The "FARTMAN" of talk radio-HA!
Such talent, hope he gets 20 years in federal penitentiary.
Posted on 02/19/2005 2:04:50 AM PST by Liz
The SEC has launched an insider-trading probe of shock jock Howard Stern's deal to join Sirius Satellite Radio.
In the two weeks running up to the blockbuster announcement last October, Sirius stock soared nearly 40 percent........the feds want to determine if someone who knew the deal was coming started buying up stock in anticipation of shares skyrocketing when the news got out.
When Sirius made the surprise announcement, the stock jumped another 15 percent.
Yesterday, New York gossip journalist Chaunce Hayden, a frequent guest on the Stern show, received a subpoena from the SEC.
He was told he needs to appear before the SEC on Wednesday to answer questions about what he heard in Stern's studio around the time of the Oct. 6 announcement that Stern was leaving free radio for Sirius.
The subpoena is seeking information about "trading in securities of Sirius Satellite Radio," according to a copy obtained by The Post.
Stern, extremely frustrated by an ongoing battle with the FCC over his show's content, was lured to Sirius with a five-year, $500 million package for him and his team. It's unclear exactly what Stern's cut of that is, but he currently earns some $31 million a year, Forbes has estimated, and the Sirius deal is believed to top that.
The deal was hailed by some at the time as one of the most important in media history because it instantly legitimized the upstart satellite radio industry.
However, Stern has used his show to constantly plug Sirius, infuriating Infinity bosses and spurring speculation he may leave and join Sirius earlier than planned.
Sirius followed the Stern announcement in November by naming former Viacom honcho Mel Karmazin as its CEO.
Shares of Sirius initially shot up about 20 percent at the time of the Karmazin announcement.
(Excerpt) Read more at nypost.com ...
Don't get me wrong. Howard Stern will self destruct. There are far greater threats than him.
Even though I'm not a fan, it will be interesting to see how this goes. Isn't Stern one of the many who jumped on the 'bash Martha Stewart When She's Down" bandwagon?
And Martha got busted for something similar to insider trading, didn't she ? (sorry, I don't follow celebrity news).
How does all of that Martha Stewart bashing feel right about now, Howard? Does is still feel comfortable to you?
What goes around comes around.
You nailed it but good. Nice take.
Martha didn't get nailed for insider trading, but for lying to the FBI. Also, as CEO, she misrepresented the investigation to her stockholders.
Who was forced to sell their stock?
People who took a chance and invested in Sirus for the long haul, were not harmed.
Jail time? I think that's nuts.
Last I heard, they both work for Infinity.
The "FARTMAN" of talk radio-HA!
Such talent, hope he gets 20 years in federal penitentiary.
Oh, okay thank you for the clarification.
That's why the thought crossed my mind.
Viacom is the parent of Infinity Broadcasting, right? (I've never understood all of these arrangements.)
MWAAAHAAHAAHAAHAAHAAHAAHAAHAAHA!!!!!
I have heard about Stern wanting to move to satellite radio, but a 40% jump in share prices on news of his arrival is rather excessive. Considering that whenever I tuned him in here, he didn't play music and did little besides ramble on about various subjects, using sentences full of four-letter words, I can't see him making the Sirius network that much more attractive. In fact, if I was shopping for a satellite radio, news like this would tend to turn me to the competition, XM radio.
Wow! And then all of that is owned by Westinghouse, I believe.
I've always thought it interesting that Imus and crew have a side deal with Microsoft/National Broadcasting Corporation. Which, to me, means Imus is connected to both GE and Westinghouse.
I've listened to Howard for years,so I have heard all about his move to Sirius. From what he has said, he was very careful not to get into a Martha Stewartesque posistion.
Stern can start up a prison radio station. Maybe have Martha to give tips on making cell cosies.
Well then, long term investors wern't hurt, then I guess we should allow insider trading.
I'd like to see his contract.
No but if he did the crime he must do the time!
I just cleaned up something our puppy left that looked better than that, probably is more talented too.
"Who was forced to sell their stock?
People who took a chance and invested in Sirus for the long haul, were not harmed"
Trading on insider information harms the market itself. It is a crime taken VERY seriously by the powers that be. Also, thay are very good at spotting connections. Someone will likley swing in this case.
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