Will Howard Stern Stay With Sirius? (SIRI)

Sirius XM Radio Inc. SIRI reported earnings this morning, that were better than expected. The satellite radio company reported revenue of $722.5 million, and had earnings of 1 cent per share. This was above Wall Street estimates, of $718.7 million in revenue and no earnings. The company had 334,727 new subscribers in the quarter, boosting totals to 19.86 million. The most important thing really that everyone (including Wall Street) wants to know, is will the company resign Howard Stern? Stern has been a tremendous driver of growth for the company, hence that 5 year $500 million contract it paid him and his team. The contract is up at the end of the year, and CEO Mel Karmazin has said that negotiations are ongoing, but nothing to note yet. If Stern leaves, what would that mean for Sirius, and its shareholders? Initially, the stock might sell off on the headline news, but ultimately it may prove to be a positive for the company. Stern and his team cost a ton of money, so perhaps a better deal for both Sirius and Stern is a lower cost deal, at less hours. Stern has other platforms to go to, whether it be an internet app, streaming or other form of communication. His brand of content will forever be popular, and where he ultimately decides to go will be worth keeping an eye, and an ear on.