Karmazin on Sirius/XM Merger: "We will be looking to kick their ass... we are competitors."
Wednesday, November 8, 2006 at 10:24 AM
Tags: 2, XM
During today's earnings call, Bear Stearns Analyst Robert Peck asked Mel Karmazin about what he felt was the "pulse" about the potential merger between XM and Sirius, and whether it's a feasible situation.
Mel Karmazin poignently responded that while there would be a "good amount of value creation" in the case of the merger, he really has nothing further to talk to about it.That's not to be taken as a positive, or a negative - just that there's nothing to say.
Karmazin continued:
"You should assume that we will be looking to kick their [XM's] ass, in the fourth quarter," Karmazin added, "...and they're looking to do the same to us. We are competitors."
Talk about not mincing words.
Hopefully that sends a clear message (to Jim Cramer particularly) that Sirius and XM are wholeheartedly locked in a battle for marketshare against each other.
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Comments
Good to hear. I'm so tired of that stupid rumor. The government won't let it happen... unless one of them sells their spectrum and operations to another company to provide competition... but what sense would that make. Personally, I'm waiting for Google to buy XM. Seems like their advertising genius could be applied to a medium like satrad where low spot penetration is a selling feature...
Posted by: TVGenius ? | November 8, 2006 12:57 PM
It is so going to happen. Peck should have asked Mel why there has been no insider buying or selling for 6-7 months.
It's so very done.
Coming your way Q1-2007.
Mel is a " roll up " guy.
Posted by: pockpie | November 8, 2006 2:11 PM
A merger is not out of the question from a governmental perspective, but it would be an uphill battle. For now, we really want both companies to do well -- if one were to tank, it will hurt the industry. Sure, I want XM to do better, but Sirius needs to survive as well.
As for Mel's comments...he's the one who praised the Stern deal as a great deal for Howard, but not such a great deal for Sirius (until he subsequently was hired).
Posted by: iband | November 8, 2006 2:28 PM
Am I the only one who thinks this was an absolutely rude and unprofessional statement?
Posted by: J. Mainelli | November 8, 2006 7:28 PM
Mel is Jesus Christ reborn!
Posted by: Frank Z ? | November 9, 2006 8:49 AM
"As for Mel's comments...he's the one who praised the Stern deal as a great deal for Howard, but not such a great deal for Sirius (until he subsequently was hired)."
Uh yeah, because he saw the actual numbers which caused him to subsequently say, "we would have had to pay him MORE if he signed up today." He basically continued to say that he was glad that they tied him into a 5 year deal instead of a one year.
Posted by: Frank Z ? | November 9, 2006 8:52 AM
Anyone who thinks a merger isn't under discussions go back and read executive statements over the last 18 months.
We've gone from " I'd like to " and "We're not interested in our compttions specualtion " to " No comment" and I have nothing to say.
Sirius buys XM and goes to 7-8 on the news and 10-13 within 12 months of announcements.
Pockpie sees all... knows all.
Posted by: pockpie | November 9, 2006 12:56 PM
This Sirius-XM merger--I would not like it. I have a complaint against Sirius for some bad business practices and I now have XM radio. If XM radio is bought out by Sirius, I would have to be old fashioned and return to listening to terrestrial radio stations instead of satellite.
Posted by: vernon ? | November 22, 2006 10:52 PM
What "bad business practices" are you talking about?
Posted by: realwx ? | November 23, 2006 11:59 PM