Sirius Pays Big for Howard Stern and GoPro Skyrockets
The satellite radio company’s stock closed up nearly 5% yesterday after news broke that it is close to completing a $120 million a year deal with Howard Stern. There were rumours that Stern might take his voice to Spotify after the music streaming service inked big deals with Bill Simmons and Joe Rogan, but it looks like Sirius will be keeping the show and it’s up to 2 million daily listeners.
However, while the broadcaster may be keeping Stern, another lucrative partner could be heading out the door soon. Barstool Sports founder Dave Portnoy tweeted that there is a 99.9% chance that they will leave the platform after negotiations broke down. So, while Stern’s big deal may be in the headlines, Sirius may be losing a very dedicated group of listeners.
GoPro’s stock climbed more than 30% yesterday after the company reported that it has more than 500,000 subscribers, up from about 400,000 in August. It also raised its expectations for the year-end total above the initially projected 600,000.
Subscriptions have been a growing focus for GoPro, because they present steadier revenue than camera sales and have a higher profit margin. However, while many investors are very excited about the huge rise in subscriptions, it is important to note many of these are coming at a discount because of the pandemic and others are totally free with the purchase of a camera. Pay attention to the retention rate of these subscribers to understand how GoPro should really be valued.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.