EchoStar seen acquiring Sirius debt
By Jeffry Bartash, MarketWatch Last update: 8:28 a.m. EST Feb. 5, 2009WASHINGTON (MarketWatch) - EchoStar Corp. reportedly has been buying up a sizable stake in the debt of Sirius XM Satellite Radio Inc., prompting speculation of a potential takeover. Charlie Ergen, founder of EchoStar and its affiliate Dish Network Corp. (DISH:dish network corp cl a News , chart , profile , more Last: 12.84+0.17+1.34%
4:00pm 02/04/2009
Delayed quote dataAdd to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: DISH 12.84, +0.17, +1.3%) , could be seeking to use the debt as a means to take control of Sirius, The Wall Street Journal reported. Sirius and XM Satellite Radio combined last year in an effort to create one strong satellite radio provider in the U.S., but the merger has faced an array of difficulties after a lengthy antitrust review process. Sirius (SIRI:sirius xm radio inc com News , chart , profile , more Last: 0.14+0.00+1.79%
4:00pm 02/04/2009
Delayed quote dataAdd to portfolio Analyst Create alert Insider Discuss Financials Sponsored by: SIRI 0.14, +0.00, +1.8%) has about $3.4 billion in debt and faces some big payments in the near future, the Journal reported. Yet the U.S. recession and slumping auto industry have taken a toll on sales. Many new satellite subscribers acquire their service with the purchase of new cars. Competition from devices such as the iPod as well as Internet radio has also hurt. EchoStar, for its part, faces stagnant growth in Dish Network, the No. 2 U.S. satellite-TV provider. The addition of Sirius might provide EchoStar a new source of revenue growth or a means to generate economies of scale by combining satellite assets. Jeffry Bartash is a reporter for MarketWatch in Washington
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