Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

Recs

1

Sirius XM Is Headless for Halloween

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Mel Karmazin is moving on. Sirius XM Radio's (Nasdaq: SIRI  ) iconic CEO will leave the satellite-radio provider come February.

This may not come as much of a surprise to those who watched Karmazin and Liberty Media (Nasdaq: LMCA  ) CEO Greg Maffei spar verbally last month, but it's a significant development nonetheless.

Karmazin was the master architect of the merger between Sirius and XM that created a monopoly in satellite radio. He's been a beast in milking synergies and squeezing costs, transforming Sirius XM into a consistently profitable juggernaut. Sirius XM's stock did decline during Karmazin's overall tenure, but it's still been one of the market's biggest winners since bottoming out three years ago.

A few years ago, skeptics argued that satellite radio was a transitory technology. The success of Pandora (NYSE: P  ) and Spotify would crush Sirius XM as smartphone adoption rates grow, giving drivers more options beyond terrestrial and satellite radio. Well, Internet radio continues to grow in popularity, yet Sirius XM keeps hitting new subscriber milestones.

"Who will be Sirius XM's CEO come 2013?" That was the first of four questions I asked last week. Karmazin will be missed, but he is certainly leaving whoever steps up in a great position to succeed. At least now Sirius XM can go ahead and succumb to Liberty Media's move to take majority control of the company and spend the next few months picking out Sirius XM's new chieftain.

Running of the bulls
I recently put out a premium report on Sirius XM Radio, detailing the challenges and opportunities that await investors that are both long and short the dynamic media giant. A year of updates is also included with the report. Check it out now.

Longtime Fool contributor Rick Aristotle Munarriz owns shares of Liberty Media. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (3) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 24, 2012, at 3:01 AM, DR1P wrote:

    Rick,

    Yes, it makes for a humorous headline... but as your first paragraph states, Sirius will not be "headless" until three months after Halloween.

  • Report this Comment On October 24, 2012, at 4:14 PM, jimmy4040 wrote:

    test

  • Report this Comment On October 24, 2012, at 4:16 PM, jimmy4040 wrote:

    There won't be a CEO except on an interim basis because it won't be an independent company this time next year. It makes a ton more sense for them to be folded into Liberty than to remain stand alone.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2071945, ~/Articles/ArticleHandler.aspx, 8/28/2015 11:23:50 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rick Munarriz
TMFBreakerRick

Rick has been writing for Motley Fool since 1995 where he's a Consumer and Tech Stocks Specialist. Yes, that's a long time. He's been an analyst for Motley Fool Rule Breakers and a portfolio lead analyst for Motley Fool Supernova since each newsletter service's inception. He earned his BBA and MBA from the University of Miami, and he now lives a block from his alma mater.

Today's Market

updated Moments ago Sponsored by:
DOW 16,603.76 -51.01 -0.31%
S&P 500 1,986.31 -1.35 -0.07%
NASD 4,811.99 -0.72 -0.01%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 11:08 AM
SIRI $3.85 Up +0.06 +1.45%
Sirius XM Radio CAPS Rating: ***
STRZA $37.59 Up +0.16 +0.43%
Starz CAPS Rating: ****
P $17.92 Up +0.43 +2.46%
Pandora Media CAPS Rating: *

Advertisement