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Nov. 18, 2004, 7:07 p.m. EST

Mel Karmazin named Sirius CEO

Former Viacom president to head satellite radio network

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By Heather Wilson, CBS MarketWatch.com

SAN FRANCISCO (CBS.MW) -- Sirius Satellite Radio on Thursday said former Viacom head Mel Karmazin is following shock jock Howard Stern to the satellite network.

Karmazin, who stepped down as Viacom's /zigman2/quotes/206819775/composite VIA -2.93% president and COO in June, will be CEO at Sirius.

Stern announced earlier this year that he would leave Viacom's Infinity Radio with his contract expires in 2006 to join Sirius /zigman2/quotes/201205073/composite SIRI -0.64% for a five-year, $500 million deal. He said he was leaving in part to avoid the regulated commercial airwaves after several run-ins with the Federal Communications Commission over his language and content.

On Thursday, Stern was promoting his new role by handing out free satellite radio receivers at a New York rally. Watch the video.

Karmazin succeeds Joseph Clayton in the post. Clayton will remain chairman of the board.

"Mel Karmazin is one of the strongest executives in the broadcast world today," said Ken Marlin, head of the media investment banking boutique of Marlin & Co. in New York. "He understands the complexities of the media business and the Sirius satellite radio world. We think satellite radio is going to come on strong, much as television evolved away from the broadcast world to cable and satellite."

Shares of Sirius rose 21 percent, or 97 cents, to $5.69 in the evening session after closing down 23 cents, or 5 percent, at $4.72.

/zigman2/quotes/206819775/composite
US : U.S.: Nasdaq
$ 11.61
-0.35 -2.93%
Volume: 75,994
Nov. 26, 2021 1:00p
P/E Ratio
13.08
Dividend Yield
6.24%
Market Cap
$413.00 million
Rev. per Employee
$3.49M
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/zigman2/quotes/201205073/composite
US : U.S.: Nasdaq
$ 6.17
-0.04 -0.64%
Volume: 11.99M
Nov. 26, 2021 1:00p
P/E Ratio
77.42
Dividend Yield
1.42%
Market Cap
$24.68 billion
Rev. per Employee
$1.40M
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Heather Wilson is a reporter for CBS MarketWatch in San Francisco.

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