Months after renewing a contract with Howard Stern, Sirius XM Holdings (NASDAQ: SIRI) could lose the Barstool Sports brand.
What Happened: A two-year deal with Barstool Sports and SiriusXM ends around Jan. 19, Barstool Sports Founder Dave Portnoy said this week on the “Dave Portnoy Show With Eddie & Co."
“I think pretty much done," Portnoy said in reference to not renewing with SiriusXM. "I'll let Erika [Nardini] be the ultimate confirmation."
Portnoy said there is a 99.8% chance Barstool Sports is no longer part of SiriusXM going forward, saying the offer made by SiriusXM isn't worth considering: "Sirius treats us like they don't want us, to be honest."
Portnoy has no bad feelings towards SiriusXM in the end, noting they had a contract that was honored and this is just the nature of the business.
"What we feel our value is, they do not feel our value is," he said.
Why It’s Important: The Barstool Sports brand has a loyal following that could follow them to whatever is next.
"I think we’re going to try and do some sort of radio ourselves," Portnoy said.
In October, Portnoy said the loyal Barstool fans would follow them wherever they go. A rival company to SiriusXM could try and lure the Barstool team away to gain new subscribers. SiriusXM could have chose to not renew Barstool as they might get more value with something new rather than their existing subscribers they already have from the Barstool shows.
“They're hoping they don't get cancellations," Portnoy said.
What's Next: SiriusXM renewed its contract with Howard Stern for five additional years. Terms of the deal weren't disclosed, but it was reported the radio host could see a bump up to $120 million annually from the reported $80-$100 million annually prior.
SiriusXM ended the third quarter with 30.5 million self-paying subscribers and 34.4 million total subscribers. The company added 169,000 net self-paying subscribers.
The company is expected to report fourth-quarter earnings in February. The next two quarters could be telling if subscriber declines take place that the company made the wrong move not renewing the Barstool deal.
SIRI Price Action: Shares of SiriusXM are up 2% to $6.33 on Wednesday.
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