Sirius XM’s stock surges after Bloomberg report that a contract renewal with Howard Stern is near

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Shares of Sirius XM Holdings Inc. shot up 7.2% in premarket trading Wednesday, after a Bloomberg report that the satellite radio company is nearing a contract renewal with shock jock Howard Stern. Citing people familiar with the matter, the new contract could raise his annual pay to about $120 million a year, Bloomberg reported. The current contract, which expires at the end of December, topped out at roughly $80 million to $100 million a year, the report said. Separately, the company said late Tuesday that it raised its quarterly dividend by 10%, about 1.464 cents a share from 1.331 cents a share. Based on Tuesday’s stock closing price of $5.56, the new annual dividend rate implies a dividend yield of 1.05%, compared with the implied yield for the S&P 500 of 1.69%, according to FactSet.
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