Wow... I am not 100% behind you on that "Hugh must go" statement. I mean, really, exactly what happened? Stern drew as expected a large number of subs and recognition to Sirius. One quater before GM had the "employee pricing" driving auto sales and OEM's of XM. This caused spending that if it was spread out over the usual sub count (CPGA) would not have seemed excessive. Then you have a director who was not a true employee, infact worked for Bear Sterns, leave and with a nasty letter. (What company hyped a merger today?) New products like the INNO were delayed to market due to the RIAA (this is parlty speculation based in fact) Then the NAB and the FM modulator issue that was not exactly noticed by Sirius but had to be by XM due to the class actions being filed. (who is really on board with these class action suits? I am an investor and I am not) So... what6 good has come over the year. look back. So many good things have come and gone. New satellites, the XM passport, integration in to the home stero market, integration in to windows media player 10 and now Vista, was it dell also? Alltell, Cingular, GM and honda ramping up installs, Hyundai adding as I type, An accounting change to reflect only payed subscribers, Zip car, Oprah, ... I mean.. My goodness .. the things that have been done are amazing but they are all hidden or tarnished by a Class action lawsuit? Really? on what basis is the law suit? It was primarily about CPGA and there was nearly no way to know where it would end up till late December. Hugh sold his stock options in the beginning of december at the Historical high point of the year for XM stock. Hugh did not unload all of his shares, He did not unload 1/2 of his shares, It was less than 1/4 of the shares. The Debet refinancing was also huge, who noticed that? you mean to tell me that not one "ANAList" noticed or commented on it? Where is the Tuna? where is Kit? Meanwhile Chrysler has ramped up installs and the one year subscription along with the perfectly legal counting method mad it appear that Sirius was catching XM and fast cause they do not churn out the unpaying "Car" for nearly 1.5 years resulting in an additional 1,300,000 or so subscribers on the books in 6 quaters that are 100% legal but counted in a way that XM does not use. how much has sirius gained on XM in the last 1.5 years? I am not knoking sirius as they are doing a great job. All I am saying is that Hugh is going a bang up job as well and quite posably running a tighter ship but will anyone notice? Has anyone noticed XM deleveraging over the last 2-3 years? Nope, only the total loss for each Q. Have many people comprehended the credit facility now available to XM and do they fully comprehend where it comes from?

So... Should Hugh step down? No

But would it give a quick shot in the arm for the stock price? heck yes. Now is that a reason for a CEO to step down? I think Not

Jeff
holder of both XM and Sirius shares.

Time for Mel Karmazin to go also.

Yeah, Stern was a big failure and only has 5% of his listeners to join him. He is fucking crippling a whole satellite company! Could O&A do that?

"It was clear that XM overreacted to the pending competitive threat (who could that be?) in late 2005, and worse yet, that overreaction barely effective."

O&A zombies are the worst, worse than Stern zombies. I'm not saying 70% of people who joined Sirius was because of Stern, I'm saying that Stern brought Sirius into the spotlight and made Sirius not look like a dumpy old second rate satellite company. People who wanted satellite radio for the music, comedy, or exclusive talk really thought long and hard on whether to choose XM or Sirius after the Stern deal, whereas before the Stern deal, it was a no brainer to get XM because who even knew what the fuck a "Sirius" was.

"And then there was the class action lawsuits. And then the revised reduced subscriber guidance, again, and again. And then XM missed that goal."

1st Quarter Prediction for the end of 2006: Over 9 Million Subscribers
2nd Quarter Prediction for the end of 2006: Over 8.5 Million Subscribers
3rd Quarter Prediction for the end of 2006: Over 8 Million Subscribers
4th Quarter Prediction for the end of 2006: Between 7.7—7.9 Million Subscribers

And they even missed that goal. What an embarrassment. XM is becoming a big failure. “The Stern Effect” still exists.

It's time for Mel Karmazin to take over!

you have to make that response longer

Incredible. For this to come from you is truly significant. I respect you for saying what everyone else is thinking.

That's a great post, Jeff.

While I can understand, and wouldn't argue with, anyone's view that Panero should leave, I'm still not convinced personally that it would be best for the company.

Until two years ago XM clearly was hitting on all cylinders, and its management was performing impeccably. Then, came Stern -- and XM zigged when they should have zagged, and the game plan of "no real marketing, just let the viral growth be viral" fell flat.

