It hasn’t been long since the two satellite providers merged, but SiriusXM is already talking about bankruptcy.
The company suffers from massive debt, $175 million of which is due tomorrow, an upcoming renewal of Howard Stern’s $500 million contract, and increasing competition from cell phone and internet music providers, even in cars.
The New York Times reported less than a week ago, that the company has had it’s team of lawyers working on a bankruptcy filing for a while now.
With $3.25 billion in total debt, the company is facing a tough situation. Satellite TV company EchoStar, has expressed an interest in the company, but SiriusXM has rebuffed takeover talk from the company. Nonetheless, EchoStar bought up quite a lot of the outstanding debt owed by SiriusXM and may ask the court for control should the company file chapter 11.
The filing, if it comes, should not affect subscribers. If any services are cut, they are likely to be the high dollar ones such as Howard Stern and Martha Stewart.