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CBS, Stern Settle Suit
by Josh Grossberg
May 26, 2006, 2:15 PM PT
The epic battle is over.
Howard Stern and his ex-bosses at CBS Radio have agreed to a settlement in the breach of contract suit filed against the shock jock back in February.
On Friday, Stern regained control of the master tapes from the last 20 years of his terrestrial radio show, after his new employer, Sirius Satellite Radio agreed to shell out $2 million for the recordings.
"As part of the settlement, CBS Radio will receive payments relating to the conveyance of its rights in the recordings of The Howard Stern Show," read a statement released by both sides. "Sirius, for its part, will make a total payment of $2 million related to this conveyance."
The remaining details of the settlement remained undisclosed.
Both sides confirmed that they had reached an agreement on Wednesday, but lips remained zipped on the deal until all parties signed on the appropriate dotted lines.
CBS sued the self-professed King of All Media for $200 million-plus three months ago, alleging that Stern and Sirius committed a litany of offenses before the DJ left his home of nearly two decades in December for the unregulated universe that is satellite radio.
Among the major transgressions listed in the 43-page complaint were breach of contract, fraud, unjust enrichment, misappropriation of radio time, unfair competition and interference with Stern's CBS contract.
A few hours before the suit was filed, Stern hastily called a preemptive press conference to defend himself of the charges and accused CBS honcho Les Moonves, his archenemy, of "bullying" him in a shakedown attempt.
CBS fired back, claiming Stern violated his contract by routinely touting Sirius on his colorful morning show before his exit, essentially giving the company free ad time. The broadcaster also accused Stern of fraudulently concealing his interest in hundreds of millions of dollars of Sirius stock while plugging Sirius on the air (last November, his bosses suspended him for one day for overtly hyping Sirius).
Fed up with constant battles with the Federal Communications Commission and CBS over decency regulations, including getting hit with record-breaking fines over his show's content, Stern signed a five-year $500 million contract with Sirius last year.
However, once the satellite provider reached the 3.3 million subscriber mark (fans pay $12.95 a month—or $142.45 a year—for the service), the radio host and his agent, Don Buchwald, received 34 million shares worth an additional $220 million, increasing the value of his deal well north of $600 million all without telling CBS.
Since his debut on Sirius in January, Stern is finally able to say whatever he wants, free of the oversight of the FCC and CBS Standards and Practices. Ironically however, Moonves and company may have the last laugh.
In recent months, Stern has complained on air that many fans of his once-mighty audience of 12 million have yet to plunk down the $12 monthly fee and follow him to his profanity-laced perch on satellite. Such talk prompted reports that Stern was thinking about a return to terrestrial radio, rumors which he has since flatly denied.
A representative for Sirius was unavailable for comment on the settlement.
CBS, Stern Settle Suit
by Josh Grossberg
May 26, 2006, 2:15 PM PT
The epic battle is over.
Howard Stern and his ex-bosses at CBS Radio have agreed to a settlement in the breach of contract suit filed against the shock jock back in February.
On Friday, Stern regained control of the master tapes from the last 20 years of his terrestrial radio show, after his new employer, Sirius Satellite Radio agreed to shell out $2 million for the recordings.
"As part of the settlement, CBS Radio will receive payments relating to the conveyance of its rights in the recordings of The Howard Stern Show," read a statement released by both sides. "Sirius, for its part, will make a total payment of $2 million related to this conveyance."
The remaining details of the settlement remained undisclosed.
Both sides confirmed that they had reached an agreement on Wednesday, but lips remained zipped on the deal until all parties signed on the appropriate dotted lines.
CBS sued the self-professed King of All Media for $200 million-plus three months ago, alleging that Stern and Sirius committed a litany of offenses before the DJ left his home of nearly two decades in December for the unregulated universe that is satellite radio.
Among the major transgressions listed in the 43-page complaint were breach of contract, fraud, unjust enrichment, misappropriation of radio time, unfair competition and interference with Stern's CBS contract.
A few hours before the suit was filed, Stern hastily called a preemptive press conference to defend himself of the charges and accused CBS honcho Les Moonves, his archenemy, of "bullying" him in a shakedown attempt.
CBS fired back, claiming Stern violated his contract by routinely touting Sirius on his colorful morning show before his exit, essentially giving the company free ad time. The broadcaster also accused Stern of fraudulently concealing his interest in hundreds of millions of dollars of Sirius stock while plugging Sirius on the air (last November, his bosses suspended him for one day for overtly hyping Sirius).
Fed up with constant battles with the Federal Communications Commission and CBS over decency regulations, including getting hit with record-breaking fines over his show's content, Stern signed a five-year $500 million contract with Sirius last year.
However, once the satellite provider reached the 3.3 million subscriber mark (fans pay $12.95 a month—or $142.45 a year—for the service), the radio host and his agent, Don Buchwald, received 34 million shares worth an additional $220 million, increasing the value of his deal well north of $600 million all without telling CBS.
Since his debut on Sirius in January, Stern is finally able to say whatever he wants, free of the oversight of the FCC and CBS Standards and Practices. Ironically however, Moonves and company may have the last laugh.
In recent months, Stern has complained on air that many fans of his once-mighty audience of 12 million have yet to plunk down the $12 monthly fee and follow him to his profanity-laced perch on satellite. Such talk prompted reports that Stern was thinking about a return to terrestrial radio, rumors which he has since flatly denied.
A representative for Sirius was unavailable for comment on the settlement.
