Submitted by Yi-Wyn Yen02.10.2009
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This prediction is closed and has been judged.
Judgment made on April 1, 2009: Sirius XM struck a deal with Liberty Media to stay afloat. As a result, Sirus did not announce the company was acquired. The community correctly judged this forecast. -- The Industry Standard
irius XM Radio is in danger of going bankrupt. After Sirius merged with rival satellite radio company XM last July, the company has been struggling to refinance its debt when the credit markets started to freeze up in the fall. The Wall Street Journal reported that satellite mogul Charles Egen made an unsolicited offer to buy Sirius, which Sirius CEO Mel Karmazin rejected late last year.
Egen is determined to take control of Sirius. Sirius can't pay back its debt. So Egen's satellite TV company, Echostar, bought up most of Sirius's $175 million convertible debt. Echostar is also buying up some of Sirius's bank debts. Research firm CreditSights speculates that Echostar needs to only spend another $100 million to take control of Sirius. This forces Sirius into one of two options: file for bankruptcy or get acquired.
Prediction: Sirius XM announces the company will be acquired by March 31, 2009.
Image: DJ Lein/Flickr
Price History
Prediction Statistics
| Betting Closes: | Mar 29 2009 | Current Consensus: | 1.98% | Total Bets: | 30 |
| Today's Change: | 0% | ||||
| Life Time High: | 58.66% | ||||
| Life Time Low: | 0.29% |
Comments
NYT reporting that Sirius is filing for bankruptcy.
Mel Karmazi - the name is Karmazin.
@Richard, Oops, thanks for the catch. Fixed.
DirecTV acquires Sirius XM?
WSJ reports talks betw. Sirius and satellite mogul Charles Egen are getting cozy again.
Sirius is near deal with Liberty Media without losing control of company
Deal with Libery Media done in exchange for 40 stake. Enough money to deal with debt requirements through the end of year.
Here is the official press release from Sirius
The agreements, and the transactions contemplated by the agreements, do not constitute a change in control for SIRIUS XM under its outstanding debt instruments and are not subject to the approval of the Federal Communications Commission.
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