Saturday, February 19, 2005

SIRI and Insider Trading

Remember when Sirius stock rode up more than 15% after the deal with Howard stern was announced? Now it seems someone may have used guile to win in a very big way.
A self-described celebrity journalist who is a frequent guest on raunchy radio host Howard Stern's shows said on Saturday U.S. securities regulators had subpoenaed him in a probe of possible insider trading in Sirius stock. Chaunce Hayden said he had made an on-air prediction that Stern would leave broadcast radio for satellite radio and then coincidentally had been in the studio when the shock jock, a frequent target of federal radio regulators over decency issues, announced in October he would move to Sirius in 2006. Hayden said that when he himself had interviewed for a job at Sirius, he asked if the satellite radio system was going to hire Stern rivals Opie and Anthony, and the interviewer had told him, "We're holding out for Howard Stern." "With that information plus the hearsay and speculation," Hayden said, he made his cable TV prediction. Then several weeks later Howard made the announcement live on the air that he was doing it and it just so happens, and it was just a coincidence, I was the only journalist in the studio that day he made the announcement." On Oct. 6, Stern said he would leave his program when his contract expires in January 2006.
Of course no one won bigger than Stern himself-that lame-O took home 500 million for a five year gig.

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