Sirius XM is Looking to Have Some Serious Problems

By: Jody Volet

Sirius XM, the only radio satellite people have, is going through some serious money problem. They are highly in debt right now and may be looking to file for bankruptcy. This could cause some problems for their shareholders and off course Howard Stern himself.

There are over 20 million people who are subscribers to Sirius XM and they have nothing to worry about. There is a bigger chance that someone will take over what Sirius has created and keep on with the process. They will have to think of ways to make some sort of money, but listeners will still have their satellite radio.

The bad news comes for the investors. With the company in such bad debt there is no doubt that if Sirius has to file for bankruptcy then the investors will be wiped out. The only other option for Sirius right now would be to sell the company. They have already had an offer from Ergen and they turned it down. DirecTV could buy them, but CEO Mel Karmazin, is not looking to sell. He believes they can get out of this somehow. He has no interest in having someone buy him out and work for them. He would prefer for someone to give him the money to help the company out and be in the background.

Since Karmazin is not looking to sell then his fate will be left up to the creditors. Maybe he will end up selling, but who knows. What I don’t get is how many people really use XM and say Sirius doesn’t file bankruptcy, what are they going to do to improve their debt and company. They have a lot to work on and a lot of decision making to be done in the next couple of weeks.