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Dow Jones: Sirius Overrated On Stern Hype?
Is the Howard Stern Publicity Tour (the most he's done since "Private Parts" a decade ago) hurting and not helping Sirius?
According to SmartMoney.com and the Dow Jones, "Howard Stern is over-hyped", said an analyst at Bank of America, who downgraded the company's rating for Sirius Satellite Radio from neutral to a sell. Analyst Jonathan Jacoby said the stock has gotten ahead of itself amidst all the hype surrounding Stern's move to Sirius, which occurs in five days. In a note, Jacoby said that field checks show that Sirius isn't poised for the "blowout" subscriber growth it expected this quarter in anticipation of Stern's move, something the current stock price discounts. Further, he adds that the Stern show's 18 percent ratings nosedive this summer shows that the impact of his arrival at Sirius remains unknown. Jacoby said the valuation gap between Sirius and XM, which is valued lower on Wall Street but has nearly twice as many subscribers, will right itself. B of A recommended that investors sell Sirius and buy XM.
Execs for Infinity Radio (today renamed "CBS Radio" once the January splitup of Viacom happens) - Stern's soon-to-be former home after this week -- must be wearing at least a small smile. Although they no doubt wish Stern well personally, one would expect their hopes that Stern won't do TOO well at Sirius...as they mentioned during a farewell visit to Stern's show this morning.
CBS Corporation CEO and President Les Moonves, who admitted to Stern that he was a fan, surprised everyone when he said he had purchased a Sirius radio so he could continue to listen to him. Joked Infinity (CBS Radio) Chairman and CEO Joel Hollander, who also said he bought a Sirius receiver, "We're rooting for you. Not that much, but we're rooting for you."
full story
posted by Unknown @ Wednesday, December 14, 2005,
