The drama is over for Sirius XM, as star personality Howard Stern announced he had reached a “fair deal” to stay with the satellite radio company for an additional five years. The announcement caused a spike in Sirius’ stock price through the early hours of Thursday’s session.
Sirius XM, the satellite radio company, had been in long negotiations with its star “shock jock” Howard Stern over the renewal of his contract. Stern, who came on in 2005 with a five-year $500 million dollar contract, had told his listeners he would not be “taking a f-ing paycut,” claiming he was “bigger” than Sirius’ prior target, Oprah.
Things finally worked out on Thursday, with Stern telling his listeners he had reached another five-year contract with Sirius for an undisclosed amount. His personal website boasts one line affirming the deal and anticipating “details to follow.” Stern ranked 39 in Forbes’s 2010 Celebrity 100.
In a statement from Sirius, Stern is quoted saying that when he started at Sirius the company had “approximately 600,000 subscribers. Today, the two companies [Sirius and XM, which fused in 2008] have 20 million; and, in my view, we have just scratched the surface of how many people can get on board.” Sirius, which has constantly sought to expand audiences through new deals and hot talent, announced that the new contract would give them the right to transmit Stern’s show on mobile devices.