By Demian Russian
Sirius XM Radio Inc. (NASDAQ:SIRI) announced today that its Chief Executive Officer Mel Karmazin has informed its Board of Directors that he will be stepping down as CEO on February 1st, 2013. While Karmazin’s current employment contract expires at the end of this year, he has agreed to remain as CEO during a month transition period. Karmazin will also leave Sirius XM Radio’s Board of Directors in tandem.
Sirius XM Radio’s Board of Directors has formed a search committee, chaired by Liberty Media (NASDAQ:LMCA) CEO Greg Maffei, which also includes Sirius XM board members Eddy Hartenstein and James Mooney, to consider internal and external candidates for Sirius XM Radio’s next CEO.
“SiriusXM is an extraordinary company with an incredible team. It is an honor to come to work here every day where we truly deliver the best radio on radio. I am incredibly proud of what we have accomplished. Given where we started, it is amazing that SiriusXM has grown to become the largest radio company in the world. With a deep bench of corporate talent, a roster that includes the most in-demand on-air personalities and a wide-range of exclusive programming, SiriusXM has never been better positioned than it is today. We continue to grow our subscriber base to record levels and our financial position has never been stronger. Importantly, the commitment to delivering innovative new products and technologies is very strong. SiriusXM has a strong foundation to build on for the future and there is a great team in place to keep the company moving forward. I am confident that SiriusXM’s best years are ahead.”
– Mel Karmazin, CEO, Sirius XM Radio
“We appreciate the tremendous job Mel has done for the Company in overseeing the merger and delivering outstanding operating performance. While we understand, we regret Mel’s decision to pursue other interests and are grateful for his willingness to oversee a smooth and orderly transition”
– John Malone, Chairman, Liberty Media Corporation
“On behalf of the Board of Directors, I want to thank Mel for his significant contributions to the Company. Under his leadership, the Company underwent a transformative merger and a financial restructuring that has enabled SiriusXM to deliver significant value for shareholders. Our record breaking financial results are a testament to Mel’s leadership and strategic planning, and we continue to exceed our expectations with all-time high subscriber numbers. Thanks to Mel, we are well-positioned for long-term growth and value creation. We will miss Mel — and the Board wishes him the very best in his future endeavors — SiriusXM has a strong executive team in place and we are very confident in our business and our future prospects.”
– Eddy Hartenstein, Chairman of the Board of Directors, Sirius XM Radio
Sirius XM Radio (NASDAQ:SIRI) closed the day down 0.04 to $2.87 and is trading down 0.05 to $2.82 in After Hours trading.
Demian Russian is the Editor-in-Chief of Satellite Radio Playground and Market Playground.
Disclosure: Long SIRI
Contact the author: DemianRussian@SatelliteRadioPlayground.com
