Gearfuse

The AP is reporting that Liberty Media, who had previously expressed interest in Sirius-XM, has signed a deal where it’ll invest $350 million in the failing satellite radio company. This comes right in the nick of time; Sirius had $175 million in bond payments due today, which would have no doubt sent the company into Chapter 11 bankruptcy. Instead, Liberty Media is going to get 12.5 million shares of convertible preferred stock, worth about 40 percent of the company’s common stock. Additionally, two seats on the board will go to Liberty Media, giving it quite a bit of control over the company.

As for current CEO Mel Karmazin, it’s only a matter of time before he’s outta there. Since the merger between Sirius and XM, Karmazin has failed to have the company turn a profit, leading to a lack of investor confidence and a couple close scares. Let’s hope that Liberty Media can stop Sirius-XM from bleeding cash; especially from that $500 million Howard Stern deal. Shareholders, you can breathe a little easier today.

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The New York Times tends to be a pretty reputable news source. So when I read last night that XM-Sirius Satellite Radio is probably going to file for bankruptcy, I felt like absolute shit. Why? Because I recently bought some shares of the company hoping it’d recover by 2011. Apparently CEO Mel Karmazin just can’t get the company to turn a profit and the debt is piling up. Combined with pissed off shareholders like myself who are fuming over a botched EchoStar sale, XM-Sirius is probably going to go under in the next two years.

The company is preparing to file for Chapter 11 bankruptcy soon. R.I.P. XM-Sirius.

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We’ve been following the Circuit City bankruptcy very closely. Yesterday, we showed you some of the liquidation “deals” that readers posted around the Internet. Nothing spectacular there, but even less spectacular is Circuit City’s official website. It has no online store now and just announces the closing of all its stores, bankruptcy proceedings and other legal jib-jab. After 60 years, Circuit City is done and all that’s left is for Best Buy to continue raking in the profits.

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Technologizer’s Harry McCracken was brave enough to stop by his local Circuit City in California to see what all the fuss was about regarding the company’s liquidation process. Inside, he found mediocre deals on mediocre equipment. No surprise there. Harry speculated that as the shelves become more bare, the discounts will increase. We agree.

Still, I think it’s worth checking out a Circuit City if you live near one. Chances are the manager will be more than happy to bargain with you if you’re picking up enough goodies. After the jump, photos showcasing the death of an electronics retailer.

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I really don’t see much of a future for Circuit City. If it’s filing for Chapter 11 bankruptcy, replacing CEOs, closing stores and losing cash, explain to me how the company is supposed to survive. Says Bloomberg:

On Sept. 29, Circuit City reported a loss of $239.2 million that was more than triple from a year earlier after sales fell for the sixth straight quarter.

The end is near for Circuit City. I’m guessing that by 2010, the company will fold completely and this part of our lives will be over and several thousand people will be out of jobs. Blame the economy and shitty customer service is what I thinks.

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