Sirius XM Radio Inc(NASDAQ:SIRI)’s chief executive Mel Karmazin's instincts proved to be right. Liberty Media Corp (Capital)(NASDAQ:LMCA) that it seeking to gain control of Sirius plans to replace him.
Liberty Media's CEO Greg Maffei on Friday laid speculation to rest saying that Karmazin could be replaced at Sirius. He was speaking at a conference organised by Goldman Sachs.
Karmazin has said on September 12 that his instincts told him that he would not be allowed to continue at the helm of affairs at the satellite radio provider. Karmazin's contract ends on December 31, this year.
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Liberty which has been raising its stake in Sirius via market purchases now holds around 49.6 percent in the company. A holding of 50 percent will enable it to take management control.
The company has already told the Federal Communications Commission that it intends to take control of the company that it saved from bankruptcy by advancing it debt in lieu of a 40 percent stake.
After about a decade of being in the doldrums Sirius has become resurgent. Shares in the company have risen about 37 percent so far this year.
Shares in the company rose 3.2 percent to $2.57 while Liberty rose 1.7 percent to $104.14.
Meanwhile shares in Green Mountain Coffee Roasters Inc.(NASDAQ:GMCR) fell 9.6 percent after rival Starbucks announced its plans to sell single-serve coffee machines that will allow customers to brew their own lattes.
Green Mountain had earlier released a latte maker, but that cannot compare with what Starbucks has to offer. Later this year Green Mountain plans to offer a one-cup espresso machine.
Green Mountain closed at $27.94. Its shares have fallen about 38 percent so far this year.