Sirius-XM: “Looking to buy”
September 19, 2011
US pay-radio broadcaster Sirius-XM is in great shape and in formal guidance is predicting a double-digit revenue increase for 2012. CEO Mel Karmazin told a Bank of America conference last week that he’d like to use Sirius’s growing cash pile to help fund a suitable acquisition – but there wasn’t much about! Instead, his Board might approve a share purchase buy back.
Meanwhile, the broadcaster is going ahead with a price rise, $12.95 to $14.49 per month at the beginning of next year. Karmazin said the move was simply asking subscribers to pay a nickel more per day, which he said was still a great value for all the programming listeners can access.
It would mark the first price increase Sirius will initiate on the basic service packages since the company added the NFL, Howard Stern, Martha Stewart and other programming to its lineup, Karmazin said, and will help fuel new radio technology and content.