Sirius (NASDAQ: SIRI) hit a new 52-week low today at $2.45. While The Justice Department gave its plan to merge with XM Satellite (NASDAQ: XMSR) an OK, there has been no news from the FCC. Some powerful members of Congress are still concerned the combination will create a monopoly.
Sirius has even deeper problems. The company has over $1 billion in debt on its balance sheet. In an environment were risky debt is poison, investors are clearly concerned about whether Sirius can survive in its present form, especially if a shrinking economy cuts into subscriber growth and widens the firm’s operating losses.
The FCC has, in essence, take Sirius from a company which had fairly good prospects to one which is on life support. In a sharp downturn, life support may not cut it.
Douglas A. McIntyre
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
