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Putting Rumors to Rest, Howard Stern Renews His Sirius XM Contract

 

15 December, 201015 December, 2010 0 Comments Business Business

 

Howard Stern is staying on satellite radio for another five years. After months of public speculation about whether he would leave Sirius XM Radio, his home for the last five years, Mr. Stern announced on his show on Thursday morning that he had renewed his deal with the company, keeping him on satellite radio until the end of 2015. “I kept thinking I’d like to stay here,” Mr. Stern, 56, said on his show, “because more than anything, I think what we’ve built here hasn’t been finished yet true religion outlet.” Financial terms were not disclosed. But despite Mr. Stern’s recent comments that he would not accept a pay cut, one analyst estimated that his new deal might be worth slightly less than his current one. The contract expires at the end of the month and paid him $100 million a year in cash and stock true religion jeans. Barton Crockett, a media analyst at Lazard Capital Markets in New York, said he believed that Mr. Stern’s new contract would be for $80 million a year in cash, with no stock, for a total of $400 million. Mr. Stern said he would have more flexibility with the show’s schedule, which now runs four mornings a week, but he did not elaborate true religion sale. In a statement, Sirius said the company would gain the right to transmit programming from Mr. Stern’s two channels — featuring the daily show as well as content from his various sidekicks — to mobile devices. Over the last few months various exit situations for Mr. Stern have been imagined by bloggers, the news media and anonymous Twitter users, discount true religion jeans including a possible outlet on Apple’s iTunes service. Analysts greeted the deal as a vote of confidence for the future of satellite radio as well as for Sirius XM, which has rebounded after nearly going bankrupt in 2009, the year after Sirius merged with its main competitor, XM. When Mr. Stern signed with Sirius in 2004, it had 600,000 subscribers. true religion jeans on sale The combined service now has 20 million, although Sirius has not said how many of them listen to Mr. Stern’s show. “It removes uncertainty for Sirius, it maintains continuity, and in terms of the competitive landscape it removes the overhang of Howard going to iTunes,” said Bishop Cheen, an analyst at Wachovia Capital Markets in Charlotte, N.C. “It keeps the horse race focused on terrestrial radio and how it will maintain its share versus satellite.” Trading in Sirius shares rose on the news, which came hours before the markets opened. The shares rose 7 cents to close at $1.39.
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