Surprise, Liberty May Not Spin Off SiriusXM ... No Surprise, Mel Karmazin May Not Stay
September 13, 2012 at 3:56 AM (PT)
Just last week (NET NEWS 9/7), LIBERTY MEDIA CORP. continues to snap up SIRIUSXM stock, looking to acquire the 50+% controlling interest Chairman JOHN MALONE seeks. LIBERTY purchased a total of 5,536,346 shares this week, with a SEPTEMBER 4th buy of 4,642,375 shares, and a SEPTEMBER 5th buy of 893,971 shares of Class A stock.
Now come reports that LIBERTY may not plan to spin off the satcaster when it gains control of the company.
"We are in no rush to get out of the SIRIUS stake," LIBERTY MEDIA CEO GREG MAFFEI said at the BANK OF AMERICA MERRILL LYNCH Media, Communications & Entertainment Conference in BEVERLY HILLS, CA REUTERS reports, "he said that SIRIUSXM, which has more than 22.9 million subscribers, could one day make up the core of LIBERTY."
"At some point (a spin-off) may become logical but I don't see that as something we need to get done in the near term," said MAFFEI.
Meanwhile, current SIRIUSXM CEO MEL KARMAZIN, who was speaking at the same conference, told the audience that he may leave the company when his contract expires on DECEMBER 31st.
"I am certainly open to having a conversation but certainly my instincts today are that LIBERTY does not need me at the company," said KARMAZIN. REUTERS reports "he added that he would be more interested in staying if LIBERTY spins off SIRIUSXM to public shareholders and does not remain the controlling shareholder of the satellite radio company."