Karmazin to step down from Sirius-XM
October 24, 2012
Pay-radio service Sirius-XM Radio has announced that CEO Mel Karmazin will be leaving the company on February 1, 2013, following the expiration of his current employment agreement and after a transition period. Karmazin will also leave the Board of Directors at that time. The move comes as John Malone’s Liberty Media is looking to take control of the company. It currently holds just under 50 per cent of its shares and has informed the Federal Communications Commission that it intends to take control of the company.
Karmazin described Sirius-XM as “an extraordinary company with an incredible team” which had never been better positioned than it is today. “We continue to grow our subscriber base to record levels and our financial position has never been stronger. Importantly, the commitment to delivering innovative new products and technologies is very strong. Sirius-XM has a strong foundation to build on for the future and there is a great team in place to keep the company moving forward. I am confident that Sirius-XM’s best years are ahead,” he said.
Eddy Hartenstein, Chairman of the Board of Directors of Sirius-XM, said its record-breaking financial results were a testament to Karmazin’s leadership and strategic planning.
“We appreciate the tremendous job Mel has done for the Company in overseeing the merger and delivering outstanding operating performance. While we understand, we regret Mel’s decision to pursue other interests and are grateful for his willingness to oversee a smooth and orderly transition,” said Malone.
The Sirius-XM Board of Directors has formed a search committee, chaired by Greg Maffei and including James Mooney and Eddy Hartenstein, to consider both internal and external candidates for the Company’s next Chief Executive Officer.