Howard Stern will be shocking Sirius XM Radio Inc listeners for at least five more years, news that pushed the satellite radio company’s shares up more than 6 percent.
Under a new contract announced on Thursday, Stern will be broadcasting until December 31, 2015, and the shock jock’s content will be available for the first time on mobile devices, Sirius XM said in a statement.
Stern’s previous five-year, $500 million contract with Sirius XM Radio expires this month, and investors had been concerned that subscribers would abandon the service if he were to move on.
One estimate says Stern brought 1.2 million subscribers aboard when he joined Sirius in 2006. Sirius merged with XM Satellite Radio in 2008, and the service now reaches 20 million listeners.
No other terms of the new contract were disclosed.
Crockett estimates that Stern will get $80 million a year in cash, the same amount he makes now, but not the $100 million in stock over five years that he had previously received.
Stern first announced that he had reached an agreement with Sirius XM on his morning show and on his website.