Fox News Exclusive

" We'll GM's results are improving all that government -- certainly helping and that is not exactly -- the satellite radio business work ourselves generally mean. More radio cells but Sirius XM radio not looking for ballot -- using. You'd stars like Howard and Oprah on now -- to stand out and it. I'm trying to get those cells to break out."

" No Karmazin here and we hear no good to see -- on. Things are picking up and when you heard the news and GM that look where we're doing better which -- to pick up in fact we're gonna repay our loans a lot of earlier which --"

" those -- surprises there you know I think that we were anticipating next -- that car sales will be between eleven and twelve. Million cars and that's sort of what Fritz said today. So Henderson of -- yes -- channel 12% pick up to what it we'll just really good you know because our business model works you know real well I mean we'd like sixteen million subscribers as compared of course sold as compared to eleven to twelve. But our model works really well since the merger with 1112 -- still contingent on Parcells is you know I -- a large -- yet it's it's not about so -- Partially yes -- because so many people listen to the radio you know when they're out of home and they're in -- vehicle so suddenly 5% of people are spending their time. Listening to radio in the clock so it's really neat. When cars -- sold with an AM button and an FM button and Sirius XM button. But we're not really about. Adding subscribers that's -- the critical nature of course we want -- more subscribers the question was always about will the business model work and since the merger happened we were able to dramatically. Improve the business model -- we have the swing of about. You know almost billion dollars from before the merger -- after the merger you know and so far is our cost structure so."

" Yes the cost structure is still a problem -- and I never know what numbers racket on Howard Stern whether it's a hundred million dollars a year or whatever it is a lot of money and that. He just doesn't make sense."

" So I will tell you this mail in our most recent quarter and in the guidance that we've given for this year and in the guidance that we've given for next year. We're going to have after paying. These very substantial salaries after paying expensive interest expense. We're going to generate. Free cash flow and and matter of fact in 2010. Are free cash flow is gonna grow. And my metric that I care about you know more importantly -- subscribers more importantly than revenue. Is free cash flow because I've always believed that free cash flow creates wealth. And it's free cash flow that enables you to make acquisitions by back your stock pay down debt. And we are generating in spite of the cost you know a lot of free cash flow if you could convince Howard. To work for less money you know I'd be happy to but I've been hearing about expense of content cost my whole career whether he'd be. NFL whether -- the NCAA tournament whether he David Letterman whether -- gone on in this whether or not it be Howard Stern. You know good content cost you a lot of money and as I've said before I'd much rather have that good content. Then not have it and if we have to work harder to generate more subscribers and more free cash flow to pay for were prepared to do it."

" I just so we now I wanna go on record as on the jets to trying to cut back talent and is now you're kidding. Com. I ask you about other the rumors in the industry the whole Comcast's. It -- NBC's in which could go down that. If if it -- to go down. If it were to happen your name keeps coming up as among the small pool of executives who would be perfect run it."

" They would be no question that I would be perfect to run -- there is no chance that I will ever. Take another job outside of serious sex -- just renew my contract it's exactly what I want. You know I I believe."

" Why do you feel them well because you don't wanna be a number two running a number two to Brian Roberts horrible enough that that would have to -- possible -- But but the scenario is -- never -- he would never be -- but I wouldn't be number two the Warren Buffett. And I'm just not good at it and I'm just not good at being the number two so they ask you -- of course I know -- ridiculously wealthy. But but if it -- then you're the guy. Gazillion dollar legitimate and make it happen you're saying that. I'm a big fan of Pete Peterson. Blackstone Group -- sore from that breakfast -- we feel he's given away over a billion dollars he came to the conclusion he had enough. Okay the -- you have enough you don't need more for me I came to that conclusion ten years ago you want this to be your last I mean."

" Certainly nobody that's in this -- headaches that. No I'm not not a hero don't make it in the middle it's gonna put everything at the -- had HD radio and always other unforced seemed to know exactly why I wasn't."

" Came -- came to this company. That really did not have a business model that worked. I wanted to do the merger I didn't wanna deal with the liquidity thing I had no idea about Lehman Brothers and stuff like that so that part of it was certainly not anticipated. But I came just a business as far more entrepreneurial that's a growth business that's revolutionizing. Radio I made all of my money. You know or a lot of it in radio I love the radio and this was to me the perfect opportunity. And have no desire is this the last thing I'm gonna do I have no idea. About that but I will tell you what I don't want to do is to run another large media company I've done that. You know then there. I won't play this fact when you are running another large and by the way. You -- all make you of that that I will not run another large media company. -- Think that that."

