Sirius XM

For the last year i have enjoyed satellite radio.  The explicit lyrics, new music not found on terrestrial radio, Howard Stern and no commercials (most of the time) all made driving much more enjoyable.  It became even more important when i moved to Denver and had a 35 - 45 minute drive to work.  My service expires in 2 weeks.  I am not exaggerating when i say i receive at least 2 calls a day from a Serius XM sales representative.  They call so often that i have the number memorized!  It's 866-297-6863 if anyone wants to call THEM back and harass them a little.  

In case you haven't heard Serius and XM radio recently merged.  It's the only way either had a chance of competing against free radio.  Their goal is to consolidate costs but this takes time.  Unfortunately in this economy time isn't your friend.  Both companies incurred huge amounts of debt sending satellites into orbit and inking deals with the NFL, MLB and Nascar.  It's estimated that Serius XM has close to 1 billion in debt.  If we weren't in the midst of a financial apocalypse there would be banks lining up to refinance their debt or extend the terms to help them survive.  The company is finally cash positive with approximately 2 billion in annual revenue and year over year increasing annual subscriptions.  

The future of Serius XM will become clearer February 17 when they are forced to pay the NFL close to 50 million.  Unless something changed today they don't have the cash.  Will a bank or private investors save them?  

I personally believe they will avoid bankruptcy.  But that's just an opinion.  Only time will tell.  

So what happens to my subscription if they file for bankruptcy or are purchased by another company?  Unfortunately, when i asked the sales representative he had no clue.  He touted the company line and said service would not be interrupted.  I started to question that assumption and he had no answers.  In fact, he reread the original statement!