Sirius XM Stock Spiking On Howard Stern's New Five-Year Deal

• Shares of Sirius XM Holdings Inc. (NASDAQ: SIRI) rose more than 4.5 percent Tuesday morning.
• Sirius XM announced it has reached a new 12-year deal with Howard Stern.
• As part of the deal, The Howard Stern Show will continue for the next five years and will eventually launch into video programming.

SiriusXM announced it has reached a new 12-year agreement with legendary broadcaster Howard Stern.

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As part of the new agreement, Stern will continue producing and hosting his talk show, The Howard Stern Show, for the next five years. The deal also includes plans to expand into video programming which will be announced at a future date.

Stern's live show will continue its regularly scheduled broadcast on the Howard 100 channel from 7:00 a.m. to 11:00 a.m. ET. Stern will also continue producing the Howard 101 channel, which consists of current and classic episodes of The Howard Stern Show and original special programming.

"As a broadcaster, it does not get better than working at SiriusXM and I'm truly excited for the future with this great company," said Howard Stern in SiriusXM's press release. "I happen to think that its best days are ahead. So, if you are not listening to SiriusXM and The Howard Stern Show, then you are really more like a zombie, a rotting corpse monster, living half a life, deadened and blackened inside. It's as if you were still watching black and white television while shopping in actual stores on your way to the post office to fax a memo."

Stern's previous extension brought him $80 million annually; The new contract is expected to exceed that amount.

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There was talk that Stern might jump to Apple Inc. (NASDAQ: AAPL) when his Sirius deal came to end. Sirius subscribers are now cheering this news. The stock traded recently at $4.16, up 4 percent in the pre-market session.

"This is a unique and pioneering agreement, which includes SiriusXM licensing the Howard Stern archives in both audio and video through 2027," Jim Meyer, SiriusXM's Chief Executive Officer also said. "We look forward to working with Howard to offer the Howard Stern experience through new platforms. In 2006, when Howard launched his two uncensored satellite radio channels – Howard 100 and Howard 101 – he transformed how people listen to radio. We are thrilled that Howard is staying and expanding his relationship with SiriusXM to include video."