BREAKING: Sirius XM preparing for bankruptcy - Report - Orbitcast

BREAKING: Sirius XM preparing for bankruptcy - Report

Charlie Ergen

Sirius XM Radio Inc. are preparing for a bankruptcy filing, according to a published report by the New York Times. The filing could come "within days" reports the Times, citing a person familiar with the matter.
It's a move that could place significant pressure on satellite company EchoStar, which now owns the majority of a $300 million tranche of Sirius XM's debt that matures next Tuesday.

According to the New York Times, Sirius XM Radio Inc. has been working with the restructuring expert Joseph A. Bondi of Alvarez & Marsal and the bankruptcy lawyer Mark Thompson of Simpson, Thatcher & Bartlett to help prepare a Chapter 11 filing, people close to the company told the newspaper.

The filing could come within days as documents and analysis are close to being completed, according to the report.

The threat of a possible bankruptcy filing could force Charlie Ergen (pictured above) to make a formal offer for the company now if he doesn't want to go through an auction in bankruptcy court.

It could also compel Ergen to agree to convert his debt into an ownership stake in Sirius XM Radio at a higher price than he originally considered.

[New York Times]


Greed got the best of me but let Mel, The FCC, DOJ and Wall Street



Mel and hoo hoo howie destroyed xm...the little doggie company that wasn't.

Thanks, Mel....I hope you go to jail for fraud.

Fark. I have been part of the XM world since 2000 (before launch). It was a sad day when the companies merged....I thought it would be the beginning of the end....sad day, indeed...

xm killed this company as it was their all their debt this year that killed sirius--and me as my deductions for losses will last my lifetime now

I"m cancelling, burning, and spiting on all 4 of my subscriptions !!!

I lost $235,000 on this @#$!%@$

YES! What has been said about the "merge" MONOPOLY has come true. We were 1000% better off when there were 2 satellite radio companies. It's time to start to listen and learn instead of reject others FACTS. This is Mel's fault, and worse he USED those satellite radio fans who were too blinded to see what problems a "merge" MONOPOLY would bring.

Sirius XM Prepares Bankruptcy Filing

good Luck Bro...

XM/Sirius..."your mom's box"


Time to upgrade.
"All things Slacker and HD Radio"

well gary you fucked us xmers over by selling the company over to mel i miss all the old channels that made xm great :( you wont be missed mel k

yes it's Mel's fault. he merged a company that had lot of debt. he should of let xm go off and die.

yes it's Mel's fault. he merged a company that had lot of debt. he should of let xm go off and die.

this isn't over yet. mel is playing poker and now its ergens move. we'll see how this plays out.

Yup, Howard's half a billion dollar paycheck and Martha's huge paycheck and huge payments to the NFL didn't hurt Sirius at all. No, it's all XM's fault, right?

so what next ??????????????????

Daddy Mel giving his buddy Howie $.5B for the 100k subs he brought was the death knell for satellite radio.

Mel has done for satellite what he did for commercial radio- sent it right down the toilet.

I am sure he and Hoohoo are busy packing each other's...golden parachutes

Daddy Mel giving his buddy Howie $.5B for the 100k subs he brought was the death knell for satellite radio.

Mel has done for satellite what he did for commercial radio- sent it right down the toilet.

I am sure he and Hoohoo are busy packing each other's...golden parachutes

no sympathy here.

they just charged me a $15 "change fee" to activate a replacement radio. i've had it with them.

those of you who wanted the merger: all of this is your fault. :-p

I will keep the Stiletto2 on, when it quits playing music, Stern, politics, and football.. I quit.

To all the FM testicle radio companies..... I still won't be back. COMMERCIALS SUCK.. I suspect most satellite radio listeners feel the same way.

Never fear sat radio lovers/fm haters, there are plenty of mp3 players out there. We all saw this coming..... MERGERS NEVER BENEFIT THE CONSUMER! Yes, the smarter move would have been to wait for XM to file it when they were 2 separate companies if this was their debt then acquire them.

