NEW YORK (Reuters) - Howard Stern will be shocking listeners Sirius XM Radio Inc. for at least five years, the news that the actions of the radio programming undertaking by satellite to more than 6%.
According to a new contract, announced Thursday, Stern be broadcasting up to 31 December 2015, and content of the shock jock will be available for the first time on mobile devices, Sirius XM has stated in a press release.
Previous five years Stern $ 500 million with Sirius XM Radio contract expires this month, and investors have been concerned that subscribers would abandon the service if it was moving.
An estimate says Stern has 1.2 million subscribers on board when he joined Sirius in 2006. SIRIUS has merged with XM Satellite Radio in 2008 and the service has now reached 20 million listeners.
No other new contract terms were disclosed. (Breakingviews history on the value of Stern, see [ID: nN09102988])
Stern, who often swear on air and adult content features on his show is famous for shocking audiences. He was fined several times while he was on terrestrial radio.
Analysts said investors can breathe now easier future Stern has been resolved.
"It was a cloud on Sirius XM this year," said Lazard Capital Markets analyst Barton Crockett.
Impact on Sirius XM will not clear until further details on the new contract in the light, analysts said.
"The question is what type of package has been established?", said Maxim analyst John Tinker group.
Sirius XM said its programming costs would continue in the year in the fall, and Wall Street hope Stern will receive less in the new agreement.
Crockett believes that Stern will get 80 million per year in cash, the same amount that it is now, but not the $ 100 million in inventory over five years that he had already received.
Firstly, Stern announced that he had reached an agreement with Sirius XM on his morning show and its Web site.
SIRIUS XM said last week that he had hit a new contract with the national football league to broadcast the games in 2016 and play-by-play online streams.
SIRIUS XM is also programs by Oprah Winfrey and major league baseball. He has published four quarters straight profit and is regularly adding subscribers, distancing himself from years of huge losses and questions about its business model.
A large part of its subscriber growth comes from buyers of new cars that have installed radios. More than half of trial customers become full paying subscribers after promotions.
SIRIUS XM shares increased by 6.4% to $1.40 afternoon Nasdaq stock market.
(Reported by Liana Baker.) (Editing by Derek Caney and Lisa Von Ahn)
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