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Howard $tern's Big Payday

Frank Ahrens

The King of All Media can book another $83 million to his net worth.

Howard Stern's employer, Sirius Satellite Radio, announced today that it has rewarded its star shock jock with 22 million shares of company stock for bringing listeners with him from FM radio when he moved to satellite in January 2006.

As part of his eye-popping $500 million, five-year deal with Sirius signed in October 2004, Stern would receive a performance bonus if Sirius ended 2006 with 2 million more subscribers than analysts estimated it would have gained without Stern.

Analysts predicted Sirius would end 2006 with 3.5 million subs. Instead, the service now claims slightly more than 6 million subscribers. Essentially, solid evidence of the Stern Effect .

I figured Stern would be good for about 1 million new subs for Sirius. Looks like I was off by half. (Of course, there's no way of knowing how many new subscribers Sirius would have picked up in 2006 on its own if it had not signed Stern. But why would I rain on this parade?)

By Frank Ahrens  |  January 9, 2007; 1:45 PM ET  | Category:  Frank Ahrens
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Please email us to report offensive comments.

he*s a ok.

Posted by: me | January 9, 2007 2:44 PM

This Sirius is really dolling out the cash. I hope it all turns into profits one day.

Posted by: Andrew | January 9, 2007 2:54 PM

I have a small critique about your otherwise fine article.

"...Sirius Satellite Radio, announced today that it has rewarded its star shock jock with 22 million shares of company stock..."

Who's shares? You are not the only author who does this, but this bugs me: where did the shares come from? Do all share holders that 'own' a piece of Sirius, now own a bit less do to dilution? What I'm challenging you to report is: 'who paid, in addition to who got paid'. Those shares did not come out of the air.

Posted by: John R. | January 9, 2007 3:00 PM

Dha... Sex sells. Entertainment sales...

But lets keep in mind Howard isn't a God!
Howard is a trend with a great batting average
and a great home run! His winning streak
is abundance and can be replaced by any player.

Posted by: seybold | January 9, 2007 3:05 PM

He was given the stock, and immediately registered to sell it. Guess he's not very confident in the future of this company, either.

Posted by: doh | January 9, 2007 3:09 PM

Good point, John R.

Here's what the Sirius release says regarding the stock:

"The shares of SIRIUS common stock issued, or any likely to be issued to Stern in the future, will not increase the company's fully diluted share count, as certain other currently outstanding warrants will expire without exercise in the ordinary course."

Posted by: Frank Ahrens | January 9, 2007 3:21 PM

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