This article was published 15 years ago

Sirius XM to file for bankruptcy?

The New York Times is reporting that the trouble satellite radio company is mulling plans to file for bankruptcy, leaving some to speculate that EchoStar, which owns Dish Network, could swoop in and buy Sirius XM at an incredible price.

“But now Sirius XM, the satellite radio company, has problems with much bigger price tags”, reports Andrew Ross Sorkin and Zachery Kouwe from the New York Times.  “It has hired advisers to prepare for a possible bankruptcy filing, people involved in the process said.”

Continuing on: “Sirius XM’s problems could pave the way for a takeover by EchoStar, the TV satellite company, which has bought up Sirius XM’s debt. Mr. Karmazin has been locked in talks with EchoStar’s chief executive, Charles W. Ergen, over Sirius XM’s options, people involved in the talks said. The men are said not to get along, these people said, and Mr. Karmazin had rebuffed Mr. Ergen’s takeover advances before.”

Even if both sides aren’t getting along, EchoStar is buying up debt from the company and can swoop in and buy the company.  I blogged about this last week and the story is starting to fall into place.