Apple vs. Microsoft in bidding war for Howard Stern?

invisibleSHIELD case for iPadHoward Stern’s five-year, $500 million contract with Sirius XM ends this December.

“Outside of retirement or re-signing with Sirius, there really aren’t a lot of options for Howard Stern,” Rick Aristotle Munarriz writes for The Motley Fool. “He can’t go back to terrestrial radio. Satellite radio has grown in stature over the past five years, while conventional radio has either been stagnant or regressed. There may be some shining stars in the industry, but they are small players. The giants that would be logical suitors — companies including Clear Channel and CBS — are unlikely to compete financially with Sirius XM. They also wouldn’t be able to offer Stern the regulatory freedom he sought in taking a chance with Sirius five years ago.”

“We live in a wired world, so Stern can always attempt to strike out on his own. If Stern can sway a million listeners to pay $10 a month for a rich, Web-served experience, he will top his current contract,” Munarriz writes. “The problem, of course, is that Stern risks plenty. He gambled on satellite radio in its infancy and won, but Internet radio as a premium service is virgin soil.”

“He can partner with a Web darling that will give him greater programming flexibility than even Sirius XM. Amazon.com’s Audible may be an interesting fit, but the only logical outlet would be Apple,” Munarriz writes. “Yes, Apple.”

“The iEmpire is shutting down the Lala streaming service it acquired just five months ago. Why would Apple buy a company to squash it? The best bet is that Apple will be incorporating Lala’s streaming technology into iTunes this summer,” Munarriz writes. “This could actually work for a juggernaut like Stern, and between Apple and Zune daddy Microsoft you have two of the richest companies on the planet.”

“A bidding war between CBS Radio and Sirius XM may very well be bumped by a bidding war between Apple and Microsoft,” Munarriz writes. “Is this likely? No. Is it possible? Absolutely.”

“However, my gut feeling is that Stern returns to Sirius XM on a scaled-back basis. Sirius XM doesn’t want to spend as much as it used to on Stern, and he’s unlikely to want to work as hard as he did when he first arrived,” Munarriz writes. “It’s the one logical ending to this saga; even if analysts, shareholders, and Stern fans won’t let Sirius XM CEO Mel Karmazin rest until they hear the ultimate answer on Stern’s Sirius show.”

Full article here.

40 Comments

  1. I’m embarrassed to be an apple head. I did not realize how ultra conservative and out-rite uptight you people are. Howard may just be the most skilled interviewer in history. Not to mention the fact that he drastically changed an entire medium forever. Guys like Opie & Anthony would be selling used cars if it wasn’t for Stern. Satellite radio, an entire industry exists today thanks to him. How about a little respect…

  2. Radio is dying. Satilite radio is changing and the model as we know it will also die.

    Those that want to listen to specific programs will purchase the subscription or rights to do so. The consumer will be in charge and not the advertisers. Plug in 3G or whatever will change what is in vehicles and offices in the future. Your car will not longer have a “radio” as we know it but an amp that will drive speakers. What you plug into it will be whatever you decide and what you listen to will also be what you decide.

    If Stern has an audience then he can sell his talent (or lack of it) to whomever wants to pay. If the advertisers want to pay then fine and he can send it out for free.

    So be it but many will not listen to something even if it’s not free. This will be easy to track and if the advertiser feel they are getting the bang for their buck, then the free market has decided.

  3. IF this is true, which I seriously doubt, Apple should get out of the way and let Metoosoft have this gasbag.

    Howard Stern = Vanilla Ice = Metoosoft = 1990’s

  4. I am not personally offended by Stern, and I actually enjoy the fact that he offends other people. Some of them need to be shaken up a bit.

    However, if you consider Apple’s actions with respect to iTunes content, it is clear that Stern does not offer the type of material that Apple is seeking. This Motley Fool article is, well, foolish.

  5. Let Microsoft have him.

    There is no part of Apple, from corporate to retail to products to end-use consumers, that says “Howard Stern”. On the other hand, there is nothing about Microsoft that says anything else.

  6. Stern and Microsoft. Neither has any class. A match made and heaven.

    (And yes, I have listened to Stern – both when he was on broadcast radio, and on cable TV. Or at least I tried. He is BORING!)

  7. “Stern and Microsoft. Neither has any class. A match made and heaven.”

    I agree 100%. Apple has more class in their shiny screens than Stern has in 100 years.

  8. Come on! iTunes has a problem with iBoobies and it censors swearing from rap music. How would Howard Stern even be allowed near the iTunes Store without turning into a sad family-friendly parody of himself?

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