The question is will it be a material event for Sirius stock after the exit of Stern. Howard Stern who is beloved and a hated radio personality was the cornerstone radio personality in trying to build the Sirius franchise. However was it at to high of a cost? This year Sirius will pay Stern 100 million as they have done for the last 5 years. The question is can Sirius remain popular after Stern.
James Maker a Sirius subscriber said "I spend most of the time listening to Stern on the radio, I also sometimes listen to Jim Cramer, but Stern leaving...well I am not sure if I would still listen."
Howard Stern used to have over 20 million listeners a week which is currently the number of subscribers Sirius has. Today, only around 1 million people listen to Stern regularly. Stern who is 56 has continued to hint that he is likely to leave the company when his contract runs out at the end of this year.
CEO of Sirius Mel Karmazin has said that after Q3 there will be an announcement on the future of Howard. However, it is likely Stern does not want to continue his contract due to his dwindling popularity.
Sirius stock is approaching a 52 week high, it remains to be seen if satellite radio has a viable future.
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