Citizens of Boston, you heard some awful news this week. According to reports, rock institution WBCN 104.1 FM will no longer be filling the airwaves with its iconic brand of irreverent broadcasting. Instead, it will live on as a web domain. In its place will be WBMX, a station that was formerly at 98.5 in the FM universe. An all-sports format will take up WBMX's old home. Who can you thank for this? Send all complaints to CBS (NYSE: CBS), the station's owner.

Actually, before you compose a bunch of angry missives, please consider the state of terrestrial radio. Quite frankly, CBS doesn't have a choice. Between the lousy growth prospects for the medium, and the challenged status quo of the advertising market given the terrible global recession that continues to rip through the markets like a hideous beast, changes have to be made. Changes that you thought would never come.

Stern fans, breathe easy! In breaking news this morning, SIRIUS XM Radio (NASDAQ: SIRI) and Liberty Media Corp. (NASDAQ: LMDIA) have reached a deal that will save the satellite radio company (for now) from the brink of bankruptcy.

Liberty will invest $530 million in SIRI, kicking off with a first phase: a senior secured loan worth $280 million, $250 million of which will be paid out today.

In response, Liberty will assume two spots on the SIRIUS XM board and receive 12.5 million shares of preferred stock, convertible into 40% of common SIRI shares.

SIRI CEO Mel Karmazin, told reporters, "Liberty's investment is an important validation of what SIRIUS XM has already achieved and a vote of confidence in what we will achieve..."

In pre-market trading, SIRI shares have jumped more than 80% to 19 cents per share.

Beth Gaston Moon works for WeSeed.com. The above comments are not intended as trading or investment advice.

Sirius XM (NASDAQ: SIRI) is up against debt payments that its management has been saying would not be a problem.

According to The Wall Street Journal, "Sirius XM Satellite Radio Inc. is facing an important test of its viability this month: how it handles $174.6 million in debt coming due Feb. 17." Since the company has not reported its fourth quarter, no one knows for certain how much cash Sirius has. More debt payments are due later in the year.

Could the debt problem this month push Sirius into Chapter 11? It is impossible to tell, but the obligation has not been renegotiated or replaced with new debt.

Okay, let me state clearly at the beginning here that Sirius XM (NASDAQ: SIRI) closed on Monday at $0.27 per share. Right from the start, you know we're talking about a risky stock -- a lottery ticket, as they say. And since our subject is the result of a recent merger, there's a lot of pro forma data located in the press release detailing the satellite-radio company's Q3 performance.

According to that pro forma data, revenues increased 16% to almost $613 million. The pro forma net loss was halved to $0.09 per share. It's funny, because when you look through the numbers, you almost feel compelled to come away with a good feeling about the story. Total subscribers increased 17% on a year-over-year basis, subscriber-acquisition costs decreased, cost synergies are manifesting themselves, and projections for free-cash-flow generation seem to be attractive.

However, one has to realize that an attractive cash-flow statement isn't around the corner. Positive free cash flow should begin on an annual basis in 2010. Plus, Sirius XM management must deal with refinancing its debt. And it did make a $4.8 billion write-down relating to goodwill impairment. Also, the economic problems of auto manufacturers such as Ford (NYSE: F) and General Motors (NYSE: GM) are not helping Sirius XM. If car sales are down, then adoption of the satellite-radio company's programming is challenged. It's a simple relationship.

This post is part of a feature on companies and products that our bloggers think are in need of a makeover. See all 26.

They had to twist my arm to write about Playboy Enterprises Inc. (NYSE: PLA). At least that's the story I am telling my wife and I am sticking to it.

The problem Playboy faces -- as do other purveyors of adult entertainment -- is a simple: why buy a cow when you can get the milk for free. That's a crude and probably sexist metaphor, but an accurate one. Not only is the amount of porn on the internet mind-blowing, but increasingly it's free and can be accessed anonymously. For Playboy and its competitors, the problem is only going to get worse because the popularity of these sites appears to be soaring.

