By Brandon Matthews
Last night Sirius XM Radio (NASDAQ:SIRI) CEO Mel Karmazin appeared on The Charlie Rose Show on PBS. The extensive interview began with a recap of the merger process and Liberty Media’s (NASDAQ:LMDIA) rescue of Sirius XM earlier this year. Some discussion ensued in which Karmazin was able to detail the nearly $1 Billion swing to profitability the company realized in 2009 from merger synergies.
Karmazin and Rose then began a discussion of the history of radio and other media companies. He detailed his belief in the necessity that great content drives growth. Karmazin sees little growth potential in traditional media and explained that advertising based media is having a problem monetizing its content.
Much of the interview turned into a commercial for the content available on Sirius XM Radio, such as the NFL and Howard Stern. In fact, the recent television ad was discussed and aired live on the show. Focusing on Stern, Mel stated that Howard is a “great partner” while explaining that negotiations have not begun and that Stern’s contract does not expire for another year. Karmazin called Stern “the single-most influential, most successful radio personality in the history of radio.”
Karmazin made a point that Sirius XM will seek to continue its partnership with Howard Stern. He explained that Stern is able to provide 4 to 5 hours a day of live content that is funny and entertaining, compared to comedian’s who are barely able to put together a single one hour piece.
To view the entire interview, including discussion of Google (NASDAQ: GOOG), Oprah Winfrey and Martha Stewart, click the photo above.
Position: Long SIRI
I thought Mel spoke very well and the interview was lengthy BUT, sadly, Mel really didn’t provide anything new from an investor point of view– not that I was really expecting anything revealing. Time is short and I for one do not want to see a RS for the simple reason that the likelihood that I will ever get back what I put in will be even further remote. I hold at $3.10/share, we are now what, at 0.58/share. If the do a RS AND the stock is shorted way down–which I belive will happen–then I so deep in the hole that I will not even be aboe to see any light. HAVING SAID THAT, I respect your (Brandon) opinion and appreciate you allowing me to express my opinion. Thank you. timd
Newman, tell him what a great deal the R/S will be for his investment. You can even leave out his fear of the shorting. Tell him what the PPS will have to be for him to break even using your 1/10 scenario.
You haven’t averaged down, and you want people to feel sorry for you? Sorry no sympathy here, but thanks for the laugh.
Brandon,
Any news on the debt that is supposedly due today?
Brandon can have his opinion, but the board at SIRI im sure have in their mind what they will do already and is not taking cues from this website. Let it be already, I enjoy this site but you guys are all paranoid. Another example is the Charlie Rose bit – and you want to hear about the RS, Mel and company know what they are doing and the show last night is to talk about the company and content – more or less a free 45 minutes of advertising.
Good interview I enjoyed it a lot. The first thing i want to point out is that Mel has done a hell of a job running this company, from pretty much nothing to what it is now!! In the past the company had done little or no marketing at all, now they advertise all over the place. Mel’s main objective is to get the company known and spread the word about content, that is what he is doing in the interview. He does not need to state anything about a R/S because that is not his objective. He is just stating the facts that are known which I think is a good thing. If he continues to do so, more people will subscribe to the service and make this company profitable. As more subscribers come to the company hopefully the stock price will adjust above the 1 dollar mark before the company has to do a R/S.