Sirius CEO calls merger an "uphill battle"
Tags: 2, XM
Karmazin also acknowledged that Wall Street estimates there is an "80 percent likelihood that the merger is not going to happen." In a generalized response to Senator Kohl's comments denouncing the merger, Karmazin said, "There are some people out there that think that any combination [merger] is bad."
He also noted that "the NAB is a very powerful lobbying organization and we are a relatively small company. We are fighting a very well-oiled lobbying organization in the NAB."
"Why are they hiring John Ashcroft and hiring all these advisors? It’s simple... because we do compete with them. They believe that if we combined, our company would be better, it would be stronger," Karmazin added.
When asked about the prospects of the company should the merger not be approved, Mel said, "Our business model is very much on track. I believe not only are we going to not be out of business, we’ll be a very successful profitable company down the road."
It's good to see Mel taking a somewhat "realistic" (for lack of a better term) approach to the merger prospects. To ignore the cynicism over the deal doesn't instill anymore confidence than if he acknowledges it. People expect management to remain positive over regulatory approval, but also don't want everything to be sugar coated. Mel does this well.