Sirius Radio may fold

[onetooloud]

Moody's investers service predicts that sirius satellite radio may not be able to weather the current eco times.

Thier stock prices are down 96% and has yet to become profitable even after a meger with XM radio.

It is felt that sirius will likley be unable to repay debt in 2009.

They could be swallowed up by other firms in satellite radio.

[f.sciarrillo]

I knew something of the sort would happen. Their stock has been dropping like a stone. If anything I look for xm to just dissolve the name and go from there. Besides, in recent years, xm has become better ...

It's the same way with dish network. There is talk, behind doors, about them merging with directv. If you look at xm and directv, they just have a better marketing campaign and they both seem to do better all around as far as updating their services to go with the times.... Compared to them Sirius and Dish Network are second hand.

[JayBird]

I hear that. I bought $1000 worth of stock three years ago at $6.87 a share. It had peak that year at over $9.00. Then some law suits took place regarding some old tapes from the Howard Stern show. Those holding the tapes dropped the law suit and gave Howard his old tapes. However...the stock never recovered. This year the stock was as low as $.38 a share I think. My annual stock report had the stock at $1.38 when the report was issued to me. I had just planned to let my money ride out this wave, but if the company folds...oh welll...there goes $1000 down the drain. I still think Sirius is the best thing in the world and I highly recommend this to anyone who can afford it.

[Bloodsong]

i LOVE my Sirius radio. i'll be crushed if it goes under...

[DirtySanchez]

i LOVE my Sirius radio. i'll be crushed if it goes under...

You'll still have satellite radio, just a different name. Yahoo news had a list of 15 companies that were likely to fold this year. Here they are:

Rite Aid. (Ticker symbol: RAD; about 100,000 employees; 1-year stock-price decline: 92%). This drugstore chain tried to boost its performance by acquiring competitors Brooks and Eckerd in 2007. But there have been some nasty side effects, like a huge debt load that makes it the most leveraged drugstore chain in the U.S., according to Zacks Equity Research. That big retail investment came just as megadiscounter Wal-Mart was starting to sell prescription drugs, and consumers were starting to cut bank on spending. Management has twice lowered its outlook for 2009. Prognosis: Mounting losses, with no turnaround in sight.

Claire's Stores. (Privately owned; about 18,000 employees.) Leon Black's once-renowned private-equity firm, the Apollo Group, paid $3.1 billion for this trendy teen-focused accessory store in 2007, when buyout funds were bulging. But cash flow has been negative for much of the past year and analysts believe Claire's is close to defaulting on its debt. A horrible retail outlook for 2009 offers no relief, suggesting Claire's could follow Linens 'n Things - another Apollo purchase - and declare Chapter 11, possibly shuttering all of its 3,000-plus stores.

Chrysler. (Privately owned; about 55,000 employees). It's never a good sign when management insists the company is not going out of business, which is what CEO Bob Nardelli has been doing lately. Of the three Detroit automakers, Chrysler is the most endangered, with a product portfolio that's overreliant on gas-guzzling trucks and SUVs and almost totally devoid of compelling small cars. A recent deal with Fiat seems dubious, since the Italian automaker doesn't have to pony up any money, and Chrysler desperately needs cash. The company is quickly burning through $4 billion in government bailout money, and with car sales down 40 percent from recent peaks, Chrysler may be the weakling that can't cut it in tough times.

Dollar Thrifty Automotive Group. (DTG; about 7,000 employees; stock down 95%). This car-rental company is a small player compared to Enterprise, Hertz, and Avis Budget. It's also more reliant on leisure travelers, and therefore more susceptible to a downturn as consumers cut spending. Dollar Thrifty is also closely tied to Chrysler, which supplies 80 percent of its fleet. Moody's predicts that if Chrysler declares Chapter 11, Dollar Thrifty would suffer deeply as well.

Realogy Corp. (Privately owned; about 13,000 employees). It's the biggest real-estate brokerage firm in the country, but that's a bad thing when there are double-digit declines in both sales and prices, as there were in 2009. Realogy, which includes the Coldwell Banker, ERA, and Sotheby's franchises, also carries a high debt load, dating to its purchase by the Apollo Group in 2007 - the very moment when the housing market was starting to invert from a soaring ride into a sickening nosedive. Realogy has been trying to refinance much of its debt, prompting lawsuits. One deal was denied by a judge in December, reducing the firm's already tight wiggle room.

Station Casinos. (Privately owned, about 14,000 employees). Las Vegas has already been creamed by a biblical real-estate bust, and now it may face the loss of its home-grown gambling joints, too. Station - which runs 15 casinos off the strip that cater to locals - recently failed to make a key interest payment, which is often one of the last steps before a Chapter 11 filing. For once, the house seems likely to lose.

