The fearless and successful Mel Karmazin, a New York boy, has pioneered the greatest radio transition in history with Sirius XM. Sirius XM is the leader in satellite radio which broadcasts anywhere in the world. What does that mean, well you can listen to Howard Stern, The Pulse, the classics and many other stations, anywhere, anytime. They are all under one roof at Sirius XM.
However, as a result of its success, there are the Darth Vaders out there who want to take it over. Why not, its the most powerful and innovative radio group and the stock is only trading at $1.81 (SIRI.O).
So here is what’s going on. John Malone’s Liberty Media Corp took a 40 percent stake in Sirius two years ago as part of deal to lend it $530 million so Sirius could stave off bankruptcy. Liberty has the option to increase its holding above 49.9 percent after March 2012.
Karmazin, who took over the helm of Sirius in 2004, said his contract ends at the end of 2012. Karmazin, who spoke in New York at the Reuters Global Media Summit recently, said that Liberty Chairman Malone and CEO Greg Maffei should be very happy with the deal.
However, after Karmazin’s exit as President from Viacom and CBS due to a clash in authority with Chairman and CEO Sumner Redstone, Karmazin acknowledged that he would not be happy being the second man in charge if Sirius is taken over by Liberty . . . signaling his departure. [Reuters]
Analysts project that Liberty will in fact take over Sirius. A good stock to buy before March, 2012.
On another note, Ozzy Osbourne is scheduled to take over The Boneyard on Ch 38 of Sirius XM. Stay tuned !