Sirius XM Radio chief executive Mel Karmazin will step down in February, a move that comes at a time when media mogul John Malone’s Liberty Media is trying to wrest full control of the satellite radio broadcaster.
Douglas County-based Liberty, Sirius’ largest shareholder with a stake of just under 50 percent, has been trying for months to wrest control of Sirius and has filed a petition with U.S. regulators to replace the company’s board.
Liberty has argued that Sirius should be more aggressive about pursuing better technology and expanding internationally.
Karmazin, who famously clashed with Sumner Redstone while at Viacom, is known for his disdain of working for a controlling shareholder, and he has indicated that Liberty probably wouldn’t need him to stick around if it took control.
Karmazin, who has been at the helm of Sirius for eight years, will step down Feb. 1, after the expiry of his employment agreement.
“This is not overly surprising as Karmazin’s public musings about the possibility of leaving as Liberty takes over have left most institutional investors we speak to expecting a departure,” Lazard Capital Markets analyst Barton Crockett wrote in a note.
Under Karmazin, Sirius has grown its subscriber count to 23.4 million and maintains an estimated 70 percent market share of pre-installed satellite radio in new cars sold in the United States.
“We will keep our foot on the gas and continue driving ahead to finish 2012 and lay the groundwork for 2013 and beyond,” Karmazin wrote in an e-mail to employees. “I’m looking forward to seeing — and listening to — all that is ahead for SiriusXM in the years to come.”
