Sirius XM shares down to 97 cents
Posted
Sep 10 2008, 02:58 PM
by
Kim Peterson
Rating:
Shares of merged sat radio company Sirius XM have plummeted 15% today to just 97 cents. That's because the company delivered a double dose of bad news for 2008: it will have a wider loss and slower subscriber growth than many analysts expected.
Sirius said it only expects to have 1 million more subscribers between now and the end of the year. It has 18.5 million today. But CEO Mel Karmazin said the forecast was "very, very conservative."
Analysts are starting to wonder if people lost interest in satellite radio in the 17 months it took the feds to approve the merger of Sirius and XM Radio.
Then there's the debt concern. Next year, Sirius must refinance $1.05 billion in debt that comes due.