Sirius Satellite Radio says it has reached a licensing agreement with Sony BMG, which, on the heels of similar deals with Universal Music Group and Warner Music Group, allays fears over Sirius’ portable S50 device. That unit allows users to store music, which had been a point of contention with major record labels.
The news of the recent agreements with the labels, coupled with the company’s announcement that it had hit the 4 million subscriber mark, have helped bump Sirius’ stock price higher. Shares closed at $5.11 on March 20, which was up 22 cents from the previous day. The company has added nearly 700,000 subscribers this year and predicts it will end the year with more than 6 million.
In addition, Sirius stock recently rose after the company announced a deal with Volkswagen that makes Sirius the automaker’s sole satellite radio provider through 2012.
Meanwhile, according to a story in the New York Post, Sirius jock Howard Stern is unhappy that former boss Les Moonves included details of Stern’s yearly salary in the 43-page lawsuit CBS filed recently against him.
According to the documents, Stern was first signed by the company in 1985 for $705,000. By 1996, he was making $39.1 million over five years with another $8.85 million in annual bonuses and stock options. When Stern’s contract was extended in 2001, “the base compensation increased to over $58.8 million over the five-year term.”