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Yahoo
6 hours ago
- Business
- Yahoo
Can Sirius XM Survive Without Howard Stern?
Key Points The Sun is reporting that Sirius XM will make an offer to extend its contract with Howard Stern, but not at a rate that he's likely to accept. The media giant has been positioning itself to reach a new audience, lining up podcasts and on-air talent that resonate with younger listeners. Generating gobs of free cash flow, Sirius XM will be fine. Stern will be fine, too, no matter what his plans are for 2026 and beyond. 10 stocks we like better than Sirius XM › The inevitable appears to be happening. Howard Stern -- the controversial and iconic morning show host that put Sirius XM Holdings (NASDAQ: SIRI) on the map two decades ago -- could be moving on from satellite radio. Sources told The Sun last week that Sirius XM would be canceling the show after its fourth five-year contract concludes at the end of this year. A lot of stories since last week's revelation have been playing this up as the "firing" of the radio legend that you either love or hate. It's not technically true. The Sun's source is saying that Sirius XM will make an offer, but that it will be well below the annual nine figures that Stern's camp has received in the past. "Sirius and Stern are never going to meet on the money he is going to want," the unnamed source says. "It's no longer worth the investment." This is also the big question for the market: Is Sirius XM itself no longer worth the investment? The stock has fallen both in price and in favor. Let's take a closer look at where the meandering media monopoly goes from here. Two decades of decadence Disruptors get disrupted. Sirius XM was a media stock darling for growth investors more than a decade ago, but these days it's attracting value investors with its low valuation and chunky payouts. Organic revenue growth hasn't shifted out of a single-digit gear since 2014, and this will be the third consecutive year of negative top-line growth. Stern's migration from terrestrial radio to Sirius in 2006 was huge for the nascent platform. Sirius had just 3.3 million subscribers. Larger rival XM was beaming audio content to its 6 million accounts. Stern's arrival leveled the playing field between the two players, and a couple of years later it was Sirius in the driver's seat, executing a merger of equals. This was before the smartphone and connected car gave nearly everyone behind the wheel access to a world of apps that could play seamlessly through their car stereos. However, even with its audience contracting, Sirius XM entertains more than triple the listeners that the two players combined were reaching before Stern made his move. Interrupting the fadeout Sirius XM remains profitable. It's still cranking out 10-figure annual free cash flow. If this is the end of Stern on the platform -- and that was always a possibility, even if Sirius XM were willing to pay up for show -- it doesn't mean the end for satellite radio. The biggest problem at Sirius XM these days isn't keeping listeners around. The monthly churn rate of 1.5% continues to hover around the company's historical average. The real trick is finding new listeners. The funnel of young drivers hopping on free trials of the service has been dry for years. The connected car is a factor, but so is a changing workplace that no longer revolves around long commutes in a world of working from home. And the current appeal of Stern to new listeners is different from 20 years ago. It's not Stern's fault. Sirius XM is a walled garden: If you're not a subscriber, you don't have access. Stern has tried to make himself relevant outside his satellite radio fan base. He was a host on America's Got Talent for a couple of years. However, that's not the kind of gig that will motivate someone to sign up for a premium in-car and streaming service. Another revolution that has grabbed the ears of listeners over the past 20 years is podcasting. Even if you're in your car, you're going to spend less time listening to radio because now you can stream your favorite podcast if you're not in the mood for a music streaming app. Sirius XM has been making moves on that front, lining up popular podcasters including Alex Cooper, Rotten, and Smartless. This wasn't much of an initiative the last time Stern renewed with Sirius XM, but it is a priority now -- especially with the need for the platform to skew younger if it wants a shot at returning to growth. Stern will be fine. Sirius XM will be fine. Investors -- while they wait out the process -- will be fine. The stock is now trading for less than 7 times next year's projected earnings with a 5.1% dividend yield. Stern isn't likely to come back to Sirius XM on the cheap, but investors can do so right now. Should you buy stock in Sirius XM right now? Before you buy stock in Sirius XM, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Sirius XM wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 11, 2025 Rick Munarriz has positions in Sirius XM. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 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Yahoo
5 days ago
- Business
- Yahoo
Warren Buffett Buys Stock Of Company With $500 Million Howard Stern Decision To Make
