Karmazin: Sirius Positive Cash Flow "Could Happen" By Q4
July 10, 2006 at 6:21 AM (PT)
In an interview with NEWSWEEK, SIRIUS SATELLITE RADIO CEO MEL KARMAZIN says that the company is still poised to generate positive cash flow by 2007 and it "could happen as soon as the fourth quarter this year." KARMAZIN said that the company's stock has taken a hit because WALL STREET is looking to see what the business model for satellite radio is, meaning "it's so important that we generate this free cash flow and that we do generate a billion dollars by 2010. That would clearly say that this is a good business."
KARMAZIN also reiterated that his recent comment musing about the possibility of SIRIUS buying rival XM SATELLITE RADIO isn't likely, noting that "in the case of satellite radio, it's hard to argue that strategically [buying XM] would fit. It's not something we're pursuing." He also took another shot at the NAB's insistence that satellite be regulated for indecency like broadcast radio, saying that "an organization like the NAB should be a proponent of free speech. There's certainly disappointment on my part and I know others who are saying, gee, that's not what the NAB should be doing."
And he added that the VIACOM split into two companies ("new VIACOM" and CBS CORP.) after his departure from the company is "not something I wanted to see happen, since I was the one who put the companies together. It's only been about six months since the split. Do the math and the stock is down significantly from that time."