Sirius: Rumors of our near death? It was the media’s fault
It’s the media! That’s what Sirius would have us believe.
On a post-earnings call on Thursday executives said the company’s precarious financial position during the last few months as it sought to resolve a looming debt debacle was exacerbated by the media’s interest in Sirius. Apparently, stories about companies going bust not only upset investors and creditors, but customers too.
Sirius XM President of Operations Jim Meyer told Wall Street analysts he’s excited to have completed the debt refinancing and merger between Sirius and XM so the company can assure customers it will be around for a while.
There certainly was headwind associated with both the confusion of putting the two companies together and the overall just unbelievable amount of news and press that we have seen really in the fourth quarter and continuing in January and February on the financial condition and refinancing of our balance sheet.
CEO Mel Karmazin agreed:
It’s particularly sensitive for us because people prepay their subscriptions in large part. So the idea of all of the noise in the market certainly when you are asking somebody to prepay and buy a year in advance or something like that, obviously has an impact.
That pesky media!
(Photo of Mel Karmazin/Reuters)