Does this meean that the BBBBBoys will get Howie's so called "state of the art studio" at Sirius?

No real surprise considering the stock price and our current economy. This is the bottom, SiriusXM will be back on top in some way, some form and at some point....maybe as part of Echostar. I own 1000+ shares of the company, granted it's probably worth about 10 shares of Echostar, its still better than nothing.

Karma's a bitch. The arrogance of both companies' management has been utterly amazing.

They deserve this. They brought it upon themselves. Unfortunately, they've dragged the shareholders and their customers down along with them.

sternfan73 is right... he should have "let XM go off and die" on its own. ;-)

EVERY XM subscriber agrees that would have been preferable to what Mel did.

"your mom's box!"

So... what happens to our radio's and programming?

At this point, and with the economy as it is, isn't Chapter 11 a GOOD thing for those of us who listen to SATRAD? Reorganize, get some debt relief and continue operating...someone with pockets might even step in and more quickly make it a viable concern.

Hoo Hoo must be sick. He knew he was overpaid and his deal was bad. Sure he has the $, but he already had more money than he knows what to do with.

Now he either has to crawl back to terrestrial or retire like he should have years ago.

Hopefully the best show on satrad, Ron & Fez (noon to 3) gets a gig on regular radio and can lose all the hayseeds who have ruined the show with their awful calls day after day.

Here's the issue that no one is bringing up...if EchoStar does try and buy Sirius XM, it needs to get government approval.

This could be really ugly....

Just for a big dose of irony, it looks like Michael Hartleib actually saw this one coming...

Well people, I share the same sentiment as most of you. If Mel were to knck on my door .... ahhh...
I'm a poor working class dude & appreciate honest answers to my question :
To keep and take this loss (ain't gonna say $)
or to sell now at whatever the f... price is ???
sincere replies appreciated, thank you

For once Ryan, Hartleib was wonder over it this is: could the bankruptcy be a wedge to force Ergen to make a formal offer for the company?

Sirius/XM would be a good addition for EchoStar, and my feeling is Ergen will be more fiscally responsible. I do not think, as the story reports he will want to go into court to make his bid. I also am unsure what the new-look company would be like under him.

Well people, I share the same sentiment as most of you. If Mel were to knck on my door .... ahhh...
I'm a poor working class dude & appreciate honest answers to my question :
To keep and take this loss (ain't gonna say $)
or to sell now at whatever the f... price is ???
sincere replies appreciated, thank you

i knew this was coming

If Sirius XM files Chapter 11, it WILL wipeout shareholders, regardless.

Either they sell the company, or go into Chapter 7 and Liquidate. No way $3 billion in debt holders are going to negtiate to refinance when the company is in ch 11. All contracts will have to be renegotiated, subscribers will leave (not all mind you) and who in their right mind will buy satelite radio recievers right now? ESPECIALLY after watching what happened with Circuit City.

Much of the current talent will leave, either when the contract is up, or sooner, depending on how it is all written.

And you can bet that the car companies will want more money for installs.

If the company files bankruptcy, which seems VERY likely, shareholders will be completely wiped out. Echostar will buy the company from the other debtholders, and shareholders will get NOTHING.

And if it requires DOJ and FCC approval, which it probably will, and is drug out like last time, it will die a slow and very painful death in the process. Get ready for the mass exodus of subscribers that will make 11/12 cancellations pale in comparison.


I'm down $180,000 myself. I'm not sure what I will do with my 2 subs. But one thing I am certain of. I will never go back to crap-FM.

No way.

This thing ain't over yet. BK would wipe out Mel's 28 million shares. I'm not sure what it would do to that EchoStar shithead's $300 million in debt, but he would probably lose too. Both men had to know this could happen. This whole BK threat might just be a game of high-finance chicken.... I hope.