There is one mistake XM didn't make, and they're better off for it -- and that's hiring Stern -- at least they avoided THAT bungle (maybe, the most ignorant-assed business decision I've ever seen or heard about). So, things could have been much, much worse.

I no longer have the confidence I once had that XM can turn the ship around. Not to say they can't, but surely not saying they will.

Ceding retail to Sirius is a mistake, and they damned well ought to take some of the money from selling XM 4 and use it to rebuild the brand. Six months ago I thought they were going to take measures to do it, but they haven't and at this point, I don't see anything that makes me believe they plan to.

That being said, they ARE doing some stuff right that they weren't before. They ARE beefing up content, and ultimately will reach a point where it is undeniable that XM's content is, overall, "better". That is, more attractive to the average buyer. The Q1 results should tell us whether they've been able to make any headway on churn (not Q4, unfortunately). And the OEM programs are starting to get rolling. Hopefully, new hardware is around the corner and there will be something innovative -- something beyond simply more memory -- to generate some interest in the XM brand.

XM is a freaking bureaucracy. They need to fire the GD lawyers, first of all -- or at least, move them to a vacant warehouse down the street. If you want to squirrel a good business deal, get yourself a good lawyer -- they'll do it every time.

Then, management should become focused on becoming more agile. When someone complains about customer service, take it seriously, and fix it. Before you go home that day. When you find out the displays suck at Walmart, get people out there to deal with the problem. When you find out a Nissan dealer is pushing Sirius over XM, handle it - same day; get somebody on the phone with them and work it out. It is absurd that these kinds of conditions have been allowed to persist all this time.

Panero should stay, but he (and the rest of them) need to become more proactive and realize that they are fighting for their lives at this point.

Oh, and forget all this merger nonsense. It is just more crap to help you take your eye off the prize.

Frontmed said "Ceding retail to Sirius is a mistake"

You are an idiot. Do you really think Panero woke up one morning and told Parsons that he would just let SIRIUS have retail? XM had no say in the matter, SIRIUS took retail.

XM management has completely lost credibility with the street, except that jackass Jacoby. Missing thrice lowered guidance is completely unacceptable. Allowing some of your exclusive talent to rescue terrestrial radio has done nothing but hurt both companies in the retail area. It's quite obvious to most people that Panero must ride off into the sunset.

Was this story just commentary on Ryan's part on an actual article from a news source?

Wow, it took all of three comments for someone to make this post about Sirius and Stern (with a touch of O&A bashing).
Panero should go for the benefit of XM as a company, it really has nothing to do with Sirius.

>>> You are an idiot.

Personal attacks are the product of an exhausted mind.

>>> Do you really think Panero woke up one morning and told Parsons that he would just let SIRIUS have retail?

I do believe that is essentially what happened. XM decided it wasn't worth spending the company into bankruptcy to win retail share. Sirius decided that losses don't matter, because the shareholders have an endless tolerance to continue funding the black hole that is Sirius.

Nate Davis should replace him as CEO. Unfortunately, I think Panero's job is safe....

Matt: This is entirely commentary on my part.

" Incredible. For this to come from you is truly significant. I respect you for saying what everyone else is thinking."

Though I'm an avid Ryan/Orbitcast supporter, there is nothing incredible or overly ballsy about stating the long overdue obvious. Calling this one now is like debating if Iraq is going well.

My concern about XM's management is that Gary and the BOD has both kept and supported this inept fellow.

If you want to get to " root cause analysis " Gary and the BOD should be replaced for NOT removing Baby Huey.

This article is absurd (nothing personal Ryan). You don't actually mention any reasons other than its some sort of time. The difference today is potential. Sirius has less potential. The Stern effect is ending, and they are going to have to start showing the churn on their factory installs (from over a year ago). They have no sexy gadgets or technologies (well they do have Cartoon Network in the backseat..almost). Stern is an asset that will soon become a liability. XM on the otherhand, has so many new mini-card home recievers, car radios, and portables. This is a big deal. People no longer will need to pay extra subscription fees for multiple radios. XM will soon be WAY ahead at the retail counter as far as gadgets go.
XM reporting only paying customers is another case of potential, this is the honest, transparent way. Sirius is shrouded in mystery with little or no churn rates posted. Sooner or later they are going to have to come clean... These are all looking beyond the current "Year of the OEM". The future is bright for both sides. For now Sirius seems to have the momentum, but watch out because XM is still there and it has some real goodies coming....

