Sirius XM and Howard Stern on Thursday morning didn't detail financial terms of their new five year relationship, but at least one analyst estimates it is worth $400 million over the term of the contract, compared to $500 million for his previous five-year contract.
Lazard Capital Markets analyst Barton Crockett in a first reaction estimated that the deal is likely consistent with his expectations and consistent with the cash payments Stern has received in his first Sirius deal, but the shock jockey likely loses the stock portion of his compensation.
Wall Street analysts wondered though if Stern may work only three instead of four days a week given that he had expressed an interest in scaling back his time commitment.
earlier story....
Howard Stern has signed another five-year contract with SiriusXM Radio, putting to rest speculation that he might leave and sending the stock on a double-digit surge.
"If we're going to stay in radio, we should stay here," Stern told listeners and his staff Thursday morning. "We're in an incredible position and suddenly there's real growth. It's a real business."
Stern rocked the radio world in 2005 when he started at Sirius backed with a $500 million contract. His renewal announcement came with just a handful of regular shows left in his current deal.
According to Richard Huff at nydailynews.com, Stern declined to discuss his salary, though he said earlier this week he wouldn't take a pay cut.
The announcement ended months of speculation and hand wringing over his future and the future of Sirius. Five years ago, his move to Sirius led to millions of new subscribers for the company, many of which followed from terrestrial radio. At the time, Sirius had just 600,000 listeners. Now, through his arrival and a merger with competitor XM Radio, along with additional marketing and business deals, the company reaches as many as 20 million people.
"Deep down in my heart I knew I wanted to stay here," Stern told listeners.
Stern said he'd considered other offers along the way, but ultimately decided Sirius was the way to go. He reiterated that he thought terrestrial radio was dead.
He said he hoped all of his staff, who all negotiate separate deals, would stay with him.
He did say there would be some changes to his workload, but said those deals are still being worked out.
Howard Stern responded earlier this week to a report that Sirius XM CFO David Frear said Stern would need to take a pay cut if he re-ups with the company with an on-air rant in which he declared, "I am not taking a f***ing pay cut" and demanded to know, "Who is this guy to say this in public?"
According to radioink.com, on Wednesday morning's show, Stern said he'd looked into the matter further and found that Frear didn't say that Stern needed to accept a smaller check, but commented more generally that Sirius XM has been able to renew talent for less because there are no longer two satellite radio companies competing for content.
Stern reportedly apologized to Frear on the show and said, "David Frear is OK with me."
Also read here:
Sirius XM Stock Jumps (Forbes)
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