DirectTV, Sirius enter talks

DirecTV Group Inc, the largest US satellite-television provider, is in talks with Sirius XM Radio Inc about a possible transaction, according to people close to the situation.

An accord may help prevent Sirius XM from seeking bankruptcy protection or agreeing to a deal with satellite company EchoStar Corp less than a year after Chief Executive Officer Mel Karmazin completed the merger of the only two US pay-radio providers. Sirius XM has $3.25 billion in total debt and has until Feb 17 to repay $175 million in bonds held by EchoStar. Both EchoStar and DirecTV, controlled by John Malone's Liberty Media Corp, could use Sirius XM's satellite capacity to integrate radio and television services, according to Fred Moran, an analyst at Stanford Group.

EchoStar has been buying Sirius XM's debt since making an unsuccessful takeover bid in December, according to one person with knowledge of the matter.