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Thread: Nine CEOs Who Will Go By The End Of The Year

  1. #1
    zcurzan is offline
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    Joined: Jun 2008 Posts: 404

    Nine CEOs Who Will Go By The End Of The Year

    Sirius Satellite (SIRI) Mel Karmazin only had the No.2 spot at Viacom. After falling out with controlling shareholder Sumner Redstone, Karmazin decided to take his considerable skills as a media executive elsewhere. At the end of 2004, he took over as CEO of Sirius. He engineered a merger between his company and rival XM Satellite Radio (XMSR) well over a year ago, and that engagement is still hung up in government bureaucracy.

    It must have dawned on Karmazin some time ago that, even after a merger, the chances that satellite radio will be a big money maker are exceedingly small. Everything from the Apple (AAPL) iPhone to cell phones and HD radio now compete in the mobile music and programming industry. Sirius and XM are no longer growing rapidly. They depend on new car sales for a large portion of the customer acquisition. Each company has over $1 billion in debt and negative operating income. This is not a good environment for refinancing junk debt. Karmazin may stay to see the deal approved, but there is no reason for him to stay beyond that. His creation has collapsed before it could be finished. This is a job for a restructuring expert.
    http://tinyurl.com/6lo22j

    I know Mel has the reputation for building up business and then selling them off. But do you really think he will bail on SIRI so soon, before all the work he put into negotiating the merger has its effect on the stock price long-term? He is going to want his name to be associated with the turn around of the companies.

    The only way I see him gone is if the combined entity is bought out.
    Last edited by zcurzan; 07-22-2008 at 11:01 AM.

  2. #2
    john is offline
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    Joined: May 2008 Posts: 2,836
    With all due respect to Doug, He he took on to many CEOs and must not have done detailed background research on them all. What in gods name is Mel known for, taking small and non profitable media companies and turning them around. It is my opinion that Mel believes this to be his legacy, that will make him a legend. Lets face it, SIRI was not doing that well before he got there. Look at what has happen since, spending is coming under control, they have gone from 2 million to almost 9 million in just over 30% more then the same time it took them to get to 2 million. I think Mel knows, this will be big. Just how big is something we can talk about after a decision by the FCC. While this point in time, is the end of the merger process, it is only just the begining of what I believe Mel has planned for this sector. Just a common sense opinion, with a little speculation tossed in.

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