XM Radio Announcement Fuels Anxiety on Wall Street

摘要

Shares in XM Satellite Radio tumbled May 24 after it announced it would not meet subscriber acquisition projections for the year, and while the stock recovered somewhat later in the week, some analysts suggested the company has a credibility problem. The announcement was the latest in a string of bad news for the Washington-based satellite radio services provider. XM, already facing legal challenges to its latest handheld listening and recording devices, said May 22 that it was abandoning its planned $196 million acquisition of WCS Wireless due to regulatory hurdles. Two days later, XM Chief Executive Hugh Panero said the company now expects to have 8.5 million subscribers by the end of the year, rather than 9 million as previously predicted.