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Sirius shares rebound
Karmazin's purchase of 1 million shares in the satellite radio company sends stock back up after it dropped 6 percent yesterday.
Shares in Sirius Satellite Radio rebounded slightly today after dropping 6 percent yesterday when the company gave Howard Stern--the shock jock whose arrival has been a boon to Sirius--permission to sell $200 million worth of stock in the company.
The stock bounced back today on the news that Sirius CEO Mel Karmazin bought 1 million shares of the company. Karmazin, former chief operating officer at Viacom Inc., paid $6.21 per share, a total of approximately $6.2 million.
The move did not fully recover the stock from yesterday's dip, rebounding 1.3 percent on the day to close at $6.20 on the Nasdaq.
Because the company met subscription targets in advance of Stern's much-hyped shift from terrestrial radio to Sirius, Sirius granted Stern and his agent Don Buchwald 34.4 million shares in the company. In a regulatory filing late yesterday, the company gave the pair permission to reap the proceeds of selling that stock.
In 2004, Stern signed a five-year deal with Sirius worth $500 million.
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