On the December 8 edition of Fox News' The O'Reilly Factor, host Bill O'Reilly offered a Factor jacket to radio “shock jock” Howard Stern. After Stern said, “I won't wear it, but I will give it to a crack whore” and handed it back, O'Reilly told him: “I'm not having this on some lesbian somewhere. It's not going to happen.”

O'Reilly's comment came during part two of his three-part interview with Stern. Throughout his December 8 television show, O'Reilly read teasers for the taped interview:

• “And part two of my interview with Howard Stern. He has some problems with The Factor, and he's sticking up for lesbians.”
• “And later, Howard Stern, a walking controversy. He talks about how lesbians have made him millions. Upcoming.”
• “Howard Stern has some problems with The Factor but no problems with lesbians. We'll discuss the issues with him.”
• “When we come back, part two of my interview with Howard Stern. He's got some problems with The Factor but no problems with lesbians. Don't miss this one. Right back with it.”

In the interview, O'Reilly brought up the lesbian “issue,” asking Stern if his show was “still going to be lesbians on parade and strippers and all that” following its move to Sirius Satellite Radio in January. After vowing, “As long as I'm breathing, there will be lesbians,” Stern criticized O'Reilly for selling Factor merchandise, saying, “It looks like you emptied out a junkyard and slapped your name on everything.” O'Reilly countered that “all the proceeds go to charity,” noting that he just wrote Habitat for Humanity “a big check.” O'Reilly then suggested: “You can join Habitat for Humanity ... and build houses, Howard Stern, for poor lesbians. I mean, this would be perfect.” O'Reilly then offered Stern the Factor jacket. When Stern declined it, O'Reilly told him, “You're not getting it back,” adding, “I'm not having this on some lesbian somewhere.”

O'Reilly introduced the segment by explaining that Stern had become “the highest paid entertainer in American history” by “saying whatever pops into his mind, no matter how offensive it is.” O'Reilly then clarified: “No, I have not copied that concept. Roll the tape.”

From the December 8 edition of Fox News' The O'Reilly Factor:

O'REILLY: And part two of my interview with Howard Stern. He has some problems with The Factor, and he's sticking up for lesbians.

[...]

O'REILLY: And later, Howard Stern, a walking controversy. He talks about how lesbians have made him millions. Upcoming.

[...]

O'REILLY: Plenty more ahead as The Factor moves along this evening. Howard Stern has some problems with The Factor but no problems with lesbians. We'll discuss the issues with him.

[...]

O'REILLY: When we come back, part two of my interview with Howard Stern. He's got some problems with The Factor but no problems with lesbians. Don't miss this one