Karmazin Talks XM/Sirius Merger With Howard Stern
February 26, 2007

Sirius Satellite Radio CEO Mel Karmazin was on The Howard Stern Show today discussing the proposed merger with XM Satellite Radio. Karmazin was on for over an hour, tackling topics related to the merger. When asked how the merger came about, Karmazin said, "The big catalyst, and I hate to admit this, because I'm really disappointed in how our stock has performed, is the fact that the stock prices have gotten so low that when you take a look at the value creation of a merger, it becomes something that neither company could ignore."

Karmazin stressed similar themes found in last week's press conference announcing the merger, stating he thinks it will be approved because they aren't competing with XM, but rather with all the other audio entertainment options. He also pointed out that terrestrial radio annual reports list satellite radio as a competitor.

"We all know we've been competing with terrestrial radio so it's very hard for somebody talking about a monopoly of satellite radio, there really is no satellite radio market, there is an audio entertainment market," said Karmazin. "The fact that anyone would think we are not competing with terrestrial radio really is not even an argument that can be made."

Karmazin also revealed there was a meeting with all five FCC commissioners last week after the merger announcement, saying he was met with "skepticism because a lot of media mergers have taken place and there is a general sense against media mergers. We talked about why this is different. We talked about how these companies compete in a very big universe of audio services. We talked about how we are not making money and this isnít about very profitable companies merging and cutting out benefits to the consumer."

Discussing the roots of the merger talks, some of which were held at Mel's apartment, he stated it didnít work out for a long period of time, because the companies couldn't agree on a proper split before settling on a 50-50 deal. He said a 55-45 split one way or the other was first discussed with XM feeling they deserved the bigger share due to a higher subscriber count and better relationships with car companies that produce more cars, while Sirius argued they had better content, a stronger brand and were growing faster than XM. "At the end of the day what prevailed [was 50-50]," said Karmazin, who also said he was willing to step aside to make the deal, though there never was discussion of another CEO.

Karmazin feels "confident" the merger will get approved and "if allowed to combine will be able to effectively compete down the road against all of the technologies out there. If it is not approved, I'm less confident but I'm also optimistic."

He also stated, "If, in fact, the merger did not happen, I absolutely believe that Sirius would continue to be a successful company. From everything that I've heard from the management of XM, they believe that they to would be successful."

Breaking News
iHeartMedia Oklahoma City Names JJ Ryan PD For KJYO & KXXY
Entercom Names Richard J. Schmaeling EVP & CFO
Doug Gottlieb Joins FOX Sports Radio & FS1
March 21, 2017
Beasley Broadcast Group Reports 4th Quarter and Full Year 2016 Results
Chip Arledge Appointed OM For Cumulus Media Shreveport/Bossier City, LA
KXQQ/Las Vegas Names Natalia Hernandez As New Midday Personality
In Brief - March 21, 2017
March 17, 2017
Cumulus Reports Results for Fourth Quarter and Full Year 2016
Entercom Austin To Move 96.3 FM RnB To 95.9 FM
March 16, 2017
iHeartMedia Names Geoff "G-Off" Owens PD For KXJM/Portland & KUBE/Seattle-Tacoma
c3 & FMC Statement: Elimination of the NEA, NEH, and CPB Indefensible, Shameful, and Senseless
iHeartMedia Introduces SmartAudio
Condť Nast Acquires Pop2Life And Ribyt
March 15, 2017
Radio One Houston Names DJ Riddler MD & On-Air Talent/Mixer For KROI (92.1 Radio Now)
iHeartMedia Names Mark Fuhrman Area President in Pittsburgh/West Virginia Region
REAL 103.9/Las Vegas Names Roxy Romeo APD/MD
iHeartMedia Washington, D.C. Debuts Cherry Blossom Radio
KBEB/Sacramento Names Bryan "B-Dub" Washington PD
iHeartMedia Portland Debuts The New 103.7 The Legend
March 14, 2017
The iHeartRadio Music Festival Returns to Vegas This September
KMGA (99.5 Magic FM) Adds Bryan Simmons as PD/PM Drive, Doug Durocher as AM Co-Host
Veteran Music Exec and Producer Tommy LiPuma Passes Away
Magic 92.5 Turns 20 With An All-Star Birthday Bash
March 13, 2017
Alpha Media Portland Names Sean Demery PD At KINK FM
Music News
Chance the Rapper, The Killers, Muse & Arcade Fire Headlining Lollapalooza
QuickHits: Ed Sheeran, Chuck Berry, The Decemberists
QuickHits: NIN, Missy Elliot, Frank Ocean, Pitbull, Enrique Iglesias, Sublime
Rock Pioneer Chuck Berry Passes Away
The Entertainment World Remembers Chuck Berry
Ed Sheeran Spends Second Week Atop Billboard 200
QuickHits: Drake, James Blunt, Spoon, Bob Dylan
Quick Hits: Coldplay. BET Experience, Weezer
Quick Hits: The Chainsmokers, Pitbull, Ohana Music Festival, Arroyo Seco Weekend, Feist
Ed Sheeran Earns Biggest Debut Week of 2017
Quick Hits: Drake, Pearl Jam, Fifth Harmony
Lorde's Melodrama Arrives June 16
U2 Announce 30th Anniversary Joshua Tree Box Set
Ed Sheeran Announces Massive North American Tour
Quick Hits: Halsey, Charli XCX

Sam Milkman, EVP
Coleman Insights

Search FMQB.com
FMQB Member Login

Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!