On Dec. 9, Howard Stern announced that he signed a new 5-year deal with Sirius XM, ending months of speculation about the shock jock's plans.
Sirius stock is up almost 120% over the past year and has recently been trading around $1.40. Shares surged more than 9% on Thursday morning following the news of Stern's contract, which came less than a month before his original 5-year, $500 million contract was set to expire.
Many investors were worried that Sirius CEO Karmazin wouldn't be able to afford giving Stern a raise to keep him with the company and were especially concerned about how many subscribers Sirius would lose if it lost Stern.In early September, Karmazin spoke at the Bank of America and Merrill Lynch Media, Communications & Entertainment Conference, where he told the audience he was "very confident" that Stern wouldn't leave Sirius. He added that even if Stern left the satellite radio company, he's wasn't too worried about losing listeners. "They may have come for Howard, they may love Howard... but they listen to other channels," he said, the Los Angeles Times reported. -- Written by Theresa McCabe in Boston.
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