News: Sirius XM Prepares for Bankruptcy, Eminem's Shade 45 Radio Future Unknown
Wednesday, Feb 11, 2009 5:00PM
With a potential bankruptcy looming, Sirius XM, home of Eminem's Shade 45, may become one of the largest entertainment casualties of the current credit squeeze.
According to reports Sirius XM, the satellite radio company, is preparing for a possible bankruptcy.
Sirius XM has hired advisers to prepare for a possible bankruptcy filing, people involved in the process said. It is unclear how a bankruptcy would affect customers. Service is unlikely to be interrupted, but the company might have to terminate contracts with high-priced talent like [Howard] Stern or Martha Stewart. (NY Times)
As a result of the news, Sirius stock dropped drastically.
Shares of Sirius XM Satellite Radio Inc. (SIRI) dropped 31% in morning trading Wednesday on reports that the company could be close to filing for bankruptcy protection. The shares were down 3 cents at 8 cents. The stock traded in the $4 range two years ago. (CNN)
The US radio giant was formed in July of 2008 when former competitors, XM and Sirius, merged.
Sirius and XM completed their merger after winning a lengthy battle with regulators over concerns about market competition. The new company formed by Sirius Satellite Radio's buyout of XM Satellite Radio, will be called Sirius XM Radio Inc. The combined company has more than 18.5 million subscribers, making it the second-largest radio company, based upon revenue, in the country. (AFP)
The station's hip-hop uncensored channel, Shade 45, was created by rapper Eminem.
SIRIUS launched Shade 45, the uncensored, commercial-free hip-hop music channel created by Eminem, Shady Records, Interscope Records and SIRIUS in October 2004. The channel also features other high profile figures in the world of hip-hop. 50 Cent oversees G Unit Radio. (TopSatelliteRadio.com)