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.
Will SIRI Hit
$5 This Year? Find Out Here
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.
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