" Well I have heard I guys com. It -- it -- the environment for satellite radio and and then now you found a lot of different ways to provided to people here not -- contingent for example of civil car. How much of the whole business has changed you don't mean -- all of a sudden we are resolute units he rid of the -- other alternatives out there. I didn't disclose them series sex and use our love it thank you very much thank you -- like -- of -- I didn't for a good six here what we have -- sale you can become electrons in Formula One -- we'll talk about that. But I always tell -- you know -- tried it really is -- day. But don't wanna -- say yeah but I traits to me that's pretty cool yeah but yeah but I'm on the Internet all the stuff that's and I don't live in my car and I don't like these contraptions -- Hooked up to -- that are thirteen bucks a month when it --"

" So -- so I tell them that radio's been around for long time there was -- radio there started in the twenties then it became FM radio. What is different than just recorded music and it's different than just a lot of stuff that you're alluding to. Our revenue. Today apart trailing revenue is about two and a half billion. Dollars there's only one other company that's close to us in revenue and -- slightly ahead of us and that's clear channel. None of these other companies is no radio company there's no revenues and HD radio. You know you've got all of these music services that have revenues of under a hundred million dollars a year. That we have this extraordinary content we have -- 135. Channels in every single market. In the United States from serious and from XM and our content. Is what separates us and it's by the white people -- their car right now listening to Fox News okay come on serious or except. You know that's not just about only music you know and when you add our sports and you add -- content. You know we have lots of competition we told the Department of Justice I mean I think that's the one thing about the merger that you talked about -- NBC you know and Comcast. You know that I would be concerned about. Is we went through seventeen months of being in deal limbo because of the regulatory. Process that Iron Man that's an. Ugly period of time. You know and the got investors leave you and I. And and investors you know not only do investors -- you you know subscribers are concerned about what's gonna happen you know even have to do ala cart are you gonna -- you know what what are you gonna have to do. So I think a huge. Disadvantage to -- was going through. That merger and then the subsequent liquidity that's behind us. So I think to day you know you'll start to see quarter after quarter of growth you'll see us making free cash flow you'll see us with as a -- over to we have billion from revenue. We'll start to make money. And we'll start to keep investing in content and I think our future will be great is there a lot of competition capsule. There's a ton of competition I remember when people said that the cell phone. In the caller was gonna put radio out of business and when the eight track went into the car people sent G. Know what's gonna listen to radio they're going to be listening to the eight track and you know so. You know I think there's a lot of competition but I feel really good about our model."

" Puts a lot of does not -- institute GM Brian and we're just getting word now -- the GMA CC EO is resigning I'm not taste backyard and a half. But it really why is it is it fair to say you're trying to step back that this isn't all Jim content -- this is -- all."

" well we'll show caller we have deals with every single car company. You know every single car manufacture this -- satellite radio when the -- so if next year there are eleven million vehicles sold. In through North America will be in about 60%. Indifferent as to whether it's Ford or Chrysler Toyota I mean you're rooting for all of our partners and -- in every one of we have deals and everybody."

" You've worked with some of those prominent talent in the world right now Oprah rose C Howard do you work with my colleagues and friends Imus. And then you'll love you. And I and I always hear from manages. You know these these town from Madonna they never certainly that would put but I hear that and and how do you manage these gargantuan egos by paying them a lot -- this yeah I got all arrest doesn't."

" I'm very noisy it is -- but he got more ads on the night dating someone from a done and I did and you know."

" It's it's called money. Okay yeah yes they command and they say now I love you -- fourth the FCC for me you know you really supported me you didn't -- meal would -- controversy. And by the way my contract's up can -- get 10% more money."

" But isn't the goal -- for a lot of them I wanna be paid more than this other guy seems to be getting more -- Yeah I mean that's always -- do you -- it is to sit there and I keep telling them that when they are as generating as many subscribers process Howard Stern is I'm willing to pay you that kinda money. But Howard Stern is your top. Howard Stern is the most popular radio personality it's in all of radio today especially today with -- us. And are you for -- and -- he really does assiduously avoid media interviews red carpet type appearances that he keeps it all pretty much on the radio yeah are you okay --"

" I I I love it you know because there's a set I think if anybody wants to hear anything that's going on with Howard Stern naked. -- is only one place to find it and that's on the radio so no I I feel it's really good and Howard. Doesn't like doing things like this course it'll be quick and rushed -- 5 hours every morning on serious sex -- And he could say everything he wants and why should be given to a Fox News Fox News is -- you not paying me for this interview how I think she -- you. Like to me -- I do what Howard thinks I'm crazy yeah. You and I could be doing it with him. President -- I think he's accused of I think he is a great leader I have a lot of respect for him I wish that he focused. On. The job situation I think that the single biggest problem facing people in inflation takes security because that's again the -- to worry about security. Are the jobs. And you wouldn't have known health care thing right now I I I I I feel that we need to do something on health care but I definitely would not be doing it now I do -- Laser like focus. On trying to improve. The job situation that exists today because I think it's really problematic. Yes and real quickly Comcast NG here are gonna come -- on and -- yes okay. Nonpartisan that was that's any good to see her triumphed -- mind. Thank you -- a lot my wife ultra leftists."