Howard Stern signed a sizable 5-year contract with Sirius XM this morning, which has made fans ecstatic and stock prices go through the roof.
Stern’s original 5-year, $500 million deal was set to expire in less than a month — something that’s been worrying investors. After news of the new 5-year agreement, Sirius XM’s (SIRI) share price shot up by 10% to $1.44 in pre-market trading. Now, at 4PM EST, it’s trading at $1.39.
Surprisingly enough, SIRI’s year-to-date performance is quite dazzling: Share prices up 119.17%! In this economy not many companies can pull that off.
According to TheStreet.com, “For the quarter ended September 30, 2010, the company saw earnings swing to a profit of $67.6 million, or a penny per share, compared with a loss of $151.5 million, or 4 cents per share, in the same period a year ago. Earnings came in one cent ahead of analyst estimates of 0 cents.”
I’m looking forward to the future of Sirius and believe Howard Stern will play an integral role in the company’s success. We shall see.
Aaron Schoenberger is Founder of The Brainchild Group — a Search Engine Optimization (SEO) and Social Media Marketing company in Los Angeles, California. He’s known for his work with celebrity clients, top restaurants, professional athletes and Fortune 500 companies.