Shares of Satellite Radio Firm Worldspace Drop 31%; Hit 52-Week Low

Authored by Mark Hefflinger on August 10, 2006 - 1:06pm.

Silver Spring, Md. - A year after its initial public offering (IPO), the share price of Worldspace, a provider of satellite radio service to international markets, fell 31% on Thursday, reaching a new 52-week low of $2.26. The sharp decline came after the company released worse-than-expected quarterly results on Wednesday with a loss of $36 million. Silver Spring, Md.-based Worldspace raised over $100 million through its IPO last August, pricing its shares at $21 per share. The company was founded in 1990 by Noah Samara, its chairman and CEO, with a focus on providing digital satellite audio, data and multimedia services in Africa and Asia. Samara was an early backer of XM Satellite Radio.

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