Yes, this is jumping the gun a little bit but it’s on its way according to the New York Times. Sirius & XM radio, who merged late last year after a year and a half debate with the FCC, appears to be in as bad a shape as they claimed they were before the merger. This was one of the reasons that Sirius & XM gave for the FCC to approve the merger, that one of them was going to go bankrupt anyway and then the public would only have one choice for satellite radio regardless of the approved merger. Now it seems that the merger was not a save all for one entity but a hail Mary pass to save both that failed.

Sirius & XM are not solely to blame for the demise of the two companies, the FCC dealt the final blow by setting up unrealistic restrictions that Sirius XM had to agree to in order for the FCC to approve the merger. These terms, spelled out well on the now defunct August Filet, set the companies up for delayed failure.

Neither company has ever turned a profit independently and is dragging a $3.25 billion debt with them, $575 million of which is owned by Echo Star, the TV satellite company that appears to be laying in wait to buy up Sirius XM when they do file chapter 11, which is expected later this week.

Fortunately there appears to be no plans to interrupt broadcasting at this time but who knows what will happen down the road.