MEL KARMAZIN: Sayonara, SiriusXM. (Bloomberg)
Mel Karmazin is stepping down as chief of Sirius XM, ending a months-long battle with media mogul John Malone for control of the satellite-radio broadcaster.
His departure Feb. 1, after his contract expires, clears the way for Malone’s Liberty Media, the biggest shareholder, to complete its creeping takeover of the company.
Liberty, which owns 49.6 percent of the stock, has asked the Federal Communications Commission for approval to assume control of Sirius.
Karmazin — who famously clashed with Viacom Chairman Sumner Redstone as his No. 2 — has made it clear that he wouldn’t stick around if that happened.
“It’s not a huge shock,” said Barclays Capital analyst James Ratcliffe, “Clearly the relationship with Liberty hasn’t been the easiest.”
Karmazin suggested compensation was a sticking point in April, when he told Forbes, “I think I’m one of the most underpaid executives in the history of executive payment.”
Malone fired back a few months later, telling reporters, “He tells the public he’s underpaid? It’s a joke.”
Karmazin, 69, isn’t leaving empty-handed after pocketing nearly $209 million from stock sales this year, according to data from SECForm4.com.
Liberty got most of its stake through a $530 million loan that saved Sirius from bankruptcy in 2009.
While Liberty is awaiting FCC approval, CEO Greg Maffei will head the search for Karmazin’s successor.
Sirius, which fell 1.37 percent to close at $2.87, fell another 1.4 percent in after-hours trading on the news.
“Near term, it’s modestly negative for the stock; long term, it’s pretty neutral,” Barclay’s Ratcliffe said.
Karmazin exits on a high. Sirius ended the most recent quarter with a record 23.4 million subscribers. It also raised its guidance for net subscriber additions to 1.8 million for the full year, up from 1.6 million. Sirius will report third-quarter results Oct. 30.
“It is my great privilege to be a part of Sirius XM,” Karmazin said in a note to employees. “The last eight years have been an amazing ride.”