This will get interesting...Thankfully, I'm not an invester. However, as a subscriber, I'd hate to see the service die completely; it's still better than anything terrestrial has to offer. Considering I just bought an XMP3 right before Thanksgiving, I'll ride this one out until the satellites go silent. Let's hope they can either re-structure, or someone who knows what they're doing as far as the music programming takes over and restores the music side of things to what it was prior to November 12. I can see why investers are pissed, certainly...But I think as subscribers and listeners, we should ride this one out and see where it goes...Maybe not keep all the multiple subs, and definitely not pay for online, but at least keep a radio or two turned on.

But yeah, if the bankruptcy filing does go through, I think we can say godbye to Howard...Probably MLB and NFL, unless they can re-structure the sports deals since there is no other satellite provider for the leagues to turn to. Not sure where O&A, R&F, Tom Petty, Bob Dylan, and all the single-artist channels fall into the mix, but that'll be interesting to watch.

Hellooo? Did anyone actually read the article??? The is one BIG BLUFF to either force someone to act (Echo or another) or to push down the price so a partner can snatch SIRIUS on the cheap. DUH.

Are you stupid????

Howard = $500 million!

XM = not suck

How can Sirius file for BK when there is an offer on the table?

"BK would wipe out Mel's 28 million shares."

He made over $32 million in 2007 alone. If the company goes bankrupt, losing 28 million shares (which are currently worth around $3 million) isn't going to send him to the poor house.

In fact it would be a nice tax write-off, plus it gives him a plausible defense ("Why would I invest so much of my own money if I had ulterior motives? I'm in this, too!") when faced with the inevitable shareholder lawsuits.

Mel Karmazin wasn't in charge when Howard signed on for $500 million. That happened before he came on board.

I hope Mel gets tared and feathered. XM was/is way better than Sirius, and even with its debt was a better run company than Sirius was/is. The sad thing is, Mel's got his money, Howie's got his money and the subscribers are the ones who are getting screwed. Way to go Mel, way to destroy what could've been the best subscription based service out there.

This is a shock. I purchased 500 shares the morning HS announced he was leaving crap FM. Just felt such solidarity with the move and the horrid nepotism of the then FCC chair and the religious right's bible thumping. Remember the excitement the morning of Jan 9, 2006, the heartbeat, and Mr. Takai's morning announce (that got botched--maybe that was a sign). The shares and the loss I take are secondary to the fact that uncensored days of Stern may be numbered . . . I just dont see myself going back to FM. Maybe college radio, but this is like back to the future--a giant step backwards. I have been feeling that all my friends that didnt get pay radio were in FM hell whenever I'd be in their cars and you'd hear, at best, "Money," or at worse, any song from the 1990s, not from a Seattle band . . .woe is me.

Bring Eric Logan back he will fix everything.

Who destroyed satellite radio?

- Howard Stern (50%)
- Mel Karmazin (25%)
- Gary Parsons (25%)

Personally, I think Parsons really bears more responsibility because he is the person who made the utterly stupid move to merge with Sirius. While it was clear Sirius had a tough road ahead, it is pretty clear also that XM would have survived.

Anyway, they deserve each other.

*Wow, who saw this coming*

Damn. This sucks.

A sad day this is if it's true....

....but I saw this coming a mile away.

Too much debt, not enough income.

This isn't ALL Mel's fault, but he did most of the damage. Too little too late.

The current shareholders will be the ones left out in the cold, but sorry to say, they deserve it. Too many of them pumped the stock the last several years without looking realistically into the finances.

The service just isn't the same as it used to be (but it is still light years ahead of terrestrial).

Hey, maybe Stern will buy the company with the money he made! (sorry, had to say it).

If they file BK, I will cancel all my subs!

I hope echostar goes under as well!


I see the Oprah and Annie drones have stepped away from their PSP's to post again. It's too bad that they understand so little about business and have no grasp of reality. Their hoo hoo comments are comic gold. They must write for those two trannies.

XM was dead in the water and Mel should've let them go under, aside from MLB there's nothing worth having.

