Sirius Satellite Radio

Sirius Satellite Radio is a satellite radio company based out of New York City. The company has studios in Los Angeles and Memphis, and is the leading satellite radio organization in the United States by subscriber-base.

Reports on February 10, 2009 stated that Sirius's management considered filing bankruptcy because of debts coming due later in the month.New York Times: Sirius XM Prepares Bankruptcy Filing (February 10, 2009) On February 16, 2009, as the deadline for the first debt repayment loomed, several media sources said that a deal was close to being completed for Liberty Media Corp to buy into Sirius.Financial Times: Sirius XM weighs up Liberty offer (February 15, 2009) The same night, creditors of Sirius threatened to oust CEO Mel Karmazin if he did not find an investor.The Washington Post: Sirius Debt Holders May Target Karmazin (February 16, 2009)

Business Model and Background

The Sirius business model has been to stock programming with household names. Howard Stern was the company's first major deal, offering Stern $100 million in compensation. Also, the radio company offers an array of sorts programming striking a deal with the NFL and NBA.

The company has three satellites orbiting space, RadioSat 1, RadioSat 2, and RadioSat 3.

Sirius XM Merger

The company announced in 2008 that it would be providing an internet subscription which will include 78 of its 135 channels. On March 24, 2008, United States Justice Department approved a merger that would combine competitor XM Satellite Radio with Sirius, the FCC approved the merger by one vote on July 25, 2009. However, numerous conditions, including penalty fees and price caps, were instated. New York Times: Justice Dept. Approves XM Merger With Sirius (March 25, 2008) Washington Post: Satellite Radio Merger Approved (July 26, 2009)

On The Brink Of Profitability

Since the merger of Sirius Satellite Radio and XM Satellite Radio in July of 2008, CEO Mel Karmazin has been working tirelessly to cut costs and maximize the synergies of both companies. In the 4th quarter of 2008 and again in the first quarter of 2009, Sirius XM Radio Inc posted its first ever back to back EBITDA positive quarters. Anyone not involved in the stock market may not care about this, but it basically means that Sirius XM is about to become a profitable company and they will be around for a LONG, LONG time.