Wall Street already has little faith that the Chicago-based company can redeem itself. Shares in the company built by Hugh Hefner have dropped more than 82% this year. The company has been a mess for years. Net income in the second quarter was a puny $2.1 million, or 6 cents per share. Revenue fell 14% to $73.4 million as higher licensing revenue did not offset the declines in its media business.

Particularly worrisome was the loss in the publishing unit of $1.9 million following declines in circulation and advertising at the domestic edition of Playboy magazine. Advertising pages dropped a whopping 10 percent in the third quarter.

Howard Stern, the reason why many people subscribe to Sirius Satellite Radio Inc. (NASDAQ: SIRI), has upset country legend Dolly Parton.

The singer is madder than a rattlesnake trying to bite a fencepost at the self-styled King of All Media for splicing together audio segments that made it appear that she was saying nasty things about celebrities including Kenny Rogers, Linda Rondstadt, Burt Reynolds and Johnny Carson, according to the Associated Press.

In a statement posted on her Web site, the singer/songwriter said she had never been so "shocked, hurt and humiliated in my life...Please accept my apology for them and certainly know I had nothing to do with this. If there was ever going to be a lawsuit, it's going to be over this."

I am sure that any lawyer Parton contacts -- or an law student for that matter -- will tell the writer of "I will always love you" that she doesn't have a snowball's chance of prevailing against Stern. The First Amendment gives performers the right to say vile things about celebrities in what is obviously a parody. Remember Jerry Falwell's fight against Hustler magazine which he lost in the Supreme Court? The same concept applies here.

Sirius Satellite Radio (NASDAQ: SIRI) reported Q4 and full-year earnings this morning, and I have to say that the company, led by the famous and highly-respected CEO Mel Karmazin, tuned into some good numbers. Revenues for the fourth quarter increased 29%; for the full fiscal year, revenues jumped 45%. The net diluted loss narrowed during the quarter to $0.11 per share versus $0.17 per share in the year-ago period, and for the year, it improved to $0.39 versus $0.79.

Perhaps the best news in the earnings release is the cash-flow situation. The company's free cash flow more than doubled for Q4, coming in at $75.9 million. And, hey, it was positive, which is important to note, since this company has sacrificed free cash over the years to invest in its platform. In fact, management noted that, for the first time, the second half of the year saw positive free cash flow (equal to $8.1 million for the period). And subscriber growth was impressive -- the company gained almost 2.3 million listeners, and it ended the year with 8.3 million subscribers. People gravitate toward the various popular brands featured on the platform, which includes shows by Playboy (NYSE: PLA), Jamie Foxx, and, of course, the king of all media past, present, and future, Howard Stern. There's also a lot of sports programming to add value for subscribers, as well as an upcoming slate of health programming called "Doctor Radio."

So, why does the stock trade in the low single digits? Why is it priced so speculatively? For one thing, there is the merger issue with XM Satellite Radio (NASDAQ: XMSR). Until that goes through, investors will have to wait for further guidance on the combination of the two platforms. Also, the market is going to want to see some consistent reports of positive net income on a GAAP basis to become really excited. I like the numbers currently associated with Sirius, and I think it may offer some upside potential for risk capital. As for myself? I'm not inclined to play it just yet. I'd rather see some technical strength assert itself before jumping in.

This post was part of AOL Money & Finance's Best & Worst of 2007. Voting has now closed and readers have chosen Sanjaya Malakar as the most shameless attempt to cash in on the proverbial 15 minutes of fame. Be sure to let us know in the comments if you are pleased with this result.

When Andy Warhol observed nearly 40 years ago that "In the future, everyone will be world-famous for 15 minutes," the man wasn't kidding. While the toe-headed artist couldn't have predicted the rise of the internet or reality television in 1968, this pair of media outlets now enables anyone with a webcam and a dream to put themselves on the map for one brief shining moment (or even several). Below are some of the folks we hated to love as they flitted across the pop-culture radar this year.