Oprah n Annie could go back to their testicular empire of 1 or 2 stations and fade into obscurity. And ron n pez, well they could go back to shining shoes or whatever they shine.

I think that the reason of the merger was to destroy SatRad, I have not seen nothing good after the merger, only bad news.
XM was perfect. I used to listen XM in my car, at home, at work, now I listen less because I have less music channels, all the channels that were the reason for me to buy XM are gone. Thanks Mel!
I miss the original XM.

Anon is right- these guys a re playing high stakes hardball- either Mel or Ergen, both of whom have invested millions of their own money in this thing, is gonna blink.

Sit back and watch the story unfold- this is gonna be a good one and no one is going to let 19 million subscribers go bye-bye.

a half billion for Howard, and frumpy old Martha's paycheck while those who loved music get tossed in the street and the playlists slashed to less than the average person has on his IPOD. Way to go Mel! Standing ovation here.


Though the vision was there, the leadership was not.


Fuck Sirius and Howard.

All because I cancelled all my radios last week. I'm sorry I had to be the straw that broke the camel's back, but you really shouldn't have turned of XM 82 The System, you jerks!
And Stern won't renegotiate his $100M/year salary. Typical indignant ass has killed two companies--much more damage than O&A could have ever done.
Congrats, Howie!!

With as much as they are paying Stern, no surprise there, I predict they will be out of buisness by the end of the year SIRIUSLY, DOG GONE!


Did you really think it meant the end of your life...

You know after BK that your screwed also....

ha ha ha ha ha

Mel's an ass.....Stern sucked 'em dry....

Love live O & A.....I'll second "Your Mom's Box".....

And to think seven years ago when I bought my first XM receiver, I believed this was going to be the new standard of radio.

Mel should rot in hell! he totally fucked up a good thing destroying these two companies.....But I still won't drop my subscriptions

I'm just an XM music fan who ended up paying the freight for Stern's pigfest, and losing what I signed up for.



Don't be sorry about your suggestion; you said what many people were probably thinking. Just how much money do some people need to have, and just how commited to this company are some of these phonies?

If Karmazin and Stern had any conscience, any decency, any balls at all, then they would make an investment in the very company that they ballyhooed and supposedly believed in. If these two cared a fraction as much as many of the subscribers do, and had the same passionate connection to satellite radio, then they would step up to the plate and prove it. Unfortunately, neither is likely to leave the dugout.

The more I think about this alleged preparing for bankruptcy, the more I start to believe that someone is bluffing. I might be dead wrong, but something doesn't seem kosher here. Life is a big game, and this could just be Mel pushing some buttons to get the response he's looking for. Maybe I'm delusional, but...... you never know!

i was employed by xm in 2000 and moved to sirius in 2005. Good riddance!! Mel ruined this company.... he was a tyrant and made everyone fearful of him.... his cronies were no different and they all sucked !!!! promises that were never kept, fraud, stealing from employees too.. i can go on and on.. one day!! good riddance melvin!!

They're playing "chicken" with what little is left of my money. I've personally been wiped of 85% of my retirement, and SIRI was a significant portion of it. Management had EVERY opportunity to turn this into the de facto radio standard. They were granted a government monopoly, albeit a limited one. There are few businesses that have opportunity set up for them as nicely as SIRI had.

The worst part is that everyone got so caught up in corrupt government crap. SIRI should have walked away. Instead, they got beat up. I think I would have done that too; I thought the merger was right. With that said, everything AFTER the merger has been a straight CLUSTERFUCK. Poor business practices, broken customer promises, and a path of destruction and campaign contributions.

My dumb ass bought a lifetime sub. I thought I got a good deal. Now I'm in until they turn it off, and frankly, losing that money would be a pittance compared to my equity losses. In my perfect world, the FCC and SEC would intervene in this trainwreck, and start protecting We the consumer, and We the investor from Them the fraudsters.

>> If Karmazin and Stern had any conscience, any decency, any balls at all, then they would make an investment in the very company that they ballyhooed and supposedly believed in.

