Liberty Media saves the day, dumps over half a billion into Sirius XM

General

D-Day has arrived for the struggling satellite radio provider and for the time being, all is not lost. Liberty Media has indeed swooped in and pumped $530 million into Sirius XM in order to prevent the company from defaulting on $175 million in debt owed to Echostar today. Echostar’s Charlie Ergen had offered to take control of the company in an effort to “help” it avoid bankruptcy but the Sirius XM board seemingly wouldn’t even consider Ergen’s offer as a possibility. Instead, Sirius opted to work with Echostar’s biggest competitor – Liberty Media is the majority owner of DIRECTV while Echostar owns and operates the DISH Network fleet of satellites – giving Liberty 40 percent of the company and two seats on its board in exchange for the loan, $250 million of which will be funded today. Zing! Despite the fact that Ergen will get his $175 million in full today, something tells us he won’t be doing the happy dance.

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16 Comments
  • MadMike

    Along as I get my commercial free music and prices don’t jump too high.

  • C-Dog

    Mel is a sharp business man. You’ve got to admit that.
    Still, I don’t find the content on Siri/XM to be worth paying for. I never listen, and the receiver sits on my desk.

  • MadMike

    It’s essentially the same content as regular radio. They have rock stations, rap stations, techno stations, country stations, etc… Except, most of the stations are commercial free.

    That and you get the same channels whether you are in East Bumblefuck, PA or Miami, FL. I’ve gone on training trips to some remote areas of PA where the ONLY radio station is Incestuous Sisterfucking Country music.

    True, an iPod does the same thing – but I don’t keep up on the latest music and bands. The only way I find out about new music is from the radio. I could hook up my iPhone to my car stereo and run Pandora – but I can’t trust AT&T to have service.

    Siruis XM is just plain convenient.

  • Kevin®

    If youre a NFL fan then Sirius is a MUST have for the NFL Channel. The music selection that they choose to play I find annoying. They could be better but it is commercial free and then theres always Howard, who is as good as ever and does NOT phone it in as was previously stated here on BGR. Why somoene would have this at home or anywhere besides in the car is beside me. Its great for the car. Ive had for almost 5 years now and I cant remember the last time I turned on terrestrial radio. And when I have to listen to it in someone elses car I hate it. Need my Sirius!

  • Dee

    Sirius XM sucks. If it weren’t free for me, I wouldn’t bother with it. All the stations I listen too are edited and have commercials. *shrugs*…

  • p51d007

    Not to worry…when the idiots in DC put the fairness doctrine back into effect, the talk radio masses will move to satellite radio, boosting subscribers.

  • Dtest54

    music doesn’t have commercials, the talk and other stuff does.

    I’m a daily listener but the padora / last.fm’s are making it a tougher sell to keep the service. I do like the talk stuff though.

  • RAR

    Where are the snarky comments now, Zach?

  • Aaron

    I dumped Sirius/xm for Slacker.com.. Best part it’s free and has a bigger selection.

  • Greg

    After receiving erroneous charges and being hung up on by customer service, I dropped XM last week. I only listened to 1 channel anyway.

  • zac

    My wife got a letter a few months ago from sirius saying she owed 800$…she hasn’t been a subscriber for 4 years…we called them up thinking it was a scam but they were legit so too bad sirius that’s 800$ you can eat!

  • Schwack

    I love the guys who post “too many commercials so I dumped it”. Great. It’s free will. Dump it if you don’t like. I have been a member for the past 3 years and have 2 of my brothers that are subscribers. I think it’s a good deal….variety of talk, sports and music. When I’m on the road, I’m not limited to lame-o FM and AM stations. No dead zones. Plus, when I’m working from home…I can log on and listen to it.

  • MadMike

    @Zac: How do you even get a bill as high as $800? Sirius is pre-pay only. If you don’t pay, they just don’t give you service. There are no overages. Unless she owned a business. I just don’t see it. You purchase the hardware, so its not rented. It can’t be a charge from not returning hardware, like a cable box when you cancel your cable. Call the office of the president, you can probably find e-mail addresses and phone numbers to high level execs on the Consumerist.

  • Schwack

    I think Zac is exaggerating for the benefit of bashing Sirius. I doubt if he’s even a customer….

  • Evilhomer

    Yep. I call bullshit on Zac too. I’ve always paid for my subscription in advance. A year at a time. There is no way Sirius is going to let him skate for 4 years without payment.

    Don’t make up shit to try and make a point. If you don’t like Sirius, don’t get it. No one really cares.

    As for the commercials, most of the music stations don’t have them. You do get them on the talk and news channels because those are usually simulcasts of TV and regular radio broadcasts those do contain commercials. Therefore, with that type of programming, it would make sense to use that time for ads rather and just dead space. The only one I hear commercials on besides that are the stand up comedy channels. And I wish they would get rid of them on there. Plus the damned “talk shows” on comedy radio too. Who give a shit listening to Jim Brewer talk about whatever pops into his tiny brain. I want to hear stand up. Period.

    Besides that complaint, SiriusXM is still the best. Saying it’s stupid to pay for satellite radio is like saying it’s stupid to pay for satellite TV. If you are content with commercial broadcasting , more power to you.

  • Schwack

    A-friggin-men.

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