MW's Friedman on Sirius Trouble, Stern

" And breaking news we are hearing right now that Liberty Media is near a deal to take a major stake. In serious except this is getting more and more interest in Liberty Media of course. That type of investment would -- serious for bankruptcy but they have to elbow past echostar Charlie -- you know."

" And the thing about liberty is that liberty focuses on hard stuff not so much the content itself people like us that that talent. Which which has of course -- series has a history of focusing on -- affect some people say all the expense of people like Howard Stern is exactly. Why they got into trouble their -- right now but again this would be very achieve Liberty Media. Does take a major stake in ex im curious one it could save them from bankruptcy into it might expand the reach that liberty media's had so far."

" It's all coming about because of massive amount of debt is due right away from serious serious test to pay it back they don't have the money and Mel Karmazin who runs the company. Is trying to tap dance and figure out what to do to save the company let's bring in Sandra Smith she's got the latest on all of this including the how the big stars will survive all of this if at all like Howard Stern exactly in this in this confuses a lot of people -- they'd they'd read about how serious merged with -- twenty million subscribers on average paying ten dollars a month. How could they not be doing -- look that. Past twelve doesn't really matter when they're sitting on a mountain of debt a 175. Million dollars of that debt is due tomorrow. One billion dollars have to be taken care of this year and three point two billion dollars total. That this company is sitting on the right now for the creditors and there's a lot of blame on the CEO of the company for not taking -- that after the merger took place so the creditors are now saying now Karmazin. The CEO of the firm. Settle for bankruptcy you any other executive left Burma are out they want some sort of investor the step in to make this company solvent going forward the company has been seeking salvation with a couple of different guys couple different companies here. Charles Ergen is the satellite billionaire had echostar this is the more likely scenario I'm hearing from analysts and also John Maloney that I cable television pioneer he's the head of Liberty Media which controls DirecTV. Both of these parties have made offers that would allow serious to meet their immediate debt obligation."

" But again you know you get John Malone and you think of his background TT CI which was later sold a big TNT. -- the guy has this this hard news back her dog he's involved with the infrastructure of communication rather than the talent that goes into communications so. It's kind of uninteresting fit if it works but when you."

" When you look at the investors and you look at the creditors what are they concerned most with is the debt that this company sitting on right now -- you got a lot of people have a problem with that. But the head of serious congressman who's going to have a little bit of an ego conflicts. With the fact that these are other big media moguls out there what would happen to his job it said that if -- is a steps then obviously you get a huge control this company. The Karmazin would then likely keep his position if the turmoil -- series sex and gets worse what will really be the consequence for example of the big stars like Howard Stern we bring in Jon Friedman media columnist for marketwatch.com. The best site in business we love MarketWatch. What happens to Howard Stern. "

" With a fortune. Big fortune already under salary now say are not going to renegotiate that -- owners could out of business is -- bankruptcy it was a way how would stood the free -- inside anywhere he wants and it's what's -- and in this in the NFL or baseball when MBA. He'll measure would command in the market today Howard -- biggest name of this kind of medium high grade but now you have the -- in the corporate level you have -- you have Karmazin you have John Malone I -- one of the consummate deal makers of all time. How does that play -- It depends going to make this thing work coming Karmazin was the smartest guy in video around until serious fell apart. What about Malone is no radio he knows cable TV the -- a quick study by Republicans that voted brilliant when the great -- of -- the media but can make this work this this Dennis -- this enormous."

" But he'll have to elbow out Charles Ergen who of course is no dummy in the -- the son of nuclear physicists and he's obviously a tough player he took over sling media he knows what he's doing and he fights a lot of battles here to win."

" I still safe Howard Stern can survive all this and the free agent. Hope they had zeros ten zeros 20200 -- the guys who meet the very very -- solo you know -- and Sander was talking it seems like such a terrific business model you have so many subscribers who. Who love this product and yet. It has this terrible debt problem how will if they don't make it how will some other company who who sees the potential here. Hone in and and make their own company. It won't. Why should it zero laws is that it excite radio and in the world that our loved it and loved one million subscribers there's got to be a product that fits that many consumers you think so but why can't why can't Mel Karmazin again when the smartest guys in radio around make it work -- business -- to stinks I don't care what can -- save us from."

" How it's not the only one they've got Oprah they've gotten -- Martha -- they're a lot of big stars the NFL the NHL. My personal favorite channel 172 run he'll pick up French commitment and the French Canadian sports talk radio that you don't have Fox News in large business that we're -- have gotten that -- When they begin to get in trouble numerous that's really begin again in trouble on the F -- is that they need to get fox business got an agreement thank you very much standard thing and we should mention market watchers division of Dow Jones of course and of course we're all in that they."