Ha. You've got to be kidding.

Stern was at his broker's office within microseconds of receiving his shares, dumping them. Because he knew damned well he couldn't live up to the demands placed on him as the "savior" of Sirius.

Unfortunately, Gary Parsons was just too big an idiot not to see it. So, now, instead of Sirius going broke and XM staying around to work through the difficult times, ALL of sat radio is broke.

Much as I've bashed Stern over the years, he made far more money on these companies than anyone else ever will.

I really don't know what to say. I was for the merger, beleaving the hype better programming and channels. XM has gone to hell in a handbasket. I can replace the music with Pandora, my iPhone or get Slacker. I would miss the sports and news talk. Maybe some good will come out threat of or the actual filing.

I really don't know what to say. I was for the merger, beleaving the hype better programming and channels. XM has gone to hell in a handbasket. I can replace the music with Pandora, my iPhone or get Slacker. I would miss the sports and news talk. Maybe some good will come out threat of or the actual filing.

fuck you Mel, you lying cheating piece of human trash.

may you rot in hell for stealing this company from us shareholders.

what a big shaft this is....

I love how people are in denial that this BK might not happen.

dude, its over... we have been royally FUCKED!!!

I hope sirius goes down in flames.

even howard is going to get screwed on this one. they were discussing it today and they don't even realize that they are DONE!!!!

I just feel bad for all the good folks who tried to make this work. I guess the high flying, free spending culture - expensive dinners, rooms at the Belagio in Vegas, trips to the Grammy's, Super Bowl trips, etc. - finally did this company in. Lots of people who were let go from the XM side and got a severance package to stick around and were let go in December/January probably won't get paid out - those who are let go post-filing won't get anything. Those are the folks I feel sorry for.

Good luck to you all.

im selling my 15,000 shares first thing tomorrow and gonna go drop it at a bar to celebrate being completely robbed by Mel and his gang of thieves.

my $68,000.00 has been reduced to a little more than a thousand bucks.

thanks mel.

Just sucks if they do file for bankruptcy. Especially after sending those mass e-mails telling everyone to lock in your low prices after the March price hike. If that's not f'ed up, I don't know what is.
This example alone shows that Mel is a a-hole. He doesn't give a rat's ass about the customers!

What's with people blaming XM?

It's all been the 'takeover' of Mel, and the ridiculous salary of Howie-boy.

In the interim, XM begins to suck badly and now THIS.

I hope Charlie gets it, and makes things decent again.


HOHOO Robin I sunk a company!

So, Mel wasted everyones time (and money) to get another spectrum - and he won't sell it off to save the shareholders? BullShiznit!

Go *&#@ yourself, Mel. You do whatever you can to save the shareholders.

It makes no sense to merge 2 companies and have nothing to sell. The main reason for supporting the merger was for the additional spectrum, so....

sell it back.

The government can reauction it off and the proceeds go to Save Sirius, not XM.

...and don't tell me it can't happen! You just sell off "XM" (the spectrum) and satellites. The contracts stay with Sirius and whammo - your back in business with happy shareholders.

Sorry XM folks, but you gotta go. Your radios are worthless to us, but - - the shareholders are still in business, and Sirius lives on.

Ergen can bid for the spectrum in the open market. There are many folks who want it, so - whammo, sold.

But, again, if BK happens - EVERYTHING IS LOST.

SO it makes no sense. You do whatever you can to save Sirius shareholders. Not XM. We won the contracts, you get the spectrum (highest bidder).

Sorry XM'ers, your devices are no longer needed. You will get a coupon, for a Sirius Device. BUT LOOK ON THE BRIGHT SIDE - You still have access to Sirius. SatRadio stays in business., and the shareholders are happy.

Get an iPhone (StarPlayr is out next week).

