Howard Stern May Have a Sirius Dilemma

Howard Stern hit the jackpot when he moved to satellite radio more than three years ago. He’s pocketing $80 million a year and has received Sirius Satellite Radio stock worth roughly $200 million for meeting subscriber growth targets spelled out in his five-year contract. But the shock jock may be in for a shock of his own when his deal expires in 2010. Heavy spending by Sirius and XM Satellite Radio, its chief rival and potential merger partner, on stars like Stern have come at a hefty price: While millions of radio enthusiasts have signed up in recent years, both Sirius and XM are deeply in debt, cash-strapped and suffering an ominous sales slowdown.

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