AfterDawn: News

Echostar in place to purchase nearly bankrupt Sirius XM

Less than a year ago, after 18 years of regulatory examination, the Sirius and XM satellite radio services completed a merger. Now it appears that the combined company may be taken over by satellite television giant Echostar.

Over the past several months the company's value has plummeted. Meanwhile Echostar has been busy buying up much of Sirius XM's $3.25 billion in debt. Now the New York Times is reporting they're planning to file for Chapter 11 Bankruptcy any time.



Under Chapter 11 they would try to work out deals with creditors to restructure their debt load while they reorganize. Getting Echostar to forgive much of it in return for control of the company would be a big step in that direction.

Written by: Rich Fiscus @ 11 Feb 2009 17:21

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• 9 comments

• ZippyDSM

  How the hell they go bankrupt?
  Did the CEOs merge it and run away with the money?

  11.2.2009 19:20 #1

• LILBUCK

  LOL I have siruis and love it. If you have 5 cents now you can buy a share as of today. This takeover is bullshat the company would be in better standing if it wasn't for the politicians(bought off by terrestial radio) that slow acting on the merge. There is no such thing as free capitalism and fair trade within the US. A new company HAS to have a few mil to grease the fat cats, if you don't good luck your Fuct.

  11.2.2009 19:47 #2

• kubapolak

  I'm a common stock holder, and most likely I'm out of some money....and I had such high hopes for their survival!

  11.2.2009 19:49 #3

• nb69

  It was 18 months , not as reported above:Less than a year ago, after 18 years of regulatory examination, .

  11.2.2009 21:11 #4

• Molinari

  Originally posted by ZippyDSM: How the hell they go bankrupt?
  Did the CEOs merge it and run away with the money?Maybe part of the reason is because customer service blows!
  I had it for years and then my debit/credit card expired, I put in a new one and it said there was a problem. I tried 4 more different cards, and it said there was a problem. I called a few times, and they gave me a case number. I never heard back. When I called again they said there was already a case number. Then I got an email saying they were sad to see me go! I was like, why must I fight to be your customer? Seems pretty fishy....

  12.2.2009 06:54 #5

• chadmorin

  Here is a hot alternative to satellite radio, on my cell phone (US Cellular) there is an option to download a service called mSpot Radio it has amost all the same programming as XM/Sirrius except Howard Stern (and who the fk cares about his $200 million dollar paycheck? There is only so much one person can listen to about lesbians anyway)
  
  Well check this out, you can stream the musci through your cell phone, activate your bluetooth and sync your phone to your car stereo (You may have to upgrade to a better car stereo for all you people still driving older car) And check this out, when I go to the gym, I put on my stereo headphones and listen to the mSpot through my phone inside because it uses cell signals not satellite, so I dont need a clear view of the sky, best of all its only $6.99 a month!!!

  12.2.2009 10:05 #6

• loubat

  I love my Sirius, and have for the past 5 years or so now. Maybe they wouldn't be on the verge of bankruptcy if the FCC hadn't wasted over a year of their time fighting the merger with obviously bogus claims of a monopoly. They needed to merge 3 years ago, finally got around to doing it, and the government made them wait another 18 months.
  
  And to the Howard-hater :) You must not have listened to Howard in the past 10 years or so. Sure he still has people of all odd-persuasions, but a lot of his 4 or 5 hours a day are spent just talking about celebrities, politics, entertainment news, their own personal lives, and more politics. I haven't even heard a Sybian (sp?) ride lately.
  
  But, to each their own! :)

  17.2.2009 13:14 #7

• Molinari

  It was kind of strange he went out of his way to bash Stern.
  He could have said that about any channel.
  "That damn chill channel is only for people coming down off of ecstacy."

  17.2.2009 18:17 #8

• rokmsokm

  I'm glad to see them file Ch.11 (if/when they do) The cable/music/movie industry has been raping us for years. It's time to stop. I'm sorry but $10 a month is ridiculous to listen to the radio.... especially when it's free.... yeah yeah I know it's commercial free.... the question is though would it be if they had the majority of listenership?

  19.2.2009 10:35 #9