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Sirius Boss Says Regular Radio “Sucks”
10-Sep-2008
Written by: E. Van Dril
Mel Karmazin used to be the head of the Howard Stern show when he was on regular radio.
In the attempt to make the welding of XM and Sirius together on Wall Street, Mel Karmazin said that regular radio sucks.
One reason is because he believes that is the case. The second is to make sure that his company can be trusted by big-time investors as a solid long-term investment.
The CEO's message was delivered at a Merrill Lynch conference, but didn't resonate as he would have hoped because the Sirius XM stock dropped to its lowest amount in five years.
Despite its clarity and combined package of channels, the stock's shares fell 10 percent Tuesday to $1.14 on the Nasdaq. The previous low was on May 21, 2003 when the Sirius stock was trading for $1.07.
Karmazin set the target amount of subscribers at 19.5 by the end of 2008, and at 21.5 million customers at the end of the previous year.
These amounts, however, seem to be underestimations, according to experts.
Part of the reason for the declining stock price and underestimation from Karmazin is because of the flailing American automotive industry, which continues to plummet.
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