DirecTV Group Inc., the largest U.S. satellite-television provider, is in talks with Sirius XM Radio Inc. about a possible deal, according to people close to the situation.
An accord may help prevent Sirius XM from seeking bankruptcy protection or agreeing to a deal with satellite company EchoStar Corp. less than a year after Sirius Chief Executive Mel Karmazin completed the merger of the only two U.S. pay-radio providers.
Sirius XM has $3.25 billion in total debt and has until Tuesday to repay $175 million in bonds held by EchoStar.
Both EchoStar and DirecTV, the El Segundo pay television company controlled by John Malone's Liberty Media Corp., could use Sirius XM's satellite capacity to integrate radio and television services, said Fred Moran, an analyst at Stanford Group. EchoStar has been buying Sirius XM's debt since making an unsuccessful takeover bid in December, said one person with knowledge of the matter.
“All of these companies are satellite-delivered media," Moran said. “If you can cross-market, cross-promote and intertwine services between satellite video and satellite audio, you could strengthen your competitive position."
