Karmazin Says Conditions Could Lead to Merger Collapse
The proposed restrictions on the merger of XM and Sirius Satellite Radio, if as tough as reported, could cause the entire merger to collapse. That’s a warning issued Wednesday by Sirius CEO Mel Karmazin on the company’s earnings conference call, the radio news magazine RadioInk reported.
While Karmazin still believes in the merger, he said, if conditions placed by the FCC are “so egregious that they’re not in shareholders’ or subscribers’ best interest,” he is not hesitant to abandon the merger.
The companies are awaiting word from the FCC on the merger’s approval. Members of Congress, including House Energy and Commerce Committee Chairman Rep. John Dingell, last week called for tougher subscription restrictions on the proposed merger.