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Legendary investor Warren Buffett is likely different from self-proclaimed "King of All Media" shock jock Howard Stern in many ways. The unlikely duo do share a common connection in Sirius XM Holdings Inc (NASDAQ:SIRI), a stock Buffett owns and Stern could soon have an adverse financial impact SIRI stock is trading lower today. Check the latest price here. What Happened: Stern has been a staple on the Sirius XM satellite radio networks for more than a decade, with his debut dating back to 2006. Through several contract renewals, Stern and Sirius XM now find themselves in a tough position the sometimes controversial shock jock's five year contract worth $500 million set to expire at the end of 2025. Trending: The same firms that backed Uber, Venmo and eBay are investing in this pre-IPO company disrupting a $1.8T market — Several outlets, including the New York Post, say Sirius XM is ready to move on from Stern, who may also be ready to move on to do his own thing or to retire. The timing of Stern's potential exit comes as Buffett has been actively adding Sirius XM shares to the Berkshire Hathaway Inc (NYSE:BRK)(NYSE:BRK) investment portfolio. Buffett added shares in the first quarter and reportedly added more shares in the second quarter, although the official 13F filing has yet to be released. According to CNBC, Berkshire Hathaway owns 119,776,692 SIRI shares worth $2.5 billion. The position is the 18th largest stock holding for Buffett's conglomerate at 0.9% of assets. Berkshire Hathaway owns around 35% of Sirius XM and the position may have increased in the second It's Important: Without Stern on Sirius XM, the company could need to add new talent or look in a new direction to maintain and bring in new subscribers. A report in the Hollywood Reporter previously said Sirius XM planned on keeping Stern for as long as possible. A Credit Suisse report cited that 15% of Stern listeners would cancel if he left, which at the time meant around 2.7 million subscribers. There are around 33 million Sirius XM subscribers today. While Stern once brought in around 20 million daily listeners, he now brings in around 125,000, according to the New York Post. Sirius XM's recent second-quarter results showed declining revenue of $2.14 billion, with both subscription and advertising revenue declining on a year-over-year basis. An exit by Stern could put some short-term pressure on the stock as investors and analysts look to what could come next for the company. A further drop in the share price could see Buffett buy more shares up recognizing the value of a subscription business that brings in strong recurring revenue. Read Next: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Photos: Shutterstock This article Warren Buffett Buys Stock Of Company With $500 Million Howard Stern Decision To Make originally appeared on Sign in to access your portfolio
National Post
6 days ago
- Entertainment
- National Post
The Howard Stern Show, a radio fixture since the 1980s, is said to be ending soon
The Howard Stern Show, which has been on the air now for more than 40 years, first on terrestrial radio and since 2005 on SiriusXM satellite radio, is said to be on the verge of ending. Article content Reports in Britain's tabloid The Sun and elsewhere say that the host's latest five-year contract expires in the fall, but that it won't be renewed. Article content 'Stern's contract is up in the fall and while Sirius is planning to make him an offer, they don't intend for him to take it,' an unnamed insider told the paper. 'Sirius and Stern are never going to meet on the money he is going to want. It's no longer worth the investment.' Article content Article content The insider added that Sirius may strike a deal for Stern's library of content. 'But as far as him coming back to doing the show, there's no way they can keep paying his salary.' Article content Article content 'If Sirius isn't going to give Stern a good offer, I don't think it would have anything to do with his ratings,' the source said. 'It's more likely everything to do with the political climate.' Article content The source added: 'After you saw what happened with Stephen Colbert, it's like they just can't afford to keep him going.' Article content The comparison is an apt one. Colbert, host of The Late Show with Stephen Colbert, was told last month that the show would end in May 2026. It was a move that many — not least Donald Trump himself — suggested was influenced by Colbert's criticism of the now U.S. president over the years. Article content Similarly, Stern has in recent years become openly critical of Trump. In 2020 he called on Trump to resign from his first term as president for his response to the COVID-19 pandemic. When Trump's son Donald Trump Jr. mocked him, he sarcastically referred to the the younger Trump as a 'wit' and a 'genius.' Article content Article content And in 2023, Trump posted on social media that 'The real Howard Stern is a weak, pathetic, and disloyal guy, who lost his friends and MUCH of his audience.' He added: 'I did his show many times in the good old days, and then he went Woke, and nobody cares about him any longer.' Article content Article content Stern's radio persona has evolved over the decades. Originally known as a 'shock jock' broadcaster — his move to SiriusXM was in part a way to get away from the censorship regulations of terrestrial radio — he gradually became a more serious and politically savvy interviewer. Article content Guests on his show have included U.S. President Joe Biden, who gave his first on-air interview while in office to Stern in April 2024, and U.S. Vice-President Kamala Harris, who spoke to him last October, just weeks before the nation went to the polls. Article content Stern, 71, got his start on radio in the late 1970s, with The Howard Stern Show beginning in 1981 on WWDC, a radio station near Washington, D.C. It moved to WNBC in New York the following year, and in 1985 landed at WXRK, where it stayed until its move to SiriusXM in 2005.
