Tuesday, May 30, 2006

Sirius 8K Release - $2 Million the Only Payment to CBS

May 30th, 2006

Sirius had announced that the 20 year catalog of Howard Stern materials will be available to them for the Howard Stern channels through the duration of his contract with Sirius. However, their 8-K, released today, states that this 2 million dollars is the ONLY payment under the settlement agreement that they will be paying out.

Whether Stern did or did not have to pay out anything himself is unknown due to a seal on the settlement agreement.

From Sirius's 8-K:

Section 8.01 - Other Events.

The lawsuit brought by CBS Radio Inc. against us along with Howard Stern and others referenced in Item 3 of our 2005 Annual Report on Form 10-K has been settled. As part of the settlement, CBS Radio is conveying its rights in the recordings of the Howard Stern Show that aired on CBS Radio from 1985 through 2005. We will have the right to use those recordings as part of our Howard Stern channels through December 2010. We are making a total payment of $2 million to CBS Radio. This is the only payment we will make under the settlement agreement.

A link to the 8-K is: HERE. (via shareholder.com)