It’s beginning to look like the end for satellite radio.
News off the wires is reporting that the newly merged Sirius/XM is looking at filing Chapter 11 bankruptcy as soon as the end of this week. This, according to a published report from the New York Times.
Last week, The Wall Street Journal reported EchoStar holds about $400 million of Sirius/XM debt and the satellite radio company, led by Mel Karmazin is scrambling to raise $175 million by a February 17th payment date to fend off a possible takeover threat and avoid default.
Sirius/XM has nearly $1 billion dollars in debt due this year, prompting analysts to doubt its future given the sluggish credit market and a steep drop in car sales, the biggest source of new satellite radio subscribers.
This news is not surprising.
Unaccounted for in the problems is new technology that would allow cars to be used as “wi-fi” hot spots. That would enable individuals to listen to radio on the Internet in there own cars.