For about six weeks or so, the main topic of discussion at the nation's water coolers was the hairdo of a mild-mannered 17-year old. Sanjaya Malakar -- a contestant on News Corp.'s (NYSE: NWS) FOX Network's American Idol -- divided a nation with his questionable talent and his ever-changing coiffure. Howard Stern launched a campaign, the goal of which was to discredit the show with a Sanjaya victory. Sanjaya took it all in stride ... the tongue-lashings from Simon Cowell, the hatred from America's bloggers, the worldwide attention. But underneath it all, he was a sensitive teenaged boy, one who couldn't quite blink back the tears when he was mercifully ousted from the competition. From that point on, the Idol season wasn't the same. I barely remember who won.

This post is part of our Hottest Products of 2007 feature. Also check out our other Hottest Products of 2007 posts and let us know which product you think is the greatest thing since sliced bread.

On his Sirius Satellite Radio (NASDAQ: SIRI) show one morning, Howard Stern hypothesized that a vague loss of direction or sense of hopelessness is often the backdrop for someone getting a tattoo who wouldn't ordinarily have done so. (The shock jock isn't judging; he has at least two of his own.)

His theory rang a bit familiar ... when I was 26 (old enough to know better), I got some "ink" of my own. Two of my best friends were about to move away, my parents had recently relocated from our mutual hometown, and my boyfriend had unceremoniously ended our relationship. At the time, I had my lower back branded with the orange-and-blue "V" and sabers that trademark the University of Virginia, my alma mater. I did so while repeating three mantras I considered to be quite wise at the time.

First, my tattoo of choice wasn't a capricious decision ... I will always be a UVa alum, and I will remain proud of that fact. Secondly, while larger than I wanted (the artist talked me into a bigger size, noting that it would be "framed by my entire body" -- famous last words), it is in a spot not normally visible in the workplace or in a cocktail dress. Finally, as I flippantly told my friends and my displeased elder relatives, "When I'm 60 and ready to be rid of this thing, they'll have technology where I can just wipe it off, no problem."

The storied merger proceedings between Sirius Satellite Radio (NASDAQ: SIRI) and its hoped-for partner, XM Satellite Radio (NASDAQ: XMSR), took another step on Tuesday, albeit one that was widely expected. Shareholders of both companies gave the merger their collective blessing by a healthy majority.

The sizable hurdles of regulatory approval on the part of the Justice Department and the Federal Communications Commission (FCC) remain. Those opposed to the collaboration say the deal would create a monopoly in the satellite radio industry and point to the failed merger attempt between EchoStar Communications (NASDAQ: DISH), parent of the DISH Network, and DirecTV.

This week, another group added their support to a merger between the two satellite radio companies: XM Satellite Radio Holdings (NASDAQ: XMSR)'s and Sirius Satellite Radio Inc. (NASDAQ: SIRI). A quintet of organizations representing rural Americans presented a letter to Federal Communications Commission (FCC) head Jonathan Adelstein. An excerpt from the letter read:

"This merger is clearly in the best interest of rural consumers because it would allow a combined company to expand upon its existing services with increased efficiencies and at the same time provide rural listeners with more diverse programming and lower pricing ... [the merger] will make satellite radio a more viable option for rural consumers ... even in the most remote areas."

Indeed, a combination of the two companies could bring all 4 major sports, Oprah and Stern, and John Cougar Mellencamp and Bruce Springsteen tunes, virtually commercial free, to households distanced from terrestrial broadcast towers.

Originally announced on February 19, 2007, this partnership continues to be closely scrutinized by the FCC as well as the National Association of Broadcasters (NAB). The latter organization effectively represents the combined company's would-be competition, weakening the argument that the satellite-radio merger stifles competition. But I digress before I slip into a monopoly wormhole.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Once Matt Drudge's report about Don Imus' return to talk radio was posted, his phone probably started ringing off the hook as members of the media elite tripped over themselves to welcome the I-man back to the public airwaves.

