Satellite radio on the ropes?
Because the Federal Communications Commission approved the merger of satellite radio competitors Sirius and XM not much has been said about the financial status of the new entity.
The financial troubles of each company was the driving force behind their merger, but the new Sirius XM Radio still posted a net loss of $4.88 billion mainly because of an impairment charge over the fall of the sat-caster’s stock price after its 2007 merger announcement.
The company also has nearly $1 billion in loans due next year and said it is negotiating with creditors to handle its debt. Even operating as a monopoly, the final chapter of Sirius XM is shaping up to be an ugly and potentially silent one. Time will tell, but a challenging economy doesn’t bode well for a service that charges listeners for what terrestrial broadcasters have been providing free for decades.