From The Business Sheet: Who says you can’t make money in the radio business?
NYT: Striking a deal estimated to be worth $400 million through 2016, the conservative talk radio host Rush Limbaugh has renewed his contract with Clear Channel Communications and its syndication subsidiary Premiere Radio Networks.
The contract renewal was announced Wednesday by the companies, and the financial details were provided by Mr. Limbaugh in an interview with The New York Times Magazine for an article to be published on Sunday. In the interview, Mr. Limbaugh said the new contract would pay him about $38 million a year for eight years. He also said he would receive a $100 million signing bonus.
The deal, which comes a month shy of the 20th anniversary of “The Rush Limbaugh Show,” reiterates Mr. Limbaugh’s position as the nation’s leading purveyor of political talk radio. His new contract is believed to be the most expensive in radio since 2004, when Sirius Satellite Radio paid Howard Stern $100 million a year for five years. That deal, however, also covered the staff, production and studio costs for Mr. Stern’s show.
Plus, Stern’s deal was for desperate satellite radio, not the old-fashioned, terrestrial kind.
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