Spokespersons for both Sirius XM and EchoStar Communications are declining comment to Betanews this morning after a New York Times story last night cited unnamed sources as saying the two are in business negotiations.

According to the story which only cites sources "involved in the process," the satellite radio broadcaster is considering filing for Chapter 11 bankruptcy protection, after which it may consider being bought out by satellite TV provider EchoStar. The CEOs of both companies, the Times sources state, are personally involved in these talks.

Shareholders of the recently merged XM and Sirius were among the most vehemently opposed parties to the merger in the first place. Last November, shareholders sued the company, claiming that a merger of the two broadcasters' financing debts ended up eroding share value. Last December, as Seeking Alpha reported, 75% of those shareholders approved a plan that would enable the issuing of more than double the company's outstanding shares, in an effort to find new underwriters for those debts. A reverse stock split was later enabled to prevent the appearance of diluting share value lower than it already was -- trading at about 13 cents per share at the time, and trading below 5 cents now.

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Shortly thereafter, as The Motley Fool reported last week, a big one emerged in the form of EchoStar. The Fool speculated at that time that if EchoStar continues to make offers for Sirius XM's financing debt, and therefore to large degree for the company itself, the result could put Sirius XM effectively in play with other potential suitors such as DirecTV and Clear Channel Communications.

Such an outcome may not be what shareholders would prefer, according to analysis represented by MarketWatch this morning.

It's a complicated situation, and we prefer to report more substantive material than general speculation. But both EchoStar and Sirius XM declined all comment on such matters to BetaNews this morning.