Loehmann's Capital Corp. (Privately owned; about 1,500 employees). This clothing chain has the right formula for lean times, offering women's clothing at discount prices. But the consumer pullback is hitting just about every retailer, and Loehmann's has a lot less cash to ride out a drought than competitors like Nordstrom Rack and TJ Maxx. If Loehmann's doesn't get additional financing in 2009 - a dicey proposition, given skyrocketing unemployment and plunging spending - the chain could run out of cash.

Sbarro. (Privately owned; about 5,500 employees). It's not the pizza that's the problem. Many of this chain's 1,100 storefronts are in malls, which is a double whammy: Traffic is down, since consumers have put away their wallets. Sbarro can't really boost revenue by adding a breakfast or late-night menu, like other chains have done. And competitors like Domino's and Pizza Hut have less debt and stronger cash flow, which could intensify pressure on Sbarro as key debt payments come due in 2009.

Six Flags. (SIX; about 30,000 employees; stock down 84%). This theme-park operator has been losing money for several years, and selling off properties to try to pay down debt and get back into the black. But the ride may end prematurely. Moody's expects cash flow to be negative in 2009, and if consumers aren't spending during the peak summer season, that could imperil the company's ability to pay debts coming due later this year and in 2010.

Blockbuster. (BBI; about 60,000 employees; stock down 57%). The video-rental chain has burned cash while trying to figure out how to maximize fees without alienating customers. Its operating income has started to improve just as consumers are cutting back, even on movies. Video stores in general are under pressure as they compete with cable and Internet operators offering the same titles. A key test of Blockbuster's viability will come when two credit lines expire in August. One possible outcome, according to Valueline, is that investors take the company private and then go public again when market conditions are better.

Krispy Kreme. (KKD; about 4,000 employees; stock down 50%). The donuts might be good, but Krispy Kreme overestimated Americans' appetite - and that's saying something. This chain overexpanded during the donut heyday of the 1990s - taking on a lot of debt - and now requires high volumes to meet expenses and interest payments. The company has cut costs and closed underperforming stores, but still hasn't earned an operating profit in three years. And now that consumers are cutting back on everything, such improvements may fail to offset top-line declines, leading Krispy Kreme to seek some kind of relief from lenders over the next year.

Landry's Restaurants. (LNY; about 17,000 employees; stock down 66%). This restaurant chain, which operates Chart House, Rainforest Café, and other eateries, needs $400 million in new financing to finalize a buyout deal dating to last June. If lenders come through, the company should have enough cash to ride out the recession. But at least two banks have already balked, leading to downgrades of the company's debt and the prospect of a cash-flow crunch.

Sirius Satellite Radio. (SIRI - parent company; about 1,000 employees; stock down 96%). The music rocks, but satellite radio has yet to be profitable, and huge contracts for performers like Howard Stern are looking unsustainable. Sirius is one of two satellite-radio services owned by parent company Sirius XM, which was formed when Sirius and XM merged last year. So far, the merger hasn't generated the savings needed to make the company profitable, and Moody's thinks there's a "high likelihood" that Sirius will fail to repay or refinance its debt in 2009. One outcome could be a takeover, at distressed prices, by other firms active in the satellite business.

Trump Entertainment Resorts Holdings. (TRMP; about 9,500 employees; stock down 94%). The casino company made famous by The Donald has received several extensions on interest payments, while it tries to sell at least one of its Atlantic City properties and pay down a stack of debt. But with casino buyers scarce, competition circling, and gamblers nursing their losses from the recession, Trump Entertainment may face long odds of skirting bankruptcy.

BearingPoint. (BGPT; about 16,000 employees; stock down 21%). This Virginia-based consulting firm, spun out of KPMG in 2001, is struggling to solve its own operating problems. The firm has consistently lost money, revenue has been falling, and management stopped issuing earnings guidance in 2008. Stable government contracts generate about 30 percent of the firm's business, but the firm may sell other divisions to help pay off debt. With a key interest payment due in April, management needs to hustle - or devise its own exit strategy.

[PanzerFaust]

I hear ya about Sirius being the shit... What'a world we live in that I can drive for 5 hours and listen to the same station... My CD player has had a CD stuck in it for over a year and I could care less with my Sirius....

[moxham123]

Here is a list of some of the major national companies that went out of business in 2008 and continuing into 2009. Some of them were bought up by other companies but most are gone completely. There are numerous regional and local businesses closing up too.

Bombay Co.
Lehman Brothers Investments
Bear Sterns Investments was bought out by J. P. Morgan Chase & Co.
Aloha Airlines
Skybus Airlines
Value City Department Stores
ATA Airlines
Champion Airlines
Linens 'n Things
Steve & Barry's
Lillian Vernon Corp.
Sharper Image Corp.
KB Toys, Inc.
Mervyns Department Stores
Circuit City
Woolworth's Group Department Stores British Division
Washington Mutual Banks
Alltel was bought out by Verizon
Citigroup was bought out by Wells Fargo Banks

[Eldorado]

shit.

[JayBird]

Sirius announced today that they may file bankruptcy as early as this coming Tuesday

[f.sciarrillo]

^^ Good bye Sirius. At least we have to put up with Howard Stern anymore ...

