Shock jock Howard Stern filed with U.S. regulators to register for sale up to 22.1 million shares of Sirius Satellite Radio, his bonus payment after the company ended 2006 with more than 6 million subscribers.
Sirius said in the filing with the U.S. Securities and Exchange Commission that the shares, valued at about $82.9 million, will be sold periodically by Stern's investment vehicle, One Twelve, and by Chipombe, a company whose sole member is Don Buchwald, Stern's agent.
In 2004, the two sides had based their estimate of 2006 subscribers on the average analysts' forecast that the company would reach 3.5 million.
Sirius reported last week that it ended 2006 with more than 6 million subscribers, at the middle of a forecast range made in December.
"The decision to bring Howard Stern to Sirius required a very significant commitment and we are very pleased that our investment has dramatically paid off," Sirius Chief Executive Mel Karmazin said in a statement.
Sirius said its agreement with Stern offers additional stock-based bonuses if it exceeds an ever-higher set of subscriber targets. The amount of excess growth needed to trigger a bonus increases over time and is substantially higher than 2 million, the company said.
Sirius said the bonus to Stern would not increase its diluted share count and that expenses related to the payment have been reflected in operating results throughout 2006.