Sirius debt and programming were in far weaker shape than the financials of XM before the merger.
Why DOJ and FCC ever approved this so called 'merger' (really a take over of XM by Sirius), ranks down there with the sleazy shenanigins of Bernie Madoff. Why anyone thought Sirius should take the 'lead' position in the merger is a mystery. The whole deal smelled to high heaven - even by Wall Street's low standards.
Mel Karmazin and his close cronies are siezing what little cash there is for themselves. They have totally decimated the staff of XM employees, they raided XM for their equipment and jettisoned their personnel and talent like used hankies.
They are now slashing almost all non-Howard, non-sports related programming. The meager music programming they are keeping, they are ditching dj's in favor of canned music programming.
The biggest losers in this whole ordeal are the XM employees that were evicted from their jobs, and the investors that watched their money evaporate in mis-guided mega-deals for MLB at XM and Howard at Sirius.
Now Sirius is arm twisting the few dj's and show hosts (Except Howard, O&A, and a few sports shows, of course) that are left to work for little or for nothing, yes, work for free, while Mel and his minions continue to draw fat salaries, and funnel what little money is left into their pet programming.
Many of their contractors haven't been paid in months. While Mel and Crew continue to draw their salaries.

good god,you MULT O&A sheep are some stupid inbreds arn't you?if you cant see whats really going on here,then just stick to your script and proceed to look like the sheep you are..

everythings mels fault..blah blah blah..ever take into consideration that the biggest fail channel "the virus" doesnt bring in any subs,considering i once heard once "the fastest growing radio program in america" and all

must be mels fault to they lost over 20 markets on terrestrial in less than a 2 yr span,
or maybe there just morning zoo clones

A coupon for a Sirius device? I am on the verge of cancelling my subscription altogether since I now have Sirius programming rather than XM's. You actually think that XM subscribers would really want a coupon for a Sirius device.

Mel ruined XM.
As for anybody who still thinks the merger was a good idea (i never was for it myself), I am sure you will be more than welcome by the Uber Fanbois over at there are quite a few poster who not only think XM is better now, but also think that the company will be strong for years to come no matter what decisions mel makes.

"Sirius debt and programming were in far weaker shape than the financials of XM before the merger"

Actually not true as sirius had negociated all their debt to longer periods and todays debt issues are all XM debt so basically without a merger, XM would have filed and sirius would be left standing--this year at least--
You can agrue format, type of channels etc. but there is a reason why smaller sirius was able to take over XM--and why a top XM executive warned about the company having a potentially fatal problem before the merger--
Either way, this sucks as it looks like, even though programming has changed for XM subs, the synergies savings were approaching $500 MILLION for 2009 and they might have had a chance to show a profit had it not been for the 2009 1 billion in XM debt--

Can anyone answer or reasonably speculate on these questions?

Setting aside acumulated debt, does SiriusXM take in enough money every month to pay the bills?

Adding in debt, how far in the hole are they on an ongoing basis? I'm asking because I'm trying to figure out whether the 'cut the big salaries' argument makes any sense - can you cut enough to right the company?

Does anyone have a reasonable handle on what the impact off losing Howard Stern would be in terms of subscribers? Because I'm older, my interest in SiriusXM lies elsewhere - I listen to the classical and jazz and blues channels and things like CNN/Patriot/CNBC/NPR.

Generally, is there an ongoing business buried in all the debt?


Scott Atkinson
Watertown NY

The part that pisses me off is these NFL, MLB, etc. contracts. Sirius/XM has to pay them to be on their infrastructure but Comca$t, TimeWarner, etc. get PAID for hosting their programming. In due time that is what is going to happen. The cable companies had to pay for content like Sirius/XM has to.

I like Both shows.

I also feel that the pirating of SXM content has not in anyway affected this.

I don't know what I will do when My Saturday night Virus programming goes away.

Maybe I can team up with Faildozer and become the Power due Post whore Brothers podcast show.

Step on any toes today?

I listen to O and A but my real secret is I am a closet Howard Fan. If the Cool kids ever found out I would be forced to eat my lunch alone in the Cafeteria.

To Bad SXM is failing at least I know my Job is safe at AOL.

