Struggle for Life Continues at Sirius XM

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Speculation continued Wednesday on the fate of Sirius XM Radio, a company battling massive debt and growing competitive pressures.

Shares of SIRI edged upward to 38-cents on Wednesday, though downward pressure is building.  Goldman Sachs analyst Mark Wienkes jumped back into the picture with a 25-cent forecast and a reinforced sell rating, enough to deflate a near-term bounce.

Sirius faces more than $1 billion in debt obligations next year, though Wienkes outlined deeper structural problems.  That includes expectations of softening subscriber demand, ongoing negative cash flow, and a continued reliance on outside funding to keep the lights on.  Wienkes warned that Sirius shareholders face serious dilution as the company issues new shares or uses existing shares to pay down debt.

Elsewhere, satellite radio underachiever WorldSpace is now mired in bankruptcy.  The company was delisted by Nasdaq this week.

Story by news analyst Alexandra Osorio.