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For all of us Sirius satellite subscribers, anyone following the news of a possible bankruptcy? Seems Sirius is struggling like many other companies today. Huge debt, low profit, and dwindling subscriber base. Its stock has plummeted from a $4 high a year ago to trading at 6 cents a share today. EchoStar is rummored to be waiting in the wings. Will be interesting to watch, considering the impact on many Bullit owners.
 

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Yeah, I saw this on the news this morning. So does that mean that XM is going down with them, since they are now one??? We have Sirius in the Bullitt, and XM in the 05......


Mike and Karen
 

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They may just file for reorganization and continue to operate as usual, hopefully.

**Sirius XM is working with bankruptcy lawyer Mark Thompson of Simpson, Thatcher & Bartlett, and Joseph Bondi, a restructuring expert, to set up a Chapter 11 filing that could come in the next few days, The New York Times reported on its Web site Tuesday evening, citing an unnamed person it described as familiar with the situation.

The Wall Street Journal mentioned the same names, citing two unnamed persons close to the matter, in its online edition.

A Sirius XM spokesman declined to comment Tuesday night.

Documents and analysis are almost finished, the Times said.

The Journal reported this week that Charlie Ergen, head of satellite provider Dish Network (DISH), had acquired most of a tranche of $174.59 million in Sirius XM debt that matures Tuesday, and that Sirius turned down Ergen's unsolicited bid to buy the company.

A Sirius XM bankruptcy could pressure Ergen to make a formal offer to acquire the company, the Times said.
 

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Yeah, I just saw this as well.....



After sticking with Sirius XM (SIRI) through ups and downs, and downs, and more downs, shareholders are finally ditching the company in droves.

The stock is down nearly 50% Wednesday to just 6 cents a share, and there's a good reason why: The company has two options at this point, and both leave shareholders with nothing.

Customers, at least, shouldn't see interruptions in service. But prices could go up. And big names like Howard Stern could disappear as the company overhauls its contracts.

Sirius XM's biggest problem is $3.25 billion in debt that the company can't manage, particularly in this tight credit market. About $175 million is due this month -- part of $1 billion total due in 2009 -- and Sirius probably won't be able to pay.

The second problem is named Charlie Ergen. He's the boss at satellite TV company EchoStar (SATS), which has been stealthily buying up Sirius' debt (about $400 million at this point, plus the $175 million due this month). That debt gives him a lot of power, and he wants to take over the company.

So here's where shareholders get screwed. The company is considering a bankruptcy filing, in which case shareholders get nothing.

Then there's Option No. 2: Ergen's proposal to inject several hundred million dollars into the company and restructure its debt in return for control. Sounds great, except for one thing: he won't buy out existing shareholders. That likely means Ergen will swap his debt for equity, diluting shares down to nothing.

So what does all this mean for customers? Radio service will probably continue. The bad news is that a bankruptcy allows the company to hit the reset button in several areas. It might raise prices, even after promising that it would not.

And the company could get out of expensive contracts, most notably its deal with Howard Stern. The shock jock has already talked about leaving when his contract ends next year. But losing Stern would be disastrous, since he brought a legion of loyal fans into satellite radio.

So yeah, Sirius XM will limp along, and it still has the potential to be an amazing, profitable business one day. That's the reason shareholders have stuck it out for so long.

But loyalty doesn't get rewarded in this case. Sirius XM is about to make some hard decisions, and shareholders could be sacrificed along the way.
 

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Hopefully this means they'll shed the weight, and come out with something close to a $129 lifetime subscription to one head unit.....I'd buy that.
 

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Car Whisperer
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the bump on the back may need to go afterall.
 

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jymontoya said:
Hopefully this means they'll shed the weight, and come out with something close to a $129 lifetime subscription to one head unit.....I'd buy that.
Me too. I think its either 299 or 399 for the lifetime. I know they are hard pressed for some money. I bet I get 1 call every 2 weeks from them to resubscribe.

Back in 97-99 when Napster was in its heyday I STOLE :badgrin: err downloaded all the music I could never afford. So I have 6 cds full..700+songs in my changer.

It's hard to pay for music when I have all the music I like anyway. 95% of the new music they put out nowadays is **** anyway.
 

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I did not get one on the 08 but Molly got it on her new Escape. I do like it since you don't have to change stations or CDs no matter how far you drive. The new file reading mp3s are great too and that is whats in the Bullitt. Over 100 songs on one cd. It works good but I can't see paying for radio.
 

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very nice, I hope they get their asking price.

A worthy charity indeed.
 

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Well now I am guessing the pay early bill to lock in pricing was just an attempt by Sirius/XM to raise money? I am paid up for several more months and I recieved an early bill claiming to save me money by paying early and locking current pricing, sounded fishy to me. Now it makes sense!
 

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Rob
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BUWITT 3158 said:
Well now I am guessing the pay early bill to lock in pricing was just an attempt by Sirius/XM to raise money? I am paid up for several more months and I recieved an early bill claiming to save me money by paying early and locking current pricing, sounded fishy to me. Now it makes sense!
I received the same bill my friend. MSN's home page has an article about it today. I'm gonna check it out. Here's the link. http://blogs.moneycentral.msn.com/t...-xm-shareholders-could-soon-have-nothing.aspx
 

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We pay early, company is bought out or taken over what happens to us? I think they are trying to raise funds to stop this hostile takeover attempt. I think I will wait this out! I have time lets see what the courts and bankers do!
 

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If you call them and tell them you want out, they will pro-rate your card back with what they owe you.
Then wait approx. 2-3 weeks until they call you back and beg you to come back at half the cost!
Play them against themselves. Works every time.
 

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I was considering resubscribing, as my free time ran out in Oct (and I quite miss it), but now I am going to wait and see how this shakes out.
 

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I like Sirius, I listen to "Classic Rewind" most of the time, really takes me back to the late 70s...and no commercials! I also listen to some of the Jazz. I listen to it both in the car and at work over the net.

What I don't like is that black hunk of plastic on the trunk lid, every time I look in the rear view mirror I see it.
 
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