Under Pressure, Sirius XM Tries to Look Ahead

Merged company works to develop subscribers, refinance debt

By Jim O'Neill

Posted Sep 15, 2008 11:45 AM CDT

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Under Pressure, Sirius XM Tries to Look Ahead — In this Feb. 7, 2007 file photo, Sirius Satellite Radio Chief Executive Officer Mel Karmazin, center, talks with company president Scott Greenstein, right, in New York. (AP Photo/Mark Lennihan, File)

Satellite radio’s fortunes—thought to be peaking after Sirius and XM merged in July—are falling as the united company’s stock continues to tumble and management scrambles to refinance debt, reports the Wall Street Journal. Still, CEO Mel Karmazin says, the company is “heading toward making a bunch of money in the future.”

The new Sirius XM hopes to cash in during the holiday season, regaining its footing after a year of merger confusion that essentially stopped retail sales. The company is wooing retailers like Best Buy and Circuit City and may offer ex-subscribers a free taste of the new, combined service. And after he has Sirius XM's cash flow problems resolved, Karmazin says, he'd like to explore going private.

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