Sirius eyes bankruptcy

Great Googly Moogly!

With CEO MEL KARMAZIN trying to raise or refinance $175 million in debt by FEBRUARY 17th, the company's choices could include Chapter 11 bankruptcy, which would allow it to drop some of its more expensive contracts, and the WALL STREET JOURNAL speculates that one of those contracts could be HOWARD STERN's $500 million, five year deal. STERN said THURSDAY that "I just need to know who I'm working for on any given day."

Perhaps Opie and Anthony as well. I am not one of those radio people who are excited about the impending death of Satrad. I don't think its a business that can survive without big personalities, tho. Satellite radio is going to have to evolve, just like the rest of the business, or die. But if you just stream music, they don't have a prayer.

Radio companies need to understand that you will be insolvent unless you have personalities that can deliver your message. Seeing as how most GMs are sales managers anyway, look at it like this: You must have the best possible person getting your message out there, or its not going to work. Just having someone on the air is not enough to get people's attention. Radio is not like bilboards. It must be sought out before people can listen to the advertising.