908937--2/29/2008--SIRIUS_SATELLITE_RADIO

related topics

{cost, operation, labor}

{debt, indebtedness, cash}

{capital, credit, financial}

{product, market, service}

{stock, price, share}

{control, financial, internal}

{product, liability, claim}

{investment, property, distribution}

{system, service, information}

{regulation, change, law}

We may need to refinance a portion of our debt, which refinancing may not be available. Our substantial indebtedness could adversely affect our financial health. We may from time to time modify our business plan, and these changes could adversely affect us and our financial condition. Our business might never become profitable. Programming is an important part of our service, and the costs to renew our programming arrangements may be more than anticipated. Higher than expected costs of attracting new subscribers could adversely affect our financial performance and operating results. Higher subscriber turnover could adversely affect our financial performance and operating results. Weaker than expected market acceptance of our service could adversely affect our advertising revenue and operating results. Failure of third parties to perform could adversely affect our business. We may be exposed to liabilities associated with the design, manufacture and distribution of SIRIUS radios. Rapid technological and industry changes could make our service obsolete. Our national broadcast studio, terrestrial repeater network, satellite uplink facility or other ground facilities could be damaged by natural catastrophes or terrorist activities. Consumers could pirate our service. Risks Relating to the Pending Merger with XM Radio In connection with closing the merger, a substantial amount of XM Radio s indebtedness will need to be refinanced or amended. The combined company s indebtedness following the completion of the merger will be substantial. This indebtedness could adversely affect the combined company in many ways, including by reducing funds available for other business purposes. The ability to complete the merger is subject to the receipt of consents and approvals from government entities, which may impose conditions that could have an adverse effect on us or could cause either party to abandon the merger. Any delay in completion of the merger may significantly reduce the benefits expected to be obtained from the merger. The anticipated benefits of the merger may not be realized fully or at all or may take longer to realize than expected. The issuance of shares of our common stock to XM Radio stockholders in the merger will substantially reduce the percentage interests of our stockholders. Failure to complete the merger for regulatory or other reasons could adversely affect our stock price and our future business and financial results. Resales of shares of our common stock following the merger and additional obligations to issue shares of our common stock may cause the market price of our common stock to fall.

Full 10-K form ▸

908937--2/29/2008--SIRIUS_SATELLITE_RADIO_INC