SiriusXM CEO Karmazin to step down
SiriusXM, which has equipped 50 million cars and light trucks with satellite radio service, said CEO Mel Karmazin is stepping down on February 1.
The SiriusXM board of directors has formed a search committee to consider both internal and external candidates for Karmazin's replacement, the company said Tuesday.
Karmazin's plans come as Liberty Media has been steadily raising its stake to gain control of the company.
Liberty holds just under 50 percent of SiriusXM's shares and had previously informed the Federal Communications Commission that it intends to take control of the satellite-radio company, putting Karmazin's future role in question.
Liberty Media CEO Greg Maffei, who sits on SiriusXM's board, said last month Karmazin wasn't "irreplaceable."
Karmazin took over at New York-based Sirius in 2004.
Four years later, he presided over Sirius' merger with XM Satellite Radio, combining the two pay-radio providers.
Sirius XM reported a 14 percent increase in subscribers in the second quarter, attributing the growth to higher new-vehicle sales.
The company recently surpassed 50 million factory vehicle installations of its satellite radios, and the company expects to top 100 million installations by 2018.
SiriusXM added about 622,000 subscribers during the second quarter, raising its total to a record 22.9 million active subscribers.
About two-thirds of new vehicles sold in the United States today come with satellite radio and a trial subscription to SiriusXM as part of long-term agreements with automakers.
Bloomberg contributed to this report
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