NEW YORK - Sirius XM Radio Inc warned that the dramatic slowdown in car sales would hurt subscriber growth next year, as it issued an updated financial outlook in light of its negotiations with banks to cover debt coming due in 2009.
Sirius XM Radio, which is talking to financial institutions about ways to replace 2.5 percent convertible notes, has struggled since the company was formed last summer in the $3.3 billion merger of Sirius Satellite Radio and XM Satellite Radio.
The ailing auto industry is one of the major problems for Sirius XM, since new vehicle sales are a key avenue for subscriber growth. The company also has been hard hit by competition from other media, like iPods, and an economic slowdown that has consumers watching their spending. Shares of the company are stubbornly stuck below $1.
Sirius XM Radio, which is talking to financial institutions about ways to replace 2.5 percent convertible notes, has struggled since the company was formed last summer in the $3.3 billion merger of Sirius Satellite Radio and XM Satellite Radio.
The ailing auto industry is one of the major problems for Sirius XM, since new vehicle sales are a key avenue for subscriber growth. The company also has been hard hit by competition from other media, like iPods, and an economic slowdown that has consumers watching their spending. Shares of the company are stubbornly stuck below $1.
