Mr. Karmazin goes to Washington
Attempting to head off expected government resistance to his company’s proposed merger with XM, Sirius Satellite Radio CEO Mel Karmazin appeared before the House Antitrust Task Force Wednesday and vowed to keep satellite radio prices down.
In hearings to discuss the legalities of the nearly $5 billion proposed merger, Karmazin testified that Sirius will not raise prices and may even lower them. He also vowed to abide by government-mandated price regulations, if only for a limited period of time.
He also repeated, multiple times over the course of the two-hour meeting, that the combined company would not be a monopoly, his reasoning being that the combined company will compete with traditional terrestrial radio, the expanding market of HD radio, iPods and other forms of in-car entertainment.