Howard Stern, the iconic morning show host, may be leaving Sirius XM Holdings after its four-year contract concludes at the end of the year. However, the news has been misinterpreted as a “firing” of the legendary host.
According to sources, Sirius XM will offer Stern a new deal worth significantly less than his usual annual payments of nine figures. The company believes it’s no longer worth investing in Stern due to declining growth and changing listener habits.
Despite this, Sirius XM remains profitable with $10-figure annual free cash flow. However, the biggest challenge lies in attracting new listeners, as the current audience has been dwindling over the years.
To stay relevant, Sirius XM is shifting its focus towards podcasting, partnering with popular podcasters like Alex Cooper and Rotten. This initiative aims to attract a younger demographic and revive growth.
In contrast, Stern’s migration to satellite radio was instrumental in leveling the playing field between rival platforms, helping Sirius XM gain a competitive edge. However, even with his current audience, Stern won’t be able to secure a new deal worth what he’s accustomed to.
Investors can still benefit from buying into Sirius XM now, given its low valuation and high dividend yield of 5.1%. Stern is unlikely to return to the platform at a significantly lower rate, making this an opportune time for investors to consider their options.
Note: The article has been simplified while retaining essential information, and the title accurately reflects the content.
Source: https://www.fool.com/investing/2025/08/12/can-sirius-xm-survive-without-howard-stern