People really do like me.

Lots of you people are idiots, commenting without knowing the facts. Fact #1: Mel did not sign Howard Stern, he was hired by Sirius AFTER Howard signed his deal with Sirius. Fact #2: How is it that Howard killed Sirius? He was a 'free agent' and signed a contract for great money. Wouldn't you take a tremendous offer to work with a company? He did bring over at least 2 million listeners that otherwise would not have signed up for Sirius. He might not have brought over the amount of listeners that Sirius management thought might have come over, but how is that Howard's fault? He was hired to put on an entertaining show, and he has delivered. If a company wanted to give me an insane amount of money to have fun for 4 hours, why wouldn't I take the deal?? All of the blame should be put on those Sirius executives that overpaid for content (including the NFL deal).

Why would Howard Stern want to renegotiate his contract just to save the company? If my employer gave me a contract and made bad decisions, why would I take money out of my pocket to help them by saying "sure, i'll renegotiate my contract and take less money even though I lived up to my part of the deal but coming to work for you"? It's not Howard's fault that they made poor decisions.

Can anyone tell me if this (filing chapter 11) will affect the employees who are on severance?

This is so fu*ked up !

How did Howard destroy XM? He brought listeners? How do you figure??? Oh that's right. Opie and Anthony said that so that makes it true right?

Really, now you want XM folks (who outnumber the Sirius subscribers) to get a COUPON? Yea, lets chop 60% of the subscriber base at the knees at bit further. You could kiss both of my subscriptions goodbye.

I have both, and XM was easily the better product. But that has never been important here, anyway.

You really are an idiot.

Hey Sheep Cunt. O&A's lack of terrestrial following has absolutely NO BEARING on satellite radio. XM was founded on music. That was its fan base. XM barely marketed High Voltage which later became The Virus. 20 on 20 was the most listened to channel on XM and it still had more subscribers than Sirius. O&A cost XM very little compared to what Howard cost to Sirius. Sirius sunk ad dollars and promos into Howard because they could not compete with XM in music, which is what XM did best before the merger. After the merger, music went to hell and those longtime XM listeners left. Why the hell is losing terrestrial stations even mentioned? This is about satellite radio's failures.

Although the industries and analogies differ, the results are the same with regard to the link below. It was greed and miscalculation on a grand scale. And now both companies are heading towards the proverbial black hole. Tell me how many are familiar with the place listed in the link below.

Who agrees with me on this analysis?

>> Generally, is there an ongoing business buried in all the debt?

I stopped looking at these companies financials some time ago. But not much has changed, other than the merger.

The big problems are

a) Expensive deals with carmakers, who take a substantial percentage of every subscriber's revenue.

b) Overpayment to Stern, MLB, and NFL, which attract nowhere near the number of subscribers to make them sensible content items.

c) Equipment costs are too high, so when a subscriber comes on, they have to stay a long time before they contribute margin.

d) The business model was counting on increasing subscriber #s from automakers, and with the auto sales business in the tank they're not getting enough new subs to sustain the business.

e) Music royalties are everything, and they keep going up and will for the foreseeable future.

You'll note that none of these items was materially impacted by the merger. That is, "synergies" are minimal. Firing DJs just doesn't help the bottom line very much.

These companies could have made it but they made some really bad decisions a few years ago that increased fixed costs to an unsustainable level.

They're dead meat.

When did this site become part of Wall Street Journal? Seriously, everyone has lost in the stock market.The Stock Market is gambling and sometimes you lose. We don't need to hear the constant "I'm leaving if" threats every day. They are getting as old as the Slacker and HD Shill posts (I have Slacker myself so don't come down on me like I don't know what it is.)If your going to leave just go. I'm sticking around until they turn off the music.

They can't shut down XM now. If they had kept the units seperate, they could have sold or spun them off.

Shutting down XM would mean more than half the sub base goes bye-bye. You can't force them to get new radios. The debt wouldn't suddenly disappear. The sats still exist. The only way to get rid of the debt would be to sell XM to a buyer willing to get into the radio business. Plus, it would piss off half the auto industry who used XM brand radios. There's too much of an established base

It's too late to undo the merger.

And I'm always a consumer advocate before a shareholder advocate. The consumers and mission statement of the company come before the shareholders. Listening to shareholders and thinking short-term is why this country and financials are in bad shape.

Let Chapter 11 happen and hopefully 20 million subscribers get some satisfaction.

Sorry to hear about that, I was a fool and lost $33.5K myself. Hoped and hoped and hoped but it never happened. Learned me a valuable lesson that is for sure.

Wow, I agrre with Stack Pointer.

I still beleive the fundamental idea of satelite radio was a great one, and hope it lives on, at least in some form.

Here's a real number for you: What has O&A brought to satrad.......................................
0.0!! Nothing. Zip Zero! Howard brought milions of listeners to sat rad. O&A. less that 500,000. And u blame howard? Keep listening to O&A's B.S

It was the most listened to channel the first week it came out. Why don't you do some reserch before posting comments? O&A have brought NOTHING to the satrad table. Howard's broguth listeners which is what it's about. Not what a couple of bitter Howard stern wannabee's say. All they do is talk about Howard so nerds like you can come on this site and flood it with negative things about Howard. If howard left sirius tommorow Satrad will go under. If O&A leave the corks on the bottles will pop off.

hoo, hoo, hoo robin, O&A just lost another station. hoo, hoo, hoo robin O&A can't even get ratings in New York, Hoo, Hoo, Hoo

all of you sheep have been "baaaaaaaaaaaaing" about how O&A have all of howards listeners and #1 here and #1 there..there nothing!bubba gets more subs than the clones

the virus is about as relevent as Korean radio

Hoo, ho, Hoo, Robin David lee Roth had higher raitings than O&A has. Hoo, Hoo, Hoo.

Got news for you, with or without Howard Stern Sirius XM is done for.

Actually its CBS and the Lawyers that are making them drop. They cannot do any bits anymore, not even a naked girl in studio or anything involving interns.

XM was a much better company and had triple the stock price of sirius. And then came Half a billion for howie, then Mel came and realized that sirius cant make it by itself and "merged" with xm and lost everyone and everything that made xm good to save the sinking sirius ship.

The most important question is what happens to Orbitcast if SiriusXM goes down the tubes?

Half a billion that O&A Wish they had gotten. I'm sure if O&A would have gotten the half a billion none of you would be complaining. They are so Jealous and bitter that ti kills them. They do the same show Howard has always done, and they can't get a fraction of what Howard gets.

The worst part is that they've seen eachother in public and they are very friendly to eachother. It's all radio schtick from O&A. In a time when the company is in deep crap, when there are other things to talk about. all O&A can do is continue this stupid radio bit that's wayyyyyy to old for anyone else to care except O&A marks that come on this site and comment about it.

Answer: O&A fans will kill themselves if orbitcast goes under.

Stack -

Thanks for your notes.

So what's the end game? In following the news of the last day, I read that it's unlikely the service will shut down, even if there's a bankruptcy.

I bought a few shares at 14 or 15 cents just for fun - and I'm so glad I don't have the painful problems some of the real stockholders here have - but my main interest is as a listener.

Scott A.

@themadcap: I'm honestly trying not to think about that. But it is a concern...

I do not care who you are $500 million for a talk show is just not good business. Mel even said he would not have given Stern that much. O&A don't even mention Stern that often. The feud probably isn't real though, it would not shock me to find that out.

Of course the feud is not real. It's a radio bit to get people talking. It's so lame. O&A are really funny when they'r enot talking about Howard, Bubba, or any other radio person.

i knew this was going to happen since day one...the biggest mistake done in 08' was the fucking merge of this two shity ass company....i hope mel fucking goes to jail for fruad and drops the mother fucking soap while he is there...that fucking.......fuck heat,hot97 is better...