Mogul spends $6 mil to buy 1 million shares
A few days after Sirius caught heat for doling out a big stock bonus to Howard Stern, topper Mel Karmazin made a big buy himself.
Karmazin spent more than $6 million to buy 1 million shares in Sirius on Thursday.
Karmazin, who already owned 4.5 million shares, bought the new batch at $6.21 per share. The stock’s price rose 8¢ to close at $6.20 on news of the purchase.
Exec’s goal is likely more long term. After Sirius cleared Stern to sell his payment of $225 million immediately, investors feared a dump, and the stock dropped more than 5% Wednesday. Karmazin’s move is thus seen as a way of reassuring investors of company’s long-term viability.
Wall Streeters said there’s unlikely to be a large Stern sale in any event. And even if Stern were to sell , say, half of his bonus shares, it would still amount to only about 20% of the trading volume Sirius does in a single day.