Sirius Feeling The Pain

SIRI's wait to close the deal hurt; Cost cuts were delayed, advisory fees racked up, and customers got confused. Moreover, credit got harder to come by, forcing the company to raise cash on onerous terms to complete the deal last month. While the potential synergies justify the combination, Sirius XM's debt load gives it limited time to deliver the goods. Big hurdles remain…Car sales -- one of the main ways satellite radio gets new subscribers -- are plummeting. The number of net subscriptions added in the second quarter dropped by a third compared with last year. And credit markets could seize up further. Sirius XM needs to start delivering quickly, or the delay in securing regulators' approval for the merger may cost it dearly. [WSJ BreakingViews]