With their backs against the wall, Sirius/XM Radio found a savior in Liberty Media’s DirecTV.
The satellite television operator will lend $530 million to the satellite radio provider to keep the company afloat. It also blocks a bid for control by DirecTV’s rival, Dish Network.
If a deal wasn’t in place soon, Sirius/XM could have declared bankruptcy as early as today.
The company found itself on the brink of disaster when the credit markets dried up and auto sales plunged, a critical factor for Sirius/XM, because many new subscribers buy the service in package deals with new cars and trucks.
The company isn’t out of the woods, yet. They still must restructure and fight off other technologies for control of the broadcast market.
This is just a calm before the storm.