SiriusXM Likely Keeping Howard Stern, Could Lose Portnoy, Barstool Sports

SiriusXM lured Howard Stern away from terrestrial radio in 2005. The shock jock has been a staple of the company for the last 15 years; his contract expires in December.

Howard Stern Renewal: SiriusXM Holdings SIRI is close to a renewal deal with Howard Stern, according to Bloomberg. The proposed new deal would pay Stern $120 million per year, up from his previous $80 to $100 million salary, the report said. 

Analysts have speculated that Stern could leave SiriusXM and go to rival Spotify Technology SPOT. Bloomberg said Stern’s talks with Spotify did not progress.

Barstool Sports Loss: Dave Portnoy, the founder and president of Barstool Sports, took to Twitter Tuesday to tell his 1.8 million followers that Barstool is unlikely to renew with SiriusXM.

He said he can’t work for "peanuts," sharing a tweet listing Stern's rumored annual salary. Portnoy said Barstool is “99.9%” out of Sirius negotiations.

See this is why I can’t work for peanuts. Im not Stern. But I’m not nobody either. https://t.co/0srZuwU4Wl

— Dave Portnoy (@stoolpresidente) October 6, 2020

Barstool launched a 24/7 channel in 2018. 

Barstool Sports has seen strong download numbers for its sports betting app in partnership with Penn National Gaming PENN. Portnoy has said Barstool’s loyal following is a reason the company doesn’t have to spend as much as rivals on advertising.

I’d say we’re 99.9% out of Sirius. We aren’t in same stratosphere in terms of negotiations. We will just move on to new platforms as always. Our crowd will follow as always.

— Dave Portnoy (@stoolpresidente) October 6, 2020

Benzinga’s Take: SiriusXM has 34 million paying subscribers. The company reported $7.8 billion in sales in the last year. The company’s CEO Jim Meyer is leaving at the end of the year.

The competition continues to heat up for SiriusXM, with rivals like Spotify shelling out huge amounts for exclusive deals.

Renewing Stern is a big deal for SiriusXM: he's the biggest name the company has.

Losing Barstool Sports and its loyal fan base could be a big loss and lead to subscribers leaving the company.

Spotify could make a run at Barstool Sports to boost its star power.

Liberty SiriusXM LSXMA shares could also be on watch, with the company owning 71% of SiriusXM along with partial stakes in Live Nation, iHeart Radio, Formula One and the Atlanta Braves.

SIRI Price Action: Shares of SiriusXM were trading 4.3% higher to $5.80 at last check Wednesday. The stock is down more than 20% in 2020. 

Image: Bill Norton, Flickr