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Sirius XM shares down to 97 cents

Posted Sep 10 2008, 02:58 PM by Kim Peterson
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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.

Comments

 

I am a subscriber to sirius, and with a 45 min to 1.5 hour commute it is a lifesaver.  I am no expert, however, right now I think they are running basically two separate companies.  I would think that once they are able to make one company (instead of two locations, channels, etc.)  they will be able to make some money.  It will just take some time.  What Greg F describes doing, would be to ruin what makes Sirius xm such a great service.

I am a subscriber to XM radio and have heard increasing numbers of ads,talks shows, DJ's, etc...on channels that should just be music only.  The music is getting very limited and I hear the same songs over and over and over again in such a short amount of time.  I subscribed because I wanted no ads, no DJ's, no talk shows,and a variety of music ,etc... It is becoming more commercialized everyday.

If this continues I may drop satellite radio.

Do you think just maybe this is the reason the numbers are down? The answer is yes. That and downloading your own music, commercial free, on your IPOD.

"cut out specialized programming - think the shock jock?"  You silly goose, what good would it do to get rid of Howie now? They should at least wait until his contract is up, because either way they will have to pay him, so they make the most out of the old horse face before they ship him off to the glue factory. As for XM's shock jocks (Opie and Anthony), what kind of financial modeling do you do? Why would any company gets rid of their #1 program? Especially one that not only draws more listeners than any other channel (including Stern's drivel, and the a channel of clucking hens that XM had to give up their first born for to put Oprah's name on), but also is able to receive free advertising via their nationally syndicated terrestrial radio show, and allows for commercials to bring in additional advertising income that the "commercial-free" music channels cannot. I think Sirius XM's plan to have either different price packages or additional fees for certain channels (in much the same way cable and satellite providers do) would help by allowing the dolts to have the generic music channels they want and forcing those of us who are only wanting the "special programming" to pay extra for  that content would help the company weed out the weaker programming that does not generate the subscriptions to keep it on the platform.

I love Sirius!!!!!!!!!  This will rebound as they become more effiecient!!!!!  Love the programming!~

The shock jock is the reason I won't buy. Get rid of him and count me in.

I think you are right. The "Shock Jock" should go. He isnt as entertaining as he used to be on terestrial radio. He is way over paid. But please keep Playboy radio.Share all the sports channels and news radio. I have been a lifetime subscriber to Sirius and i love it

Very dissapointing how the mgtmt handled the merger. PAID STERN too much and now it looks severely weakened. Will they consoildate programmiing in the near ternm as I have SIRI stilletto and Direct TV- XM which should be same or more consistent in programming.  WOW Mel put the cocktail down and lets start cracking the stock ids diminished big time

I let mine go yesterday.  Will not pay that much for the good and the bad.   Now if I was a trucker    I wouldnt be without it,  But they do have a lot of replays on the stations I was listening to.  JDial

Lower prices=more customers.

I have to laugh at people who say that because Howard is on satellite they won't buy into it! How many channels are there to listen to? I don't like Opra, so I don't listen to her, change the channel! If you want to deprive yourself of a good thing because of a certain "shock jock" then you may have issues. Sirius and XM are blazing a trail...nobody said that it would be easy or cheap.  

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