Troubled Sirius XM Radio announced Tuesday, following reports, that it will accept an investment from cable giant Liberty Media.
The investment, which will save the satellite radio company from bankruptcy or a hostile takeover, will take the form of $530 million in loans in exchange for an equity stake.
The first phase of the investment will consist of a $280 million loan, $250 million of which will be funded immediately on Tuesday, a statement from Sirius XM noted. The second phase, a $150 million loan, will be aimed specifically at the company's XM Satellite Radio subsidiary. Liberty, which owns … Read more
Sirius XM Radio's chief executive may lose his job if the company chooses to file for bankruptcy protection.
A group of creditors tells The Wall Street Journal that it will seek the removal of CEO Mel Karmazin if the company chooses bankruptcy over a deal with an investor that would allow it to remain solvent.
"Creditors will act quickly and definitively if they perceive that management is acting in their own interest and not in the best interest of the estate," Edward Weisfelner, a partner with Brown Rudnick, the law firm representing the creditor group, told the … Read more
Sirius XM Satellite Radio, the financially troubled radio service, is busy preparing for a possible bankruptcy filing, according to a published report.
Sirius is staring at a significant debt crisis. According to a story that appeared on Yahoo finance, financial research firm, Moody's, "thinks there's a 'high likelihood' that Sirius will fail to repay or refinance its debt in 2009."
Sirius' debt comes due on Tuesday, according to the … Read more
Sirius Satellite Radio has a lot on its plate. Shock jock Howard Stern is already making noises about leaving after his contract expires in a couple of years, the stock price is in the tank, and the company has huge debt.
All of that shouldn't matter to subscribers, of which I am one. But the frequent signal dropouts are really getting out of hand.
I had similar problems in the early days, but after a while, the dropouts became rare. Months would go by without signal interruptions, but about six months ago, the off-and-on signal problems returned.
Sometimes, the dropout lasts just a few seconds but occurs many times an hour. My Sirius home radio hasn't budged since I first got it many years ago, and my antenna is pretty much in the same place it has always been, but lately, the signal regularly disappears for minutes at a time before sputtering back to life. … Read more
Internet and mobile services are expected to score against handheld video game players and satellite radio amid an economic recession, according to results from a Forrester Research survey released Monday.
According to the results, 51 percent of North America consumers surveyed said they planned to curtail technology spending in the coming year, due to the economy. And areas expected to take the greatest hit include handheld video game players, followed by satellite radio, smart phones, video game consoles, and portable GPS devices.
The report noted:
While no device is immune from consumer spending cuts, new devices such as satellite radios … Read more
Sony's XDR-F1HD HD Radio has developed a real buzz among my audiophile pals; on second thought maybe buzz isn't the right word. It's the quietest, noise-free radio I've ever used.
These guys can be real snobs and only listen to ultra-high-end components, and some wouldn't be caught dead using mainstream gear with their hi-fis, and yet they're all going ga-ga over the Sony. We're all thinking it's too good to be true.
I originally heard about the Sony from Steven Stone, a writer friend, and then from an engineer at an American high-end audio company known for making awesome tuners that sell for thousands of dollars. The engineer was positively gushing about how good the XDR-F1HD is; not just that it sounded great, but also because it pulls in tough-to-receive analog stations with lower noise and distortion than tuners that sell for big bucks. You can read my full CNET review here.
I rushed right out and bought an XDR-F1HD from Amazon, and sure nuff, it's true, the little Sony is no baloney. Analog FM stations came in like gangbusters, clean as a whistle, and HD stations, like my favorite jazz station WBGO had "CD quality" sound. That phrase is tossed around a lot, but this time it's for real. I listened to WBGO with the Sony over my high-end system with Magnepan 3.6/R speakers, and the sound was amazing. It's day and night better than what I get from Sirius Satellite Radio, which is almost unlistenable over those speakers. … Read more
Quite a bit has happened to satellite radio over the past year. First, we had two companies vying for your dollars and then, in a ridiculously long merger process, the two companies finally became one.
Since then, the new Sirius XM has tried to find its footing in a world where terrestrial radio still reigns supreme and advertising dollars aren't floating around as much as they did last year. And to make matters worse, the company is forced to pay Howard Stern $100 million per year on a total subscriber base of about 19.1 million by the end of the year -- not the kind of numbers that would attract advertisers, let alone shareholders.
Following that, we can't forget that the company's share price is at a woeful $0.26 and $1 billion in debt is coming due in 2009 as the company posted a huge $4.88 billion loss. Sirius XM is working on refinancing and recently reduced a $300 million note to $210 million, but its troubles persist.
And although it sounds like the company is facing enough issues already, this whole discussion has left out an important piece of the puzzle: automotive sales are declining at a rapid rate, there are no signs of that slowing down next year, and America's three major car manufacturers -- Ford, Daimler-Chrysler, and GM -- are hoping the U.S. government will bail them out. And considering most people listen to Sirius XM Radio in the car, the company is feeling the effects.
So what can really be done? Should Sirius XM dump Howard Stern and other prominent radio personalities and stick to music? Should Sirius XM call it a day and try to sell its operation to the highest bidder? Or should Sirius XM forge ahead with its current strategy and hope against hope that everything will be OK?
To answer those questions won't be easy. But at this point, I simply don't know how Sirius XM can survive unless it does something drastic.… Read more
If satellite radio has a corner on any market, it's in the car, and with the increasingly narrow selection offered by terrestrial radio in many areas, it's no wonder. But for those who want to listen to Sirius or XM at the gym, in the train, or on the streets, the selection is a bit more limited, namely because many portable receivers aren't as adept at picking up satellite signals due to the small size of the units, and thus, their antennae.
With the Inno XMP3 for XM, Pioneer aims to offer the most compact device while … Read more