Howard Stern Inks 5 Year Deal With Sirius XM
The news everyone has been waiting has finally been announced. Howard Stern has signed a new 5 year deal with Sirius XM that will keep him on the satellite radio providers service through 2015. The news brought the stock price of SIRI up by nearly 10% early trading.
Stern’s announcement came with only a week of live shows left on the contract. Exact terms of the deal have not been announced, but certainly fans, subscribers and investors have reason to celebrate. There had been some speculation that Stern would not remain on satellite radio. Among the worst of the rumors transpired last week centering on a rumored Apple deal worth $600 million for three years. That rumor originated from a Twitter feed, and surprisingly some media outlets picked up on it as truth and even began speculation on the subject.
For Sirius XM this deal represents yet another unique piece of content that helps differentiate satellite radio from competitors. SiriusBuzz will update readers when more information becomes available.
Position – Long Sirius XM Radio
Good for Sirius. Honestly I was very surprised.
In a statement this morning the company said Stern’s new contract will run through December 31, 2015. “Under the terms of the new contract, SIRIUS XM will now have the right to transmit Howard’s exclusive programming to mobile devices. Additional terms of the contract will not be disclosed,” the statement said.
Through the agreement, Sirius gains the right to transmit Stern’s programming to mobile devices.
“I am especially excited that my show will now be heard through Sirius XM on mobile devices,” Stern said. “Access to my show on mobile devices will open up additional opportunities for my fans to hear me wherever they are.”
Management is confident that keeping Stern on will benefit the company in a variety of ways.
“Our agreement is good news on all fronts — it is good for Sirius XM subscribers and good for Sirius XM stockholders,” said CEO Mel Karmazin. “Howard forever changed radio and was instrumental in putting Sirius on the map when he first launched on satellite radio. He is one of the few one-name entertainers in the country and our 20 million subscribers are lucky to have him.”
“Crockett estimates that Stern will get $80 million a year in cash, the same amount he makes now, but not the $100 million in stock over five years that he had previously received.”
Stern, 56, first revealed the news on his early morning show, known for its uncensored content.
“It all worked out, very, very well,” Stern told listeners. “I got five f—ing more years of this.”
Stern’s new deal, which will run through December 2015, allows for Sirius to transmit Stern’s programming on mobile devices, the company said in a statement. Neither Sirius nor Stern disclosed financial terms of his new contract. Don Buchwald, Stern’s agent, didn’t immediately return telephone and e-mail messages.
All I’ve got to say is Mel K. John M. Mel K. John M. Mel K. These guys are powerhouses!!!! Looks like the darling of wall street is back and bigger and better than before!!! Notice how I said darling and not darlings. This company has me on a new popcorn diet!!!
We do not know how much he is paid until than the stock will not move much higher, anything over $500 Million is very bad for SIRI and anything less is very good. We also need to know how much are they paying the NFL and other radio personalities
Does this mean that Stern will be available on BOTH Sirius and XM at no additional cost beyond the basic package price?
Now that the Howard and NFL contracts are done deals, SXM should be able to provide 2011 guidance. Hopefully this will come out in the near future. IMPO this is what is needed to move the PPS.
both Howard getting added to Apps and NFL games on the internet next year are both great strides along with better financial terns for the company.
XMAS came early
All these new contracts will include mobile rights because the dash and devices are turning into a app world. Apps are the future and we have the app content then game over in car,home or pocket very smart contract agreement. Imagine all sports on one app instead of jumping around.
What are the chances of Sirius being able to have exclusive rights to air Howard’s content after he finally does retire? He’ll have a library that will include decades and tens of thousands of hours of entertaining programs that can be replayed and enjoyed by listeners and future generation Stern fans. Much like Andy Griffith or Seinfeld episodes, Stern’s channel could be entertaining for decades to come.