Report: Howard Stern Insists There's No New Deal With SiriusXM..Yet

UPDATE: Wednesday 10/7 8:00 AM: Doing his show Wednesday morning, Howard Stern says there's not anything close to a deal to continue with Sirius XM.

Original Posting 10/6...

Howard Stern, who’s maintained his star power in the podcasting era, is nearing a contract renewal with Sirius XM Holdings Inc. that would boost his pay to about $120 million a year, according to Bloomberg citing  people familiar with the matter.

Stern’s contract with Sirius expires at the end of December, and the 66-year-old has been negotiating a fresh deal for the better part of the year, said the people, who asked not to be identified because the conversations are ongoing. His previous five-year contracts, which cover production and staff, topped out at roughly $80 million to $100 million.

Sirius shares climbed as much as 7% to $5.95 in late trading after Bloomberg reported that the agreement was close. They had been down 22% this year through Tuesday’s close.

It's still possible talks will fall apart. Longtime Sirius Chief Executive Officer Jim Meyer, who first lured Stern to Sirius, will be leaving at the end of the year. But keeping Stern has been a major priority for the dominant player in satellite radio. The talk-show host is the company’s biggest star and helped draw millions of listeners to satellite radio when he left his job in terrestrial radio for Sirius in 2005.

Analysts have speculated that Stern could leave Sirius for Spotify Technology SA, which has built a large podcasting operation to complement its online music service. But even though Stern’s team held preliminary conversations with Spotify, they didn’t progress very far, according to people familiar with the talks.

“I can look every investor in the eye and tell them that is a good investment for Sirius XM.”

Stern’s payday speaks to his enduring influence at a time when every new audio company is focused on podcasting. Joe Rogan, who hosts of the most popular podcast in the U.S. for Spotify, will make a fraction of the money that Stern will over the course of his deal.

Without giving specifics on any agreement, Sirius’s Meyer said last month that Stern was still quite valuable to the company. Stern last renewed deals with the satellite broadcaster in 2010 and 2015.

Sirius has invested in online radio and podcasts in recent years, hoping to keep listeners from defecting to Spotify and Apple Music. The New York-based company acquired Pandora, the online music service, as well as Stitcher, a podcasting service. Yet satellite radio remains Sirius’s cash cow, with Stern at the center of it all.