Sirius XM (NASDAQ:SIRI) announced today that Jim Meyer will take on the role as Interim CEO of the satellite radio provider. Meyer has been with the company as President of Sales and Operations since 2004. The Interim CEO appointment is effective immediately, and as part of that appointment existing CEO Mel Karmazin has stepped down and resigned his position on the Board of Directors.
"I'm honored to lead Sirius XM during this important time for our Company," said Mr. Meyer. "Sirius XM is a great business and I look forward to working with our talented management team to continue to deliver the best content and service to our subscribers, while enhancing value to our shareholders."
While there is no indication that the move is permanent, it very well may be. The company still has an executive search team headed by Liberty Media's (NASDAQ:LMCA) Greg Maffei searching to fill the role in a permanent fashion.
Liberty Media is in the process of gaining control of Sirius XM, and already has just under 50% of the company stock under control. For Sirius XM this is a positive development in that Meyer has been a part of the management team that has guided the company to success over the past few years. There is a maintained continuity in having an internal candidate take the helm, even if on an interim basis.
Sirius XM is has made an impressive run in 2012 and 2013 is shaping up to be on par with or better than the past year in terms of company performance. With a new CEO at the helm we may begin to see some guidance regarding 2013 from the company.
This announcement should be perceived as a subtle positive for investors. Meyer is very talented, but his appointment is not the type of news that sees the stock jump 10% in a day. Instead, it helps remove a level of uncertainty with a more predictable management style than bringing in an outside force. Sirius XM will likely see some changes, but the overall concept of company management will more likely than not remain on track.
Disclosure: I am long SIRI, LMCA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.