Sirus/XM To Go TITSUP?

The word on the street (via the New York Times) is the two headed monster known as Sirus/XM Satellite Radio is about to go bankrupt:

Sirius XM, which never turned a profit when both companies were independent, is laden with $3.25 billion in debt. Its business model has been dependent, in part, on the ability to roll over its enormous debts – used to finance sending satellites into space and attract talent like Mr. [Howard] Stern (who was paid $100 million a year) – at low rates for the foreseeable future until it could turn a profit.The company’s success and failure are also tied to the faltering fortunes of the automobile industry, which sells vehicles with its radio technology installed and represented the largest customer base among Sirius XM’s 20 million subscribers.

Sirius XM owes about $175 million in debt payments at the end of February that it is unlikely to be able to pay.

I’m glad that I don’t have this in my car as I would be really ticked right about now. There’s no telling how this would affect subscribers, but I’m guessing that in the short term there’s likely to be no interruption to service.

More importantly though, Howard Stern is going to have to find a new platform to be the “King Of All Media” from.

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