Mel Karmazin on M&A experience

About Mel Karmazin

Mel Karmazin, the former CEO of Sirius XM and CBS, has discussed the 2008 merger of Sirius and XM Satellite Radio in multiple interviews, describing the regulatory process as excessively lengthy and politically motivated. He stated that the merger took 17 to 18 months to gain approval from the Federal Communications Commission (FCC), a delay he called "a sin" and "dreadful," adding that there was "no reason that this merger should not have been allowed to take place." Karmazin said the vote was 3 to 2 along party lines, with the three Republican commissioners approving and the two Democrats opposing, and he characterized the Democrats' push for price freezes and regulation as "communism." He noted that the company voluntarily committed not to raise prices and instead offered a $6.99 a la carte package, which he described as a 46 percent reduction from the existing $12.95 rate. Karmazin has also reflected on the financial challenges of closing the deal, saying the company needed to raise $1.25 billion in a difficult market and that he did not finalize the merger until the funds were secured. He described the merger as "the hardest thing I've ever done in my career" and stated that the combined company became the second-largest radio company in the world, with $2.2 billion in revenue and over 18 million subscribers. He attributed the opposition from the National Association of Broadcasters to their desire to protect terrestrial radio from competition, and he noted that a senator privately asked him to apply broadcast indecency rules to satellite radio in exchange for support, a request he rejected on the grounds that satellite is a paid subscription service.

Profile compiled from Mel Karmazin's verified public interviews and appearances. See all quotes & transcripts →