[RFBuck]

I've heard that not only Charlie Ergen is interested in the company, but someone else as well (can't remember). I'm sure they recognize it's a good product and want to save it.
While I'm a devout Howard Stern fan, I think their investment in him was risky and cost them dearly. I think they assumed that if they made the move, people would come in droves but not enough made the move.
It can still be saved...and I'm praying it does.

[Feelgood]

I would actually like to see Sirius stay around. I don't listen to it or own one but I like the product and what it offers.

[onegunguitar]

^^ Good bye Sirius. At least we have to put up with Howard Stern anymore ...

No one said you had to put up with him in the first place

[f.sciarrillo]

^^ Good bye Sirius. At least we have to put up with Howard Stern anymore ...

No one said you had to put up with him in the first place

True, true

[DrumAndDestroy]

i'd take stern over a good majority of the channels on satelite radio

[metalchurch]

Thats sad to hear, because I know alot of people really enjoyed Sirius. I had the stations on my TV, but in my car or at home I always opted to listen to Mix Cd's of my own.
I have around 30 or 40 mix cd's, and within that, there's around 3 or 4 per genre of music.
It doesnt seem like much variance, but it really is.
I choose what I listen to according to my mood of the day, or if I get a band stuck in my head, then I'll pull out their whole back catalog and listen to them for a week straight.
I always called it my "band of the week", but that's a futile cover story for my OCD
I'm sure there are some of you, who get obssessed over a band, whether it's to learn a song, or revisit the past, or you're reminded of them, whatever the reason... I do know that my music really is my life and it's a life style for me although I dont dress the part/live up to the stereo type or what have you.


I boycotted radio years ago and I kinda lumped satellite radio in with that. I just like having control over my stereo and only listen to what I want and when I want, as opposed to listening to 1 song and then 3 or 4 that I dont like...never cared for those odds.

The Classic Rock stations in my opinion are the only ones that I like really.
I liked "Hair Nation", and "Buzzsaw" (I think that's the one with Death/Thrash Metal on it??)

Mandatory Metallica! Hahaha! Anyone remember that weekly radio show from like 12 -13 years ago? I lived for "Friday night @ 10pm"

[Banned]

^^ Good bye Sirius. At least we have to put up with Howard Stern anymore ...

Howard Stern addressed the financial concerns swirling around his employer on his show yesterday morning. "I'm not concerned. I think satellite radio is great and will be a successful business and it will survive," Stern said, according to Reuters. He described the ongoing negations as "a game going on and it's for billions of dollars." Stern added, "As long as someone is paying our salary, we're here and I believe we'll get paid and that satellite radio will be here."

[songsmith]

Yeah, I doubt it goes off the air anytime soon. The Stern thing puzzled me, though. The King of All Media was only on a few terrestrial stations and a poorly-rated low-tier cable show before this. How long can you milk cast drug overdoses and describing strippers while they do wierd stuff on-air? He used to actually be funny once. Not in the last 2 decades, mind you, but once.--->JMS

[f.sciarrillo]

Howard Stern was funny for about 5 minutes, after that he became annoying ..

[bfoust]

My auto loan's bank just got bought by a European bank.. fun times.

[Bag]

Yeah, I doubt it goes off the air anytime soon. The Stern thing puzzled me, though. The King of All Media was only on a few terrestrial stations and a poorly-rated low-tier cable show before this. How long can you milk cast drug overdoses and describing strippers while they do wierd stuff on-air? He used to actually be funny once. Not in the last 2 decades, mind you, but once.--->JMS

I love the Stern show. It's as good or better than it's ever been. I guess he's been milking it for 25 years or so.

[onegunguitar]

Yeah, I doubt it goes off the air anytime soon. The Stern thing puzzled me, though. The King of All Media was only on a few terrestrial stations and a poorly-rated low-tier cable show before this. How long can you milk cast drug overdoses and describing strippers while they do wierd stuff on-air? He used to actually be funny once. Not in the last 2 decades, mind you, but once.--->JMS

I love the Stern show. It's as good or better than it's ever been. I guess he's been milking it for 25 years or so.

I agree with ya Bag.I spend alot of hours in a truck and Monday thru Thursday mornings go much better when his show is on. When he's off for vacation or whatever it sucks!

[JayBird]

Just because they are filing bankruptcy doesn't mean they are done with. They already have buyer(s) interested. They will restructure the company and eliminate unnecessary expenses, can djs that suck or have lower ratings, remove some high end employees, possibly increase product cost, etc.

Sirius is the second largest "subscription" company in the United States. Comcast is the only company out earning them.

[JayBird]

Over the weekend an investor buys 40% ownership of SIRIUS/XM. The company pulls in over 2 BILLION annually in subscriptions and radio purchases. With this investor purchasing a large chunk of ownership and the annual cash flow, SIRIUS/XM is no longer looking at bankruptcy!!!

[Bloodsong]

(sigh of relief)