by Dennis “Cos” Costa (see update)
Well the deal is finally done. As announced on Howard Stern’s radio show this morning on Sirius XM Radio (NASDAQ: SIRI) channel 100, Stern released the information that a Five-Year-Deal had been reached. The details were not revealed as to the financial cost or programming details. Howard did say the he was very pleased to have the deal done, and now is awaiting the completion of negotiations with other members of his team before being able to give any more information.
To investors and fans alike, this represents another milestone reached by the company in retaining unique and premium content that has made the Satellite Radio Company popular during the last several years. On November 30th the company also announced that it had reached an agreement with the NFL for another five years, through end of the 2016 football season.
The company continues to show growth in its subscriber base, marking its 20 million subscriber milestone with a celebration, spotlighting Paul McCartney to a closed audience at the Apollo Theater in New York City on December 13th.
Listen to the Howard Stern show for more detail, as Mel Karmazin, CEO of Sirius XM had promised. This news takes much of the risk out of the equation from a Premium Content perspective, leaving investors and analysts to await the financial details to measure the impact on operations over time. Removing risk is most always a good thing.
Up-date: Howard announced that his programming will also now be available on all of the Smart-phone Applications, which represents a significant programming access change under the new contract.
Position: Long SIRI
Disclosure: I am Long SIRI.