Some of you may be following what’s happening with Sirius XM Satellite Radio.
I’m a long-time subscriber, shareholder, and believer in the business model, though it looks as though I could be sitting on a lonely planet :0.
Their stock has dropped 96% of its value since last July’s merger between the firms. They have about 3.2B in debt, with 175MM maturing next week, and a couple other big tranches due this year. Stock closed at $.06/share yesterday. On the bright side, Revenue run is nearly 1.9B and subscribership more than doubled over the last year with nearly 19M listeners!! But they don’t seem to have a path to profitability and marketing and programming costs are growing rapidly. Management is perceived by many to be a major issue.
They are considering bankruptcy options and have also been approach by mogul Charles Ergen to do a deal for debt and cash in exchange for control of the company. Mentioned in the WSJ today.
I sure hope they make it! I listen all the time, especially Hearts of Space on SPA, weeknights at 8pm PST spacefans!
