Karmazin Dreams: Sirius Boss 100% Wrong All The Way Down

Sirius XM (SIRI) investors bailed on the stock today, sending shares down 52% to 5.5 cents, as the debt-laden satellite radio company reportedly considers bankruptcy (or a last minute bailout from EchoStar mogul Charlie Ergen).

But things weren’t always so grim!

Recall Sirius boss Mel Karmazin’s words last December:

“We are still engaged (in refinancing talks). Nothing has changed,” he said at a Reuters conference. “We’re still optimistic we’re going to get that piece done.” And: “You should assume the company is not for sale.”

And last October:

“I believe we’ll be able to refinance it, even in this market,” he told a Dow Jones conference. “I am confident that we will get that done.”

And last September, when he joked about lending the company $300 million when its debt came due in February (now):

there has been “a tremendous overselling of the stock” and that his company “is heading toward making a bunch of money in the future.”

And last August:

“The tough part is over,” referring to his merger with XM.

And last August, again:

When he bought 2 million shares of stock.

And last July:

Faber: The stock price is very low.
Karmazin: It sucks.
Faber: It’s a very low price. Forget market cap. Are you going to do a reverse split? It’s embarrassing to look at something that has a one in front of it.
Karmazin: Well, it’s embarrassing, and I hope that we’re not going to have to look at something with a one in front of it for a long time. [He didn’t.  The “one” soon disappeared forever]

We wish the best to Sirius XM and its shareholders. But this one doesn’t look good — even if Sirius does make it out of the firing range.

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.

Tagged In

media sai-us