that they could terminate it right away. That was in 2006. My brother and I turned it on for ****s and giggles in 2007, a full year later. Damn thing was still working! Still is!

Doesn't make a difference, they'll be bought by someone. They come standard or almost a no-cost option in every car in the US. Infrastructure is too wide to fail.

This is hardly a surprise. I'm sure it's a great service but I will be elated when I don't have to hear the garbage "Sirius Hits One" everywhere I go. Seems most gyms and retailers don't realize there's more than the one channel

I guess that's what they get for paying ginormous amounts for people like Martha and Stern -- they obviously knew the risks of such things and it's biting them in the arse now.

The competition for XM Sirius is *not* free radio (or even Internet radio) but MP3s (especially DRM-free MP3s). People being able to create and take with them superlarge MP3 playlists (courtesy of iPods and other MP3 players) is trainwrecking *all* radio. I've listened to Sirius *and* XM (back when they were still separate companies), especially when going to Atlantic City (most of the small cafes and shops that still dot the Boardwalk would have Sirius or XM playing as background music), and via AOL Radio (The Best of XM feature of AOL Radio let me tune into a selection of XM's most chosen stations free) at my computer. Sirius and XM DO have their advantages over local radio (especially if you drive more than an hour in any direction away from home; signal fade is *still* an issue with FM radio, but is something that both XM and Sirius are immune to).

HD radio? Oh, please. Compared to HD, XM and Sirius are *still* comparative bargains (while HD radio is free, you get whacked hard for the cost of the receiver; typical XM/Sirius subscriptions are less than $15/month, and the base receiver is often doscounted or even free).

It's far better than just loading up an ipod with mp3's. Sirius has shown me so much music that I would not have otherwise found. And I listen to news and talkshows on there regularly. As well as sports.

It'd be a shame if Sirius XM went down since I had their service for a few year, and I absolutely loved it. I personally think it was a huge mistake for the two companies to merge.

I never bothered to install it on my car (its prewired w/antenna, needs a tuner unit only), as I just listen to FM if I feel like having someone else DJ for me...

Those of you complaining about it being pay radio need to remember a couple of things: Pretty much no FCC regulations - Howard Stern can say whatever the hell he wants. Uncensored radio. Hour long blocks of music or more with five to ten minutes of commercials all at once...Not to mention uncensored music. Hundreds of channels. Like Korean music? Tune in to the Korean channel. Want CNN? Tune in to CNN. Want to listen to Howard Stern all day? Tune in to him. They have channels for every era, every genre. The subscription fee is also pretty minimal. For the price you pay to play World of Warcraft you can subscribe to Sirius. If you're a truck driver, do a lot of traveling or just don't like watered down radio, it's a great hing to have.

As for the whole bankruptcy thing - That's a shame. I really hope they get out of this one. There's just so much quality programming on Sirius-XM.

Hour blocks??LOL I have a hard drive in my car that can play a week straight with ZERO COMMERCIALS and you'll never hear that same song/show/concert twice. Howard stern banter?LMAO! Hes not even funny or profound. IMO, He's never said anything worth listening to. He reminds me of myself 40 years ago. lol
Its all well and good to be able to tune in some hillbilly RAP or some Stravinsky Poem-Chant,but how much time do you really have to listen to that BS? IMO, Pay radio was a joke from day one. I got some magic, shinny, pinto beans I'm selling real cheap, any takers? lmao cryst

Actually there are NO commercials on the various music channels. I sure hope they dont go under as I love my sirius. Introduced me to all kinds of new bands that I have not heard before and the quality compared to FM is nice.

Chapter 11 (Which Sirus XM is doing) = We think we can still survive, just get us away from some debt, and let us restructure our company.

Chapter 13 (which is what there NOT doing) = everything must go and the kitchen sink, think Circuit City.

jstillion said,
Chapter 11 (Which Sirus XM is doing) = We think we can still survive, just get us away from some debt, and let us restructure our company.

Chapter 13 (which is what there NOT doing) = everything must go and the kitchen sink, think Circuit City.

One often leads to the other.

They'll never get my money. Head units with USB input means my own private commercial-free station. Can't remember the last time I listened to the radio.

I love my Sirius/XM Radio.. There is no comparison to this and regular radio, which I haven't listened to in 5 years since i got satellite radio. I hope the company prospers and more people realize that it really is a great service, even for the 14 a month or whatever it is. Cheap pricing in my book.

Were these people REALLY thinking hiring Stern and Stewart would save them? There can't possibly be that many fans of those 2, especially Stern. That guy has been a retard since day one, and then, there's the ex-convict Stewart. C'mom, give me a break!!

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