Sirius' Karmazin Hints At XM Merger Possibility

| About: Sirius XM (SIRI)
This article is now exclusive for PRO subscribers.

The Thing That Wouldn’t Die - rumors of a merger between Sirius Satellite Radio (NASDAQ:SIRI) and XM Satellite Radio (XMSR) - is showing new signs of strenght, thanks to Sirius CEO Mel Karmazin.

Here’s an excerpt from a Smart Money interview with Karmazin that was posted on Friday:

Where are you with a possible merger with XM?

I’m really not allowed to say. I have focused my entire career on shareholder value and wealth creation. Often mergers allow for that. I combined my radio company with CBS, and I combined CBS with Viacom.

What was XM’s reaction to your proposition?

“I’m dreaming” is their quote. But before they said that, both stocks went up. So I guess investors think [a merger] could be interesting.

Have you tried flowers?

I personally believe regulatory agencies are not a problem. If there’s an iPod with terrestrial radio, it’s hard to believe government is worried about two satellite radio companies combining.