Oh, I forgot to elaborate on my Stern becoming a liability comment. Because Sirius counts their 1 year trial from the time of install (and then extend it to a year from sales) and because Sirius OEM sales during that 12-15 month period time based on Sterns BONUS was approx 2 million subs. Those two million subs alone pushed the Sirius subscriber number over the amount set for Sterns Bonus... And Sirius knows that!!! Although Stern has put them on the satellite radio map, this Sterns deal is NOT paying off for them....

Perhaps it is Gary Parsons that needs to go. Panero has always worked in his shadow. Don't get me wrong; Parsons along with one or two others is the brains behind the operation and is very good at what he does. I have enormous respect for his vision. However, I believe he controls Panero as well as Davis and would only bring in someone else that he could control. He has put Davis on a longer leash, but he want hesitate to reel him in as necessary. If Parsons were in less a position of control, then that would allow management to think outside the box and get the job done. Before firing Panero, I would fire the legal staff. Management needs to take more risks and I believe legal is getting in the way.

Panero has always made an impression on me. He is a man of character and principles. There have been times when I could not get answers to simple questions from investor relations. Panero took it on himself to answer the questions and took the necessary actions to solve the problem. I was both impressed and disappointed. I was impress that he took the time to exchange a dozen or so emails with a shareholders. I was disapointed that HE had to do it. It should have been done at a lower level. It appeared to me that he didn't have control of those working under him. I believe it has always been Parsons calling the shots. To see change, it must start at the top, and the top is Parsons. He needs to be an integral part of XM, but in a capacity to follow management decisions, not to set the direction.

Who knows what is really happening behind the scenes? A result of a possible merger or just a new face needed for the company? I guess it had to be done, I just want to see Xm go in a more positive direction.

I cant belive what i just read.

I think that he has done alot of good but really who could replace him.

Rubicon,

Men of principles don't pump and dump and get sued do they ? ...using Company resources to defend themselves.

That was the nail in the coffin for Huey.

Mel Karmazin...

If Hugh left the stock would go up 10% if Howard K. Stern replaced him.

Get a real CEO and it would probably go up 20%.
-------------------------

But seriously folks..... talking about replacing him as CEO is like talking about divorce at home. Once the topic is brought up, it's already too late.

The results haven't been there, and it's time he goes.

if the stern deal was so bad, then what is everyone's concern here? stackpointer, you think xm would be worse with stern? the only reason sirius is where they are is because of stern. xm would have finished sirius if they signed him. his deal isn't much more then xm's deal was for baseball, and he would have brought xm tons more subs. apparently xm's business model is so much better and so much different than sirius'. everyone's riding their arguement on churn. the retail market shows what the majority of the people want. sirius' oem market is just as strong if not stronger than xm's.

what does sirius have to do with panero? people here need to realize that xm is so close to making tons of money. its gotta be hard to start an industry that requires so much money to run. to try and make radio a money making machine with so much competition is not easy. give panero a chance to prove that his hard work will pay off.

Hmm, the article seems *really* one-sided and does not provide a clear picture.

There is a lot of talk about XM's stock peak price and it's current peak price, and basicaly alluding to the fact that this is XM's fault. What is not mentioned is the almost identical trend in Sirius's price. It reached a high of almost $10, and now struggles to hit $4. That's a ~60% drop in stock price. XM peaked around $40 and is around $14. A VERY similar rise and fall.

When 2 companies in the same market have very similar stock swings, and they have different problems, that points to stock prices moving because of the market itself rather than a single CEO. Did Panero somehow cause SIRI to ride the same stock wave(s) as XM? No.

When SIRI and XMSR were at their peak, it was a bubble. Just like the .coms and just like the realestate market (though the realestate market moves MUCH more slowly). The bubble was based on too much hype and potential. XM lost a good deal of Sub momentum, and the Stern deal watered down the value of SIRI to a certain extent. Lots of little things had an effect on the prices, but when you get down to it, it was overall based on where WallStreet thought the markets were heading vs where they thought they were heading 6 months previous, and it's not like it's all Panero's fault.

Though it was an intersting article, it was obviously skewed, and in the end not fair (IMHO) and didn't paint a TRUE picture of why things went the way they did (with both companies and the overall market).

Brain21