• by David Kaplan , November 18, 2004

Hours after his close associate Howard Stern addressed a teeming crowd about the benefits of Sirius Satellite Radio, former Viacom Chief Operating Officer and President Mel Karmazin announced that he has signed onto the fledgling company as CEO.

Karmazin, who left Viacom last May, has long been seen as a champion of Stern. Sirius signed a five-year, $500-million deal with the radio personality this past summer.

On Thursday, Stern handed out free radios and vouchers to about 4,000 fans in Union Square Park. However, in order to receive Sirius's broadcasts, the fans who received the gift would have to pay the $142.45 annual service fee by November 24, 2004. Stern's contract with Viacom's Infinity Radio doesn't end until the end of Dec. 2005.

Karmazin, who will begin his new post after the new year, succeeds Joseph Clayton, who will remain at Sirius as chairman of the board of directors.

Clayton said: "The hiring of Mel Karmazin is the final piece in the turnaround of Sirius that began when I joined the company three years ago. My contract was ending on December 31, and I advised the board of directors that I was willing to stay on for a transitional period. When Mel left Viacom, we all felt we had a unique opportunity."