Mel Karmazin fights to rescue Sirius

Citation

Birger, J. (2009), "Mel Karmazin fights to rescue Sirius", Strategic Direction, Vol. 25 No. 10. https://doi.org/10.1108/sd.2009.05625jad.003

Mel Karmazin fights to rescue Sirius

Article Type: Abstracts From: Strategic Direction, Volume 25, Issue 10

Birger J.Fortune (Switzerland), 30 March 2009, Vol. 159 No. 6, Start page: 67, No. of pages: 4

Purpose – Features an interview with the chief executive of troubled Sirius XM, Mel Karmazin. Design/methodology/approach – Describes how Karmazin has just struck a deal with Liberty Media to keep the satellite-radio company, Sirius XM, afloat. Describes how Karmazin’s tenure at Sirius XM has not been entirely positive; highlights how the stock price has declined disastrously and how the company is having to cope with huge debt repayments. Puts forward how Wall Street has been highly critical of his leadership and records the pessimism expressed by some media experts as to the future of Sirius. Outlines why Karmazin believes that the company is on the verge of doing for radio what satellite TV did for television and why he thinks the company will, eventually, be very profitable. Looks at why Liberty Media has loaned so much money to Sirius; quotes those who consider that Sirius’s business model is outdated and that Karmazin faces a major threat from internet radio; discusses whether their prognosis is correct. Originality/value – Examines whether Sirius has any chance of becoming a going profitable concern.Article type: Case studyISSN: 0738-5587Reference: 38AK080

Keywords: Business performance, Corporate strategy, Leadership, Radio, Sirius