Yahoo
7 days ago
- Entertainment
- Yahoo
Why Fans Think The Howard Stern Show Is Getting Canceled
For over two decades, The Howard Stern Show has been a staple of satellite radio, entertaining millions of listeners with its unfiltered humor and celebrity interviews. But now, rumors are that Stern's long-running SiriusXM program may be getting canceled. Is Howard Stern's show on SiriusXM getting canceled? According to insiders who spoke to The U.S. Sun, Howard Stern's contract with SiriusXM is set to expire this fall, and the jock may not return for another term. Sources claim that while SiriusXM plans to make an offer, they don't expect Stern to accept it due to financial disagreements. 'Sirius and Stern are never going to meet on the money he is going to want. It's no longer worth the investment,' an insider revealed. Seemingly, it's not just finances at play. According to the same outlet, Stern's outspoken political views, especially his consistent criticism of Donald Trump, could be another factor affecting renewal talks. 'If Sirius isn't going to give Stern a good offer, I don't think it would have anything to do with his ratings,' said one source. 'It's more likely everything to do with the political climate,' they added. This theory got its basis after Stern's 2024 interview with then-Vice President Kamala Harris, which drew criticism from conservative circles. His blunt commentary on Trump recently resurfaced in viral clips. Even if Howard Stern's show on SiriusXM gets canceled, discussions are reportedly underway to preserve his extensive audio library on SiriusXM. A possible licensing deal may keep his past shows available for streaming, offering fans a slice of nostalgia even if no new episodes come. But the recent contract uncertainty has reportedly blindsided his staff of nearly 100 employees. With Stern taking his usual summer break, some wonder if he'll return at all. 'He is off in the summer, but this year has been saying 'maybe I should retire,'' a Daily Mail insider added. For now, neither SiriusXM nor Howard Stern has officially confirmed whether the show is getting canceled or not. The post Why Fans Think The Howard Stern Show Is Getting Canceled appeared first on - Movie Trailers, TV & Streaming News, and More. Solve the daily Crossword
Globe and Mail
04-08-2025
- Business
- Globe and Mail
Should You Buy Sirius XM Stock After Earnings?
Key Points Sirius XM's self-pay subscriber base shrank, leading to a revenue decline in Q2. This business generates lots of free cash flow, which should get a boost as capital expenditures come down. The stock is cheap, leading to a high dividend yield that income investors might find appealing. 10 stocks we like better than Sirius XM › Sirius XM (NASDAQ: SIRI) has received a lot of attention among the investment community. That's because Warren Buffett-led Berkshire Hathaway is a large shareholder, owning 35.4% of the satellite radio operator. Nonetheless, this stock has tanked 64% just in the past five years (as of July 31). Sirius XM just gave investors a fresh financial update. Given that the share price fell 8% the day the news was reported, the market clearly isn't happy with the numbers. Maybe there's an opportunity here for contrarian investors. Should you buy Sirius XM stock after earnings? Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Growth is hard to come by During the second quarter (ended June 30), Sirius XM's revenue dipped 2% from Q2 2024 to $2.1 billion. That was driven by a declining user base. As of June 30, there were 32.8 million paid Sirius XM subscribers, down by 460,000 over the past year. For what it's worth, Sirius XM doesn't face direct competition from any other satellite radio providers, as this is the only one that's legally allowed in the U.S. And to its benefit, the company generated 76.2% of its revenue from subscriptions in Q2, compared to a 20.2% share from advertising. This is advantageous because the sales coming from subscriptions are recurring in nature and likely more durable, whereas ad revenue can exhibit cyclicality that's influenced by macro forces. There is no denying that Sirius XM will have a hard time registering growth going forward. Consensus analyst estimates call for revenue to decline at a 0.7% annualized rate between 2024 and 2027. The key factor that has had a huge negative impact on the company is the rise of internet-enabled streaming services. Apple, Spotify, and Alphabet 's YouTube all give consumers compelling options for audio entertainment. Free cash flow remains robust Even though the company will undoubtedly struggle to grow its subscriber base and revenue going forward, Sirius XM doesn't have any issue when it comes to profitability. Although diluted earnings per share did drop 23% in Q2, the business had a net profit margin of 9.6% for the quarter. Management is focused on cost-cutting efforts. The goal is to get to $200 million in annual run-rate expense reductions. That could help with the bottom line. Sirius XM generated $402 million in free cash flow (FCF) during the second quarter, up 27%. Capital expenditures will continue decreasing in the years ahead. So, management's outlook has FCF totaling $1.5 billion in 2027. That would represent a 30.4% gain from the forecast $1.15 billion for this year. The leadership team has allocated this excess cash to the benefit of investors. Sirius XM repurchased $45 million worth of shares in Q2. Compared to the same period last year, the diluted outstanding share count has shrunk by a notable 5.6%. Appealing to dividend investors Another key part of Sirius XM's capital allocation plan is to pay a dividend, which totaled $92 million in Q2. Because the stock's valuation is dirt cheap, at a price-to-earnings (P/E) ratio of 8.1, the dividend yield sits at a hefty 5.11%. Investors can find comfort knowing that legendary investor Warren Buffett is a big shareholder in this company. He knows how to pick winning investments, so maybe the Oracle of Omaha sees something in Sirius XM. However, I think individual investors are better off avoiding this stock. Yes, the business is consistently profitable. The low P/E ratio is compelling, and the dividend yield can provide a nice income stream. But with there being intense competition from powerful streaming services, Sirius XM is facing a headwind when it comes to driving any growth. It wouldn't be surprising to see the company shrink over time. Should you invest $1,000 in Sirius XM right now? Before you buy stock in Sirius XM, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sirius XM wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025
