Rich Fiscus
12 Feb 2009 11:59
As debt-ridden Sirius XM Satellite Radio gets closer to declaring bankruptcy they appear to be fighting back against a takeover attempt by Echostar. Echostar, who owns much of Sirius XM's $3.25 billion in debt, seems positioned for a buyout (or more accurately exchange of debt for stock. But Reuters is reporting that Sirius XM executives are in talks with Liberty Media looking for a better deal.
The primary point of disagreement with Echostar's Charlie Ergen, according to Reuters, is whether current Sirius XM CEO Mel Karmazin would keep his job. Liberty Media controls DirecTV and owns 50% of that company. Echostar manufactures satellite TV receivers and DVRs for DirecTV's major competitor, Dish Network, and until last year was part of that company.
It's unclear at this time whether this is a serious possibility or just a last ditch effort by Sirius XM executives to keep their jobs. It may help that one member of their board of directors, Eddy Hartenstein, is also the former CEO and Chairman of DirecTV's board, and served as their President for over a decade prior to that.