On the day of Howard Sterns one year anniversary, SIRIUS announced that it exceeded pre-Howard Stern subscriber estimates for the year ended 2006 by over two million subscribers. Based on the year end subscriber count on December 31, 2006 Sirius gave 22 million shares of common stock, valued at approximately $82.9 million to Stern. As if Howard’s contract wasn’t enough he now has a nice little bonus to further fatten is ever bulging wallet.
Mel Karmazin said today that “we are very pleased that our investment has dramatically paid off.” Sirius is now generating over $300 million more revenue than Wall Street expected at the time Howard agreed to join them. Is Howard still a flop as people like to point out? If so how would you explain these numbers? Is the successful Mel Karmazin losing his mind? Or maybe, just maybe, Howard is still an amazing force that will be driving the Sirius train right past XM in 2007.