The end could be near for bankrupt satellite radio firm WorldSpace. The company put out a terse statement this afternoon saying that its “strategic transaction negotiations” with creditor Liberty Media (NSDQ: LINTA) had been terminated by that company.
Ominously, WorldSpace — which had raised $150 million in an IPO in July 2005 but filed for bankruptcy protection a year ago, warns that while it awaits word from Liberty about “the handling of Liberty’s collateral” it is planning not only to review its strategic alternatives but also to potentially decommission its satellites.
As Reuters (NYSE: TRI) points out, WorldSpace doesn’t explicitly say what the strategic transaction negotiations with Liberty involved. (We’ve asked and will update when we hear back).
But the news may put into question an expected tie-up between Sirius XM (NSDQ: SIRI) and WorldSpace. Liberty owns all of WorldSpace’s debt and also controls 40 percent of Sirius XM, and the consensus has been that it would try to bring the two companies together in some way. Indeed, in late November, Sirius XM CEO Mel Karmazin said that it would make sense for WorldSpace — which has its biggest presence in Asia and Africa — and Siriux XM — which only has operations in North America — to team up.