By Brandon ZimermanSirius XM has filed for bankruptcy today, February 11. Shares of Sirius dropped 31% today admist the reports of the bankruptcy. Shares were down 3 cents to 8 cents, it traded at $4 just two years ago. Charlie Ergen, head of satellite provider Dish Network (DISH), had acquired most of a tranche of $300 million in Sirius XM debt that matures Tuesday, and that Sirius turned down Ergen's unsolicited bid to buy the company.
XM Satellite Radio and Sirius Satellite Radio were formed in the late 1990s. Though there was skepticism in some circles that people would pay for radio when it was available for free, as it had been for decades, the satellite services gained traction by convincing automobile manufacturers to make them optionally available in cars and trucks. Sirius and XM radio units were also available in retail stores.
The Chapter 11 filing is expected to be complete in a few days.
Sources:
http://money.cnn.com/news/newsfeeds/articles/djf500/200902111043DOWJONESDJONLINE000678_FORTUNE5.htm
http://www.prefixmag.com/news/sirius-xm-preparing-for-possible-bankruptcy-filing/25992/
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