Sirius XM gets $530M from Liberty Media

After Sirius XM prepared itself for bankruptcy, Liberty Media stepped in and invested $530 million into the company for 40% ownership in the company. Sirius XM was on the verge of filing for chapter 11 bankruptcy when rumours started to fly about EchoStar and Dish Network would purchase enough of the company to take it off, in return, restructuring the company by firing management.

The investment into the company is enough to help cover some of the overall debt and more as Sirius XM will need to pay $171 million this week, making a slight damage in the company's total debt of $3.25 billion.

The company could see clear skies ahead if President Obama's stimulus package works and top automotive company's continue to sell vehicles with Sirius XM Satellite Radio pre-installed.

Sirius XM Satellite Radio is a portable commercial free broadcast that offers a wide range of genres in music, as well as a clear signal anywhere in North America. Stocks doubled in the early day of trading for Sirius XM (SIRI) as Liberal Media invested into the company, rising from $0.10 a share to $0.19.

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xpablo, they have already announced rate increases starting in March.

As for me, I HATE how the merger worked out for both XM and Sirius. They both went to hell. I've already canceled my XM subscription, my girl still pays for hers but never listens to it anymore, and my best friend is about to cancel his sirius.

Only thing the merger did was make them both easier to acquire, if there had been no menrger they both would still have filed for Bankruptcy and as two separate companies the odds of surviving were slim at best

So we can have one combined and still available company or two failed companies and no satellite radio at all

MR_Candyman said,
xpablo, they have already announced rate increases starting in March.

As for me, I HATE how the merger worked out for both XM and Sirius. They both went to hell. I've already canceled my XM subscription, my girl still pays for hers but never listens to it anymore, and my best friend is about to cancel his sirius.


C_Guy said,
Didn't see that one coming.

Our only hope now is that Liberal Media demands better from the company.


LIBERTY MEDIA

I was under the impression that the March rate increase was solely for additional receivers. Am I wrong in thinking this?

they are going to charge for the web radio now also.

If you lock in for at least a year your rates won't go up at all for anything.

StevoFC said,
they are going to charge for the web radio now also.

If you lock in for at least a year your rates won't go up at all for anything.

They are upgrading the service with higher bit rates, it's not just a mindless charge.

This is total BS because I signed up for 3 years a year ago. Now they want me to sign up for another year and chance a total collapse of their company?

That's like saying, "Hey you just bought and paid for this car, but we want you to pay a little bit more for servicing it even though it's under warranty."

uh no, it's nothing like that at all.

They need money now to pay off dept. So, people willing to pay in advance not only get a lower rate than paying monthly, but give the company extra cash flow to pay off their debt. Which in turn saves the company money by paying off loans that they pay interest on.

It's really not that hard to understand...

Your car example makes absolutely no sense.

When XM and Sirius went to the FCC seeking a merger, they said that they would not raise the customers rates. And in fact, they would get more for the same price. Now what they're doing is highway robbery. It's not my fault that they are in debt. That's the danger of being in a business which tries to deliver so much for so little.

Maybe they should have thought twice about paying Stern $500 million with very little in return. The satellite business model DID NOT take iPods and mp3 players seriously when they built their service.

Ok, time to tie the tin foil hats on. Let me throw this "conspiracy" out there.
"Liberal Media" invests in Sirrus/XM....BEFORE the "fairness doctrine" is put back into place.
Once the liberals knock the "conservative" talk radio hosts off the air, they will attempt to flee
to satellite radio, but, once "Liberal Media" gets a controlling stake in satellite radio, they will not
allow them to be on satellite. Would this be a socialist/liberals wet dream or what?

naap51stang said,
Ok, time to tie the tin foil hats on. Let me throw this "conspiracy" out there.
"Liberal Media" invests in Sirrus/XM....BEFORE the "fairness doctrine" is put back into place.
Once the liberals knock the "conservative" talk radio hosts off the air, they will attempt to flee
to satellite radio, but, once "Liberal Media" gets a controlling stake in satellite radio, they will not
allow them to be on satellite. Would this be a socialist/liberals wet dream or what?

LIBERTY MEDIA

im considering paying out the $600 for the lifetime subscription, my ford escape comes with satelite radio and with over $100/year on normal rate, the lifetime subscription makes sence to pay.

LIBERAL MEDIA! Liberals! Always thinking everything can be fixed by throwing money at it!

LIBERALS!

LIBERALS

Someone think of the children!

Xenomorph said,

LIBERAL MEDIA!
Liberals! Always thinking everything can be fixed by throwing money at it!

LIBERALS!

LIBERALS

Someone think of the children!

im personally a conservative, but liberals would be my second choice if they had a better leader..

LOL

It still says Liberal.

Doesn't anyone check these stories after they are posted?

In case anyone missed it, Sirius/XM did NOT get money from the liberal media, but in fact a company called Liberty.

Xenomorph said,
LOL

It still says Liberal.

Doesn't anyone check these stories after they are posted?

In case anyone missed it, Sirius/XM did NOT get money from the liberal media, but in fact a company called Liberty.


We are all human. And in the future, be a human yourself and report it not post about it

yeah last week when the stock dropped to about 6 cents a share I wanted to buy some but everyone said I was crazy. I wish I would have...

it's one thing to bail out the important things that actually help the country. it's a whole other thing to start bailing out things like satellite radio when it's their fault for paying people like Howard Stern, Martha Stewart, and Oprah amounts of money that the majority of the country will never be able to earn working 9-5 monday to friday

and Howard doesn't even work on Fridays!

timster said,
it's one thing to bail out the important things that actually help the country. it's a whole other thing to start bailing out things like satellite radio when it's their fault for paying people like Howard Stern, Martha Stewart, and Oprah amounts of money that the majority of the country will never be able to earn working 9-5 monday to friday

and Howard doesn't even work on Fridays!


Right. What they did give Howard Stern again for his little dog and pony show? In hundreds of millions for 5 years?? So, cry me a ****ing river if they closed up shop...

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