Forbes: Stern to Net $670M on Sirius

NewsMax ^ | January 27, 2006 | Carl Limbacher

[Kaslin]

Howard Stern will cost Sirius Satellite Radio significantly more than initially forecasted, according to Banc of America Securities analyst Jonathan Jacoby.

Stern's actual compensation will be close to $670 million, not the $500 million previously estimated, Jacoby said.

"To reach break-even on Stern, we estimate Sirius requires 2.4 million incremental subscriptions," Jacoby wrote in a recent report cited on Forbes.com.

The previous break-even mark was approximately 1.5 million.

An early 2006 surge in sales of Sirius hardware is now starting to fall off despite the continuation of price discounting, according to Jacoby, who reiterated a "sell" rating on Sirius.

[Kaslin]

I got a private message today in a chatroom that Sirius will bring back DOX News again. The investors are demanding it. But I am not sure now that I care with those news. I just keep listening to my Roady. I get Fox News plus Fox radio

[Kaslin]

Dox News=Fox news

[WoofDog123]

stocks go up and down, but long-term they will need to produce some rabbits from the hat to get any big upward momentum again.

[SaveTheChief]

Don't look at me to help Sirius to help pay the foulmouthed Stern's paycheck. I'm sticking with my XM.

[MikefromOhio]

well good for him.

I am sure he will spend a big chunk of it, thereby helping the economy :)

[gondramB]

Their stock has really been down lately - at one point it looked like Stern had added several times his compensation in increased Sirius market cap - its down nearly 30% since Thanksgiving.

[MarineBrat]

You'd have to tie me down to get me to listen to "Ho" Stern.

[A_Niceguy_in_CA]

Howard will bankrupt Sirius before his contract is completely paid out.

[Hildy]

I have Sirius...and I believe Fox news is on. They are fools if they believe that Stern will bring them the kidn of success to justify that salary. Come Baseball season, it's back to XM radio as their programming as better as well.

[Kaslin]

I don't think he's even worth $1mil

[Kaslin]

FOX news used to be on Sirius. But it's not anymore

[Bogey78O]

Stern is sinking Sirius. Who didn't see this from a mile away?

[A_Niceguy_in_CA]

Actually, I meant to say that Sirius will go bankrupt before Howard receives $670 million.

Off-topic: Has Tivo declared bankruptcy, yet?

DirecTV cut off their sales of Tivo, which was about 80% of Tivo's market. DirecTV and almost every cable company and many PC software makers (including Microsoft) have made similar Personal Video Recorders available to the public for less $$$ than Tivo.

[fhlh]

it's a shame too, cause sirius' music programming is better than XM imho.

[cmsgop]

Hey is there a FReeper here who listens to the show on Sirius. Tell me how the show is going so far. Is it the same better or worse. I must say I miss Stern on my commute.

[cgk]

I got a private message today in a chatroom that Sirius will bring back FOX News again

Any idea when? I wrote Sirius, and then everyone at Fox News about it. Sirius wrote back, as did Dana for O'Reilly (only 1 at FNC to respond) and they both said the other one was to blame! We'd switch but we bought Sirius for NFL AND Fox News - and have 2 of them. Now - no NFL and no FNC. :(

[cgk]

Hey is there a FReeper here who listens to the show on Sirius. Tell me how the show is going so far. Is it the same better or worse. I must say I miss Stern on my commute.

Ping to WPtG - he's heard some of it. Maybe he can answer your question.

[dead]

Me too. I may crack in the coming months and sign up. I was going to wait until I purchase a new car in a year or two, but my commute is much less entertaining these days.

[cmsgop]

I hear Ya Brother!

[Thebaddog]

Sooner or later, the numbers come in.

Do you remember 1999 and the dot.com revolution? Say goodbye to the smutradio thang.