Thursday, December 10, 2009

HOWARD STERN RECONSIDERING HIS RELATIONSHIP WITH SIRIUS SATELLITE RADIO

Mixtape Sessions. Music for the People.

Once upon a time, Howard Stern saved Sirius Satellite Radio, but the once-terrestrial jock is now reconsidering his options. "I don't think I'm going to be re-signing," Stern stated on-air last month, according to comments relayed by the Wall Street Journal. Perhaps some renegotiation posturing, though the ultra-expensive Stern could be tough to retain after an expiration late next year.

And, since Stern stepped on board, things have changed at Sirius. The now-merged Sirius XM Radio remains awash in debt, and its high-cost structure is unsustainable against soft subscriber growth. Stern entered the Sirius booth with a five-year, $500 million cash and stock package, just the beginning of a compensation balloon.

Additional stock bonuses upped the figure considerably, though shares are now languishing at sub-$1 valuations. At the bell on Wednesday, Sirius (SIRI) edged downward to 63-cents, a fraction of earlier prices.

SOURCE