Sirius-XM merger approved

7,000,000,000 x 15 = barely covers his salary. I think they overpaid for Stern. He should have been paid on how many customers actually listen to his channel.

I really hate sirius is trying jack everyone for $3 a month to listen to the internet feed. They are also raising the 2nd radio fee. I was about to pay the $399 lifetime fee but I think I'll wait and see what happens.

 

If they have positive cash flow, why are they filing bankruptcy?

 

Sirius hasn't filed yet but I may not be long before it does.

Here's some stuff I was able to find on the web as to why Sirius is considering filing.

It's because of the debt load.

 

Well, it ain't positive cash flow if they can't pay the debt payments.

 

True. There are three types of cash flow: operating, investing, and financing. I took a look at the cash flow statement (you can find it on YahooFinance and GoogleFinance) but it's hard to follow probably because of the merger. No matter though if Sirius can't make it's debt payments. The company lost a shit load of money last year.

 

I let my subscription run out after the channels started to merge. I still had it for a month or so and never renewed. they billed me for a little over 20 bucks which I never paid. called and called. finally they sent it to a debt collection agency to get it. they are broke

 

It's not quite that simple. Mismanagement early on, startup costs and recently the government dragging out the merger on purpose has put them way behind their debt schedule.

They can easily become solvent through simple restructuring. They have over 2 billion in annual subscription revenue alone, not to mention ad revenue. There is a reason someone is trying to purchase their debt.

 

What? 7,000,000 subscribers generate 3/4 of a billion dollars/year in revenue. I think that covers his salary even if the reported 100 mil/year number is accurate, which many say it isn't.

Not to mention the advetising revenue his show creates. He was worth every penny spent. They were being burried by XM and 3 years later have taken them over.

If they do file bankruptcy to restructure I bet his is the only contract they don't mess with. Paying Oprah 55 mill do generate nothing was the biggest mistake.

 

Why would you damage your credit over $20?

 

Oh I paid it. It went from original bill, to collections in about 5 weeks. thats pretty fast. I was let go of my job and xm wasnt a priority, plus I told them I never renewed. They said it was in the contract they call bill that extra month if you don't renew. I didnt know that or remember so fair enough. I paid that day.

edit: all of the calls were automated about renewing, never about the debt.