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Sirius Again Talks Of Merger

1/12/2007 08:03:00 AM Eastern

Las Vegas — Sirius Satellite Radio, as XM did earlier this week, stated that it was open to a merger between the two satellite radio rivals if the deal would benefit shareholders.

“I think consolidation creates value. That’s the kind of thing a CEO should be looking at,” said CEO Mel Karmazin.

Speaking at a Citigroup analyst conference, which coincided with International CES, Karmazin also responded to questions about Howard Stern’s high compensation by stating that although he wasn’t with the company when the deal was done, he would have made the same deal with Stern. “When it comes to radio, there is no better content than Howard Stern,” he added.

Karmazin estimated that the portable segment of satellite radio for products such as the Stiletto is about 15 to 20 percent of the market.

In other statements he said that he expects negotiations with the record companies on royalties should be resolved by the end of this year.

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