On July 29, 2008 a genius idea was accomplished for two large radio companies, or so it seemed. SIRIUS Satellite Radio and XM Satellite radio merged into the second largest radio company in the country with over 18.5 million subscribers. Mel Karmazin, CEO of the newly emerged radio company, now called SIRIUS XM Radio, was pleased to announce its success. “Every one of our constituencies is a winner. Combined, SIRIUS XM Radio will deliver superior value to our shareholders. By offering more compelling packages and the best content in audio entertainment, we are well positioned for increased subscriber growth.” The united station guaranteed over 300 channels of programming and talk show packets including Howard Stern, Oprah, and Martha Stewart. Karmazin also revealed that the company’s stockholders would receive 4.6 shares of SIRUIS’s common stock for each share of XM. What a wonderful idea right? Wrong…well at least in the eyes of Karmazin.
On the flip side, Karmazin broke down to reporters in October 2010, admitting that his genius idea was a lot harder to handle than he had thought. Although the stations successfully merged into one large company, the cultural differences caused difficulties and altercations, and the staff size became too large to manage. Eventually, Karmazin had to cut down the staff, dismissing about 500 employees. “Not because they weren't good, but because we didn't need them,” stated Karmazin. He went through a long and though process interviewing his internal staff, and choosing the best candidates for the company. Although SIRIUS XM Radio is known as “The Best Radio on Radio,” and for having exclusive content relationships with renowned artists and personalities, Karmazin confirmed that there is nothing sexy about production behind the scenes.
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