Sirius XM Radio CEO Interview

Cramer welcomed Sirius Satellite Radio (SIRI) CEO Mel Karmazin to the show to talk about his company’s prospects after the Federal Communications Commission approved its merger with XM Satellite Radio (XMSR). Karmazin said that the merger took too long but it will be worth the wait in the end. He told investors that he’s looking forward to watching the stock rise as the true value is unlocked between the two companies. “I can’t control the stock,” Karmazin said. “I can only control the company. And we are doing everything right.” Karmazin defended his decision to raise $1.25 billion of additional capital and he called the idea of Sirius defaulting on its debt ridiculous. “All we can do is to grow our free cash flow, get the stock to reflect our value,” Karmazin said, “and if we screw people along the way because they bet against us, that’s there business.” He said the new company will have $2.4 billion in revenues and in the future they’ll offer consumers the option to subscribe to both services for $25.90 a month. He told investors to ignore the negative report from Goldman Sachs Group on the company and he urged investors to look at the other positive outperform ratings from the street on the stock. Join the fastest growing community of small cap investors at Stockhideout.com

2 Responses »

  1. I am a small investor who has kept the faith and held my shares of SIRI for the past year. I believe that we are in the midst of change for radio that should take another 5 years to evolve; much like cable vs. antenna reception did back in the 70′s. Back then, everyone thought cable TV would be a bust….

  2. Siri is making progress toward the positive side of the profits. They are a selling feature of the automobile. They are slick and they are not going away. There maybe some light at the end of their tunnel. This is the jibber jabber. You willing to take the risk for the reward that is coming.

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