Howard Stern Still Believes In Sirius
February 12, 2009 at 5:04 AM (PT)
HOWARD STERN dismissed the financial troubles plaguing SIRIUS XM RADIO INC as "growing pains" and said he believes satellite radio will be a successful business, reports REUTERS. Even as SIRIUS shares plunged to a historical low of 5.2 cents on WEDNESDAY following reports that the company is preparing for a possible bankruptcy filing (NET NEWS 2/10) and last night's reports of a possible deal with LIBERTY MEDIA (NET NEWS 2/11), STERN -- whose team is paid $100 million a year by SIRIUS -- was unfazed.
"Everybody's wondering about this whole bankruptcy thing with SIRIUS," the self-proclaimed King of All Media said on his satellite radio program. "I'm not concerned. I think satellite radio is great and will be a successful business and it will survive," he said.
THE NEW YORK TIMES reported that SIRIUS has been working with advisers on a possible Chapter 11 filing, putting pressure on CHARLES ERGEN's ECHOSTAR CORP, which reportedly owns a substantial amount of SIRIUS debt and is seeking to take control of the company.
SIRIUS has $175 million of convertible notes maturing on FEBRUARY 17th, $350 million of secured bank debt due in MAY 2009, and $433 million in convertible notes due DECEMBER. The credit squeeze is making it hard for SIRIUS to meet the obligations.
STERN said he tried to call ERGEN himself, but never succeeded in talking with him. While noting that his knowledge was limited only to what he had read, STERN said he would not rule out a hostile takeover offer. "There's a game going on and it's for billions of dollars," he said. "As long as someone is paying our salary, we're here and I believe we'll get paid and that satellite radio will be here," STERN said.