Karmazin: Sirius Will Sue If Merger Fails
Sirius Satellite Radio plans to sue the federal government if the Federal Communications Commission does not approve its merger with XM, Sirius’ CEO, Mel Karmazin, said late last week in an interview with the Chicago Tribune’s editorial board, coming on the eve of Tuesday’s shareholder vote.
In the interview, Karmazin also told the board that the combined company would consist of only four percent of the overall radio listening market, and that the only way the satellite industry can make money is if the two companies merge. He also said that he doesn’t regret the nine-figure deal that brought Howard Stern to Sirius in early 2006, since it has resulted in the company’s subscriber base growing tenfold.
XM and Sirius shareholders are scheduled to vote Tuesday on whether or not to recommend approval of the merger. Final consideration by the FCC and Justice Department will come after that.