A New York state court clerk said on Wednesday that CBS Radio and Howard Stern had reached an agreement on the breach of contract lawsuit, both sides saying that the agreement has yet to be signed.
The hearing which was scheduled for Wednesday was cancelled because of the agreed upon settlement.
Representatives of both parties said that when the agreement is signed they will both make a statement.
CBS Radio sued Stern, One Twelve Inc. (his company), agent Don Buchwald and Sirius Satellite Radio Inc. (SIRI) in February, saying that Stern wrongly used his final year at CBS Radio to promote his gig at Sirius, after he had signed his five-year deal for $500 million in October of 2004.
Two weeks ago at a hearing a CBS lawyer let the court know that they were close to settling. The judge postponed the scheduled hearing to give time to work out the settlement.
CBS Corp.'s stock closed up 55 cents, or 2.2 percent, at $25.41.
Sirius shares dropped 22 cents to $3.68 on the Nasdaq, but then rose 4.89 percent, or 18 cents, to $3.86 in after-hours trading.
Sirius said that it still holds to its 2006 forecast for 6.2 million subscribers by year-end, on the same day that its main competitor XM Satellite Radio Holdings Inc. (XMSR) dropped its subscriber forecast.
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