The reason is simple: Imus' following is too large too ignore. In this age of declining TV ratings for the network news and declining newspaper circulation, media companies want to reach out to his audience, not turn their back on them. Advertisers will eventually return too once they believe that Imus has really learned his lesson. WABC, the New York station that will be Imus' new home, will have his show on a 40-second delay for that very reason.

The fact that Imus' got a second chance and may even get a third or a fourth one isn't surprising considering the terrible shape of the radio business. Radio listeners of the 1980s and 1990s are today's Internet surfers and iPod users. Stations are desperate for talent such as Imus who already have a following. That's why shock jocks including Opie And Anthony will always have a job in radio waiting for them whenever they get fired for saying something offensive.

WebProNews reports on a rumor that Google Inc. (NASDAQ: GOOG) is proposing to take over Sirius Satellite Radio (NASDAQ: SIRI). This rumor originated with Zachary Rodgers on ClickZ who posted: "A high profile source is pretty convinced ol' Goog is on the verge of snapping up Sirius Radio."

While such a merger would benefit Google, which is looking for a satellite outlet for its dMarc/AdWords radio advertising technology, there is little likelihood that Sirius would cooperate. After all, it's trying to get approval to merge with XM Satellite Radio Holdings (NYSE: XMSR).

I think this rumor is amusing, and if Google wants Sirius to use its technology to serve radio advertisements, it could just wait until after the merger and try to sell it to the new company. It's hard to see why buying a money losing company for, say, $5 billion just to sell it some technology would generate a positive return for Google shareholders.

Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Hunker down with your iPod and set "Just a Lil Bit" to repeat mode ... you may be hurting for new 50 Cent tracks if he leaves the business. Last month, the Eminem protégé (née Curtis Jackson III) made a flippant statement to reporters that he would leave show business if Kanye West's latest release, Graduation, topped 50 Cent's new album, Curtis, in its first week of sales. Both albums "dropped" on September 11.

The publicized sales battle was resolved today, and to Kanye went the spoils. According to Nielsen SoundScan, the man behind the 2005 smash single "Gold Digger" sold 957,000 copies in its first week of release, while 50 Cent's new album sold just 691,000. 50's last album, The Massacre, hit shelves in 2005 and sold 1.1 million copies in its first week. A publicized temper-tantrum after the Video Music Awards and a self-mocking appearance on Sunday's Emmy's broadcast may have helped give Kanye the edge.

Graduation was released on Roc-A-Fella Records, co-founded by Jay-Z, while Curtis was on the Aftermath label, which is owned by Dr. Dre. Both are ultimately distributed by Universal Music Group, a subsidiary of Vivendi Universal.

Sirius Satellite Radio (NASDAQ: SIRI) volatility at 68; Arbitrage spread tightens into FCC decision.

• SIRI is recently up $0.22 to $3.53, over 6%. SIRI and XMSR announced on 2/20/07 a merger of equals. XMSR shareholders will receive 4.6 SIRI shares for each XMSR share.
  
• Cowen says: "We expect FCC approval before Dec. 4, the end of the FCC review period. We believe approval as early as Oct. is possible. Maintain Outperform on both XMSR & SIRI."
  
• XMSR-SIRI arbitrage premium spread is at 12%. Mel Karmazin is CEO of SIRI.
  
• XMSR December option implied volatility of 68 is above its 26-week average of 51 according to Track Data, suggesting larger price risks.

XM Satellite Radio (NASDAQ: XMSR) volatility up; Arbitrage spread tightens into FCC decision.

• XMSR is recently up $1.07 to $14.69.
  
• SIRI October option implied volatility of 71 is above its 26-week average of 53 according to Track Data, suggesting larger price risks.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.