-- Updated Howard Stern contract with comment from Stern and CEO Mel Karmazin.
NEW YORK, (
shares soared more than 10% after Howard Stern said he had agreed to a new five-year deal.
but declined to reveal the terms of the new contract other than to say it included distribution beyond radio.
"I am especially excited that my show will now be heard through SIRIUS XM on mobile devices. Access to my show on mobile devices will open up additional opportunities for my fans to hear me wherever they are," Stern said in a press release Thursday.
The news comes as Stern's five-year $500 million contract was set to expire at the end of this month. The new pact ends months of speculation about Stern's plans.
Sirius, which has shifted from an era of rapid growth to more of a focus on cash flow, had boasted that it was locking in new programming contracts at a lower rate. This was seen as a sign that Stern may have to agree to something less than $100 million a year.
Sirius brass sounded jazzed in the same press release.
"Howard is a great talent and we are thrilled that he will continue to provoke, engage and entertain on Sirius, CEO Mel Karmazin said in the release. "Our agreement is good news on all fronts - it is good for Sirius subscribers and good for Sirius stockholders.
Howard Stern: His Road to Sirius XM
The news will come as a slight surprise to readers who
. According to those polled, 51.8% expected Stern to sign on again but for a two year or less contract.
Investors seemed to recognized the value of Stern who, as a key personality, not only attracts subscribers but also advertisers to his show.
Sirius shares opened up 9 cents, or 6% to $1.40 Thursday.
--Written by Scott Moritz in New York.>To contact this writer, click here: Scott Moritz, or email: firstname.lastname@example.org.To follow Scott on Twitter, go to http://twitter.com/MoritzDispatch.>To send a tip, email: email@example.com.