Howard Stern Loses Appeal Against SiriusXM

Howard Stern lost a bid to revive his pay lawsuit against Sirius XM Radio Inc. after a New York state appeals court found the talk-show host wasn’t entitled to additional compensation.

Stern’s production company, One Twelve Inc., and his agent, Don Buchwald, sued Sirius XM Radio in 2011, claiming the company refused to pay $300 million in stock awards owed under an agreement that brought the radio personality to the company.

howard stern rolling stone interviewJustice Barbara Kapnick of state Supreme Court dismissed the suit last April, rejecting arguments that subscribers to XM Satellite Radio, which merged with Sirius in 2008, should be counted when calculating the compensation.

An appeals court in Manhattan today agreed with Kapnick, saying the plaintiffs aren’t entitled to additional performance- based compensation under the agreement with the company’s predecessor, Sirius Satellite Radio Inc.

“Looking solely to the plain language used by the parties within the four corners of the agreement, the disputed term ‘Sirius subscribers,’ by which plaintiffs’ performance-based compensation was measured, did not include subscribers to XM Radio, a wholly owned subsidiary which defendant acquired by merger, even though the merger had been anticipated within the agreement,” the appeals court said in the ruling.

Pandora Internet Radio vs SiriusXM

Its a crucial day for Pandora Internet Radio.

CEO Joseph Kennedy is pleading his case in favour of the Internet Radio Fairness Act today, a bill that was recently introduced in Congress that would cut the cost structure for music streaming websites.

Unlike SiriusXM Radio, which pays a small percentage of its revenue to music artists and labels, Pandora and other Internet radio stations like iHeartRadio have to pay a royalty for every song that is streamed online.

Pandora’s CEO Kennedy argues that they will pay out around $250 Million in royalties a year, and thats more than half of what they will collect in total revenue this year. Kennedy points out that SiriusXM is paying just 7.5% of its revenue.

However, Satellite radio also offers talk, sports, comedy, and specialty programming like the Howard Stern Show. Each of these channels costs SiriusXM a percentage of income as well, for instance Howard Stern’s channels Howard 100 and 101 cost SiriusXM approximation $100 Million a year to run. In the end its unlikely Internet Radio Fairness Act will pass but if it does Pandora and other Internet Radio stations would have more a lot more revenue to possibly invest into on air talents, thus giving options to future radio broadcasters.

Howard Stern was forced to sue

Howard Stern has claimed that he was left with no other choice but to sue his current employers SIRIUS XM Radio to recoup unpaid stock options.

While addressing his decision to sue the satellite radio company on The Howard Stern Show, Stern charged that SIRIUS XM put him in an unenviable and painful position.

“It’s true that I am suing Sirius,” he said. “I have never, ever gotten on the air and discussed my financial situation… I’m an honest guy who believes in fairness. I believe that I’ve been dealt with unfairly.”

Stern has famously battled the FCC and media conglomerate Infinity Broadcasting Corporation over the course of his lengthy career, but he insists that his grievance with SIRIUS XM marks a new low.

The radio host explained: “It causes me great pain to sue the company I work for… Nevertheless, I had to do it. Suffice it to say, there’s a dispute and I believe I haven’t been given what is mine.

“There’s obviously a disagreement here and it will be settled in a court… I have encountered things that are disturbing before [in my career], but never like this. It’s a business argument and that’s that.”

Howard makes Sirius XM $1.8 Billion

They don’t call him the King of all Media for nothing. As we noted here last week, shares of Sirius XM Radio (SIRI) have been on a tear lately with a gain of 9.35% so far this year.

While some of the gains can be attributed to the strong market, the main driver of the shares has been Howard Stern, who renewed his contract with the company on December 9th and announced that his radio show would finally be available on smartphones. Since then, shares of the company are up over 35%.

In terms of market cap, this translates into $1.8 billion dollars. While terms of the contract were undisclosed, so far Howard has been worth every penny of it

Sirius share price plummets

Shares of Sirius Satellite radio plummeted following their Q3 results, as the company did not answer questions regarding the future of “shock jock” Howard Stern. Net income was a penny a share or $67.6 million. Revenue came in at $722 million which was up 15% from a year ago, but what about Stern?

Stern’s five-year, $500 million contract is up at the end of the year and investors are asking will he be back? Analysts estimate that Stern has 1 million active subscribers but the numbers could be much higher. An analysts which asked not to be named said, that Stern “brings the oomph to Sirius.” Allan Edwards the CEO of The Markets Are Open said “Sirius has some attractive programming but Stern is the straw that stirs my drink.”

Sirius shares dropped 6.7%.

Artie Lange new interview

Q. What is your gut feeling on whether Howard will re-sign with Sirius/XM?

A. You know, honestly, everybody thinks that we all have inside information. I really don’t. I don’t think Howard even knows now. I’m pretty positive negotiations haven’t started. My gut feeling is, if he does come back, there will be an amendment in the schedule, in some way, shape or form. But I don’t know anything at all about that.

Q. Does your second book have a title, or a tentative release date yet?

A. The tentative title is “College Is For Losers,” which is a quote my father said to me. No release date: We’re hopin’ for the Fall.

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No more XM in SIRIUS XM

Howard was going to take a call and he was saying that he’s no longer going to say SIRIUS XM. He said he was listening to an XM radio the other day and they were just saying XM radio. Howard said if they don’t have to say SIRIUS XM then he’s not going to say XM. Howard asked where the quality control is around there. Howard said they merged so they should be using the same name everywhere.

Howard asked if anyone there is listening to the radio there. Howard said he wanted to call someone but he figured no one would listen to him. Howard said he was fuming mad.

Howard said they need a new name for the company. He said maybe they should just call it SIRIUS and leave out XM completely. Howard said that he was driving around hearing XM radio and he wasn’t able to enjoy his triumph of taking the company over.

Riley Martin Still Without a Job

Howard listened to a few clips of Dr. Keith Ablow’s on-air therapy session with the recently-fired Riley Martin: “If Dr. Ablow can’t get through to him, then it’s over.” JD came in to say the pair didn’t make much progress: “No. Not really. I think they’re both sort of-I don’t know.” JD later explained: “Riley thinks there’s this conspiracy of people at Sirius hiding his numbers.

Howard thought Riley’s problem stemmed from the way he approached his show on Howard101: “It’s not a career. It’s a fun little thing he gets to do.”

Howard then played a clip in which Riley yelled at Tim Sabean for treating him like a “dumb old jiggaboo” and decided the channels would be better off without Riley: “Wouldn’t it be great if we just replace him with an hour of people crapping in a bucket?”