Monday, March 27, 2006

Howard Stern Deal

There is a lot of speculation surrounding the Howard Stern deal. The deal boils down to this:

1. The deal is roughly $390,000,000 in cash over 5 years and 34,375,000 shares to be paid if certain pre-determined subscriber goals were reached. At the time of issue the shares were worth roughly $220,000,000.This put the value of the deal at about $610,000,000.

2. Details of the transaction can be viewed at http://www.shareholder.com/sirius/edgar.cfm Click on the 8k form filed January 5, 2006.

3. The shares were not a bonus. They were clearly identified as part of the base contract. The SEC filing states, "....Pursuant to our October 2004 agreement with Stern, we agreed to deliver these shares in December 2010, or earlier if as of the end of any fiscal year we exceeded agreed upon subscriber targets. Our December 31, 2005 subscriber total exceeded the subscriber target we agreed upon with Stern in October 2004."

4. The Howard Stern dealencompasses all of the talent, staff and programming on the Howard Stern streams. Shows such as Bubba The Love Sponge, Scott Ferrall, Howard 100 News, the staff, etc. are all part of the deal.

5. Sirius has stated that Stern can earn additional revenue, but stated that any additional revenue is tied to substantial targets.

The link for this write up - http://satellitestandard.blogspot.com/2006/03/howard-stern-deal.html

This write up contains factual information as well as opinions. Readers are encouraged to do their own research regarding these matters. If you have an opinion on this write up you can e-mail it to satellitestandard@gmail.com. Satellite Standards may elect to publish all or part of responses we receive.

3/27/2006 04:45:00 PM

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