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  • Forbes: Stern to Net $670M on Sirius

    01/27/2006 5:04:53 PM PST · by Kaslin · 55 replies · 2,028+ views
    NewsMax ^ | January 27, 2006 | Carl Limbacher
    Howard Stern will cost Sirius Satellite Radio significantly more than initially forecasted, according to Banc of America Securities analyst Jonathan Jacoby. Stern's actual compensation will be close to $670 million, not the $500 million previously estimated, Jacoby said. "To reach break-even on Stern, we estimate Sirius requires 2.4 million incremental subscriptions," Jacoby wrote in a recent report cited on Forbes.com. The previous break-even mark was approximately 1.5 million. An early 2006 surge in sales of Sirius hardware is now starting to fall off despite the continuation of price discounting, according to Jacoby, who reiterated a "sell" rating on Sirius.