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Well, the honeymoon period for Howard Stern and Sirius XM Satellite Radio sure didn’t last long. Howard Stern’s production company One Twelve and the radio host’s manager filed a lawsuit today in New York state Supreme Court, claiming the company reneged on its promise to reward Stern if Sirius XM exceeded certain subscriber marks. The suit says that when Sirius and XM merged, the combined entity’s sub base hit 20 million but has not paid out its alleged agreed-upon awards, which includes a 10% fee to Stern manager Don Buchwald, according to Bloomberg. The news comes only three months after the shock jock finally signed a new five-year deal to remain at Sirius XM, just before his original five-year, $500 million blockbuster of a contract was set to expire. (After the new deal was signed, Sirius XM shares jumped more than 5% following a flat spell.) At one point at the beginning of his original contract, which he signed in 2005 but didn’t take effect until Jan. 1, 2006, then-Sirius Satellite Radio paid out more than $200 million in stock awards to Stern based on subscriber gains. The new suit seems to beg the question: Did Stern earn the latest extra subscribers or were they simply a product of the XM merger?
Howard Stern Sues Sirius XM Over Stock
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Sirius must be claiming the merger and subsequently acquired subscribers from XM do not apply to his royalties/bonus.
This will settle out of court, non disclosed amount…Howard makes a couple more million…
Haven’t read all the posts below, but Howard actually has a strong case here. Is it forensic analysis strong? No. there is no calculate or DNA test to perform to determine how many subscribers signed on to Sirius for Howard. but clearly it was more than enough because he did get his stock awards early on for hitting those Sirius subscriber targets. And let’s be clear, froma legal standpoint it does not matter if even a single person from XM subscribed for the Howard sirius package when XM got acquired. Fact is that XM subscribers weren’t asked whether or not to become part of Sirius other than the large shareholders. you and I were just brought along for the ride. So any XM subscriber that posts whether or not the subscribed to Howard after the merger doesn’t mean anything as far as this case goes. The core of this case is exactly one thing: If Howard had not signed on with Sirius, would Sirius have ever been in a position to acquire the subscriber base of XM. For anyone that has really looked at the numbers, both top line and bottom line, and has really followed this since the beginning, the answer is pretty clear that Sirius would have folded or would have been acquired by XM if not for Howard Stern. So he did indirectly bring all of those listeners to Sirius, whether they love Howard or hate him, XM subscribers are paying money to Sirius because of him. …and yes, this will be settled out of court
This is my guess on what went down after reading some news reports;
First; Howard is a company man and is true to his word. He promotes endlessly for this co and is a great spokesperson. He IS sirius and the subscribers he brought with him helped that co fold XM into Sirius. Howard was a gentleman and withheld filing this law suit until the co achieved financial stability after its merger with XM. He had a case and could have filed it long ago, but chose to hold off. Whether or not Sirius XM owes this money or not is for the courts to decide. But it sounds like simple professional differences re how one wants to interprete his contract. The fact that this filing was made within mos of his contract renewal was coincidental. I think it has more to do with where the stock is trading at a given time, period. I am sure Mel K and the gang at Sirius knew this lawsuit was a possibility before Howard’s contract renewal happened. Howard and Don are not the type to blindside someone, let alone their partners, in a coimplaitn unless it was legitimate.
Just speculating.
Well said. There’s a part of me that revels in the possibility that this problem will seep into his program to hear him go nuts like he has in the past. But the show has been so freaking good for the past couple of years, that I hope he/they straighten this out quickly and without acrimony so he can get back to what he does best: Talking on Sirius with no holds barred. He’s the best!
Either that or he’s decided that he made a big mistake renewing and will use this as a ploy to opt out.
Howard has no place to go which will pay him the same money while providing an uncensored forum for his show.
Except to retire.
He could go online and stream / podcast, charge a nominal monthly fee and eventually make more than he is now and have no advertising.
Howard is probably including all the XM subscribers that are now a part of Sirius XM in his lawsuit, but the question is how many XM subscribers ponied up for the best of Sirius package to hear Howard? I know I didn’t.
I agree with you. I don’t think the bonus is applicable. The MERGER added the new subscribers, not Howard. PUH-LEEZ spare me. Stern has enough money and this is BS. I believe that Stern is trying to get out of his Sirius deal because he found out that the FCC was overruled with the imposition of those fines that drove Stern to Sirius from broadcast radio in the first place. Stern wants his fans to adore him and how many of them pay for Sirius? Not me!
I love how you are the one who determines who has enough money, as if you even know how much anyone there makes.
It’s in the article. He is going to end up making at least 1.2 billion dollars. I feel like a slacker. Don’t even have money for a Big Mac. Sheesh!
So, do you really think an XM-Sirius merger would have happened with Sirius as the victor if Stern had not been on the channels? Think long and hard about that one before you think you know a tiny bit and exploit. Agree with “joe” as well.
Yes I do. People don’t pay for radio when they can get it for free. Ultimately one of the satellite radio companies would have folded. It was a matter of time with or without Stern.
If you got Sirius, you got it for HOWARD. IF YOU GOT XM, YOU GOT IT FOR OPIE & ANTHONY. End of story, end of discussion.
no one cared/cares about Opie and Anthony
I got Sirius, and it wasn’t for Stern. He’s an untalented hack. People think he’s ‘cool’ because he says them there ‘curse words’ on the radio. The reality of it is that he was done being edgy about 10 years ago, now he’s just rehashing the same crap and hoping for some attention. I’ve had Sirius about 3 1/2 years, and never listened to any of Stern’s channels and never will.
I also don’t need ‘Opie and Anthony’, side step in the same direction, if you ask me.
I have never listened to Opie and Anthony. I have XM just pay extra for the sirius package and listen to Howard. The deals on the radios I use where to good from XM.
I’ve subscribed to Sirius for over a year now, and never listened to Stern. Until I see an article like this, I forget he’s even on Sirius.
Who’s Opie and Anthony? Getting back to reality, Howard Stern is Sirius/XM. With out him, they really have nothing.
The fact is XM radio subscribers do not get Stern, they would have to subcribe to a best of Sirius package to hear him.
Another thing is that XM already had about 10 million subscribers BEFORE THE MERGER, and Stern was working for Sirius. In other words Stern has zero impact on the XM listeners. How can Stern take credit for XM subscribers, then and now. I think they may have even subscribed to XM because they didn’t employ him.
Simon, you really have nothing. XM has a hell of a lot more then that jerk.
@arrowsir: If you got Sirius, you got it for HOWARD. IF YOU GOT XM, YOU GOT IT FOR OPIE & ANTHONY
Bullshit! I HAD XM for THE MUSIC. XM music channels had deep playlists, I actually heard songs on the decades channels that I hadn’t heard since they were first released back in the 60s/70s. Once Sirius bought them out they proceeded to trash XM and cut the playlists back in some instances down to 300/400 songs. Why should I pay them to hear the same crap I can get for free on FM? As for Howard, it takes no talent to talk about T&A day after day, that’s the lazy DJs easy way out. Opie & Anthony, the same thing. Maybe Mel & company should sue Howard for all the Sirius/XM people they lost once they had to jack up their monthly costs to pay his stupid ass.
Good for Howard and Don but I was quite dismayed to hear today that Howard will soon go to a 3 day a week schedule especially since he’s already cut back his daily show by an hour and rushes through that last hour to make sure he’s off by 10am when he used to go past 11am for the last five years. From a 20 year listener the show has suffered since the new contract.
Agreed – and anyone else notice the exponential increase in commercial breaks since January? RELENTLESS…it’s like I’m listening to CNN. No groove, no rhythm!
I’m curious…did Stern’s original Sirius deal retain his terrestrial radio ad sales set-up (he sold his own ads, made mad bank), and did Sirius stipulate that they had to share in that for the renewal? Or did he retain the rights and is just more focused on opening the cash register?
Love the man (when he isn’t inadvertently turning in to his mother – which happening more and more), love the show, his interviews are peerless, miss Artie and will indeed lament the shorter weeks…my guess is that move will just happen to occur around summer/Hamptons season.
XM subscribers don’t even get Stern and these greedy … wants to get paid off like he’s responsible for doubling these subscribers from 10 to 20 million?
Stern only has 400K twitter followers, I think even his fans are sick of him. I wish he quit Sirius and we’d finally see that he wasn’t that much of a factor in subscriber numbers, but I guess now they can’t prove that since he re-signed. He probably had this lawsuit in mind as a way to get close to his original contract.
I actually subscribe to Sirius and have not spent one second on Stern’s channel.(I do get the Best of XM for a certain show.)
Ron and Fez? Opie and Anthony?
Rapekit and Crawlspace. Okay two shows, I do listen to Opie and Anthony too.
@yakimi – Howard Stern has no talent ??! Dude you’re smoking ROCKS !!!!
T.O.P.L.E.S.S.
Release the poison Raven.
@Sean, I’m with you. I’m not too happy knowing Howard will go to 3 days. As much as I love him, 3 days may not be enough to justify the monthly bill. As far as the lawsuit is concerned, Howard respects Mel K too much to do this just because. I’m sure this was the last legal way to get what he’s due.
I enjoyed Howard when he was on terrestrial radio for a long time. Once he went to Sirius I decided $15/month for radio wasn’t worth him. He’s irrelevant and has lost his influence behind a pay wall.
This play is either about more money or a contract release.
Speak for yourself, Stern is not only still relevant but he’s even funnier now than he ever was. If you don’t want to pay 15 a month for him, then that’s up to you. Me, i will continue my subscriptions.
No Howard, no merger. He should get something. Maybe not everything, because sirius paid to acquire xm. Those weren’t free subs.
Seems like something that could have been anticipated by either side. In a world of rapidly consolidating media, a sirius-xm merger was always easily imaginiable.
XM was slowly losing the subscribership battle to Sirius over the last few years, largely due to Stern. The writing was on the wall. XM was the bride and Sirius was the groom in this merger. Why? One had Stern the other did not.
Stern was only relevent when he was on Terrestrial Radio????- with the FCC issues, cutting out large portions of conversations with guests, disrupting punchlines to jokes and bits, and generally destroying the continuity of the show, not to mention the endless commercials. Stern’s show now you can listen to any time of day. There are limited commercials. He may talk for an hour or more straight- without a break or commercials. His content is not censored. His show is a greater ‘Product’ now then it ever was.
Stern is washed up and is only doing 3 days a week of his show. The fact is the XM still had more subscribers than Sirius and they don’t get his show then and in order to hear it on XM they have to subscribe to a ‘best of Sirius’ package. That still doesn’t equal 12 million subscribers. It seems like a very meritless lawsuit.
The question is, if there was no merger would Sirius have 12 million subscribers by January 2011. No way. They’d be very, very, very lucky if they got to ten million. Most likely it would have dropped down to eight, based on the trend.
Another thing is Stern is on twitter for months and only has 400K followers. Meanwhile someone like Charlie Sheen can get 4 million followers in the the calender month of March.(he joined twitter march 1st)
Its a little of a buzz kill to hear this stuff. There should be a clear understanding contractually and Sirius should stand up to the agreement. On the other side, getting a little tired of hearing how money grubby Howard is. I listen to the show religiously, as its a guilty pleasure, but really you’ve made alot of dough Howard! More than Letterman or any of your competition, other than maybe that dumb cow Oprah. And its always sad to hear how your co-workers on the show are hurting for money as they aren’t properly paid…even Riley Martin, who you advertise non stop for being such a weirdo, yet you are still using his oddity to promote the show. And its ultimately what’s wrong with this business right now, the top guy takes every little penny and leaves peanuts for everyone else that support them. You can’t take your money with you dude, and you don’t spend it, you pat yourself on the back on how thrifty you are. Get over your enormous ego already…and stop being a ‘victim’ and wearing it like a badge of honor. Or as Artie would have said, WAHHHHHHHHHHH!!!!!
without Letterman, CBS would still be CBS
without Stern, Sirius would be a joke.
Howard is correct – they should just call it Stern Radio.
Howard has always fulfilled his end of contacts and its time others do as well.
It’s time for Howard to fulfill his end of the deal and do a real show and stop just calling it in. He has nothing anymore. He’s done. Robin does nothing but agree with everything he says, doesn’t she have a mind of her own? Come on Robin, get out from behind your glass cage and join the show again and maybe they MIGHT be able to start doing a funny show like the good old days.
Howard and Mel needs to quit milking the company for all they got and just do a show he was hired to do.
I think this is more about a lack of respect that Howard perceives than the money. Oprah is lauded like a goddess at Sirius, despite the fact that she puts little effort into her channel, while he doesn’t get the recognition he is due for helping turn the company around.
You Stern haters can say what you will; the facts are the facts. XM was beating Sirius practically into the ground, until Stern came to Sirius. Sirius was then able to take over XM within a few years. Call it a merger if you will; it was really more of an aquisition.
That said, I’m not too happy that he seems to be rushing through the show most days, and that he will be on only 3 days per week in the future. Would have almost prefered he just retired.
Blah, blah, blah…..this is strictly a contract language issue. Howard and his peeps think that the additional listeners added by the XM merger count toward his bonus and he might be right. If his contract did not specifically exclude listeners added by mergers, he may get paid. What does he have to lose? A couple million in legal fees? A bag of shells for Howie.
Howard stern without a doubt is THE reason its Sirius/XM instead of XM/ sirius. It’s true not EVERY subscriber signed up for Stern but he did lend his name and put Sirius Radio in the headlines for years. Very few people heard of Sirius before he signed and his hard core fans started a stampede for Sirius subscriptions that resulted in shortages of radios and difficulty activating one if you were lucky enough to find one still on the shelf.
If not for The Howard Stern Show Sirius would never have had the leverage to force a merger. The contract says “subscriber goals” not Stern fan numbers. Its all fruit of the tree. Love him or hate him but don’t deny his impact on Satellite Radio.
Well maybe it’s time for Howie to call it good and retire with his massive pile of lucre. He had a great run back in the day, but it’s just sooo old and worn out now. Endless t&a shite from a 50-something chasing a demo 20 years younger. Pretty f-in lame IMHO.
Listen to O&A if you want truly compelling radio without the Dear Leader personality cult.
Bummed about the lawsuit only because it must mean that Sirius/XM is not meeting their end of the agreement. Howard Stern is HONEST and hasn’t sued over issues where he certainly could. I have Sirius in 3 cars, and XM in 1 car (it came with it) and I immediately bought “Best of” in order to GET HOWARD. I can’t speak for other XM listeners, but I was cancelling ALL of my subscriptions if Howard didn’t re-sign. I have listened to him since the 80′s. It is true that he is cutting down to 4 hours most days, but since he arrived at Sirius he has worked many extra hours most days of the week and did Sirius appreciate that??? I don’t know, but the fans did. He constantly stayed on the air for extra hours in order to finish things that were going on.
One day with Howard’s live show is worth more than the monthly fee. I am happy that we have 5 more years and will lament the day the show is over. It will be a bitter pill to swallow. As far as his show being all T&A–give me a break. Listen to his show regularly and you would never say that. He has a diversity of UNIQUE programming that is simply unparalleled. My favorite part of the show is the first hour when he just comments on how he views every day issues. Howard is an entertainment genius and has an ability to know what works for his radio audience. He never ceases to entertain me. Howard can make people forget their most difficult days and find humor in their daily life.
Howard just give it up, no one cares about you anymore. Mel is close friends of Howard and that’s the only reason he got the deal he has. Mel get’s a large cut of Howard’s salary. IT’S FRAUD. Wake up people. Just stop it when it comes to believing everything Howard says. His fan really are brain washed, how can you really believe the bullshit he puts out there?
well wth his latest announcement that he’s going to 3 days a week, sirius can say goodbye to my 2 subscriptions when they run out in a couple of weeks. The Hamptons have gone to this man’s noodle.