Struggling satellite broadcaster Sirius XM may be on the verge of bankruptcy. The New York Timesreports the company is meeting with restructuring advisers in advance of a bankruptcy filing.
The bankruptcy would come just months after the two satellite radio broadcasters, Sirius and XM Radio, merged. At the time, both companies were in shaky financial condition a problem made worse by the recession.
Besides the general economic downturn, Sirius XM has been hurt by the disastrous slump in new car sales. The company gets most of its new customers from the sale of new cars equipped with stereo receivers.
The U.S. Justice Department approved the merger last year, despite strong opposition from some consumer groups. The Consumer Federation of America, Consumers Union and Free Press urged the Federal Communications Commission to reject the proposed XM-Sirius merger on the grounds that it would lead to higher prices.
This week Sirius XM notified subscribers that free online access would soon end, but offered to provide continued online access at no charge if customers would extend their contracts.
The combined company offers dozens of non-commercial music channels, as well as a number of commercially-supported news and talk channels.