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?
By THE DEADLINE TEAM | Tuesday March 22, 2011 @ 3:05pm PDTTags: Howard Stern, Lawsuit, Sirius XM Satellite Radio
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This article was printed from http://www.deadline.com/2011/03/howard-stern-sues-sirius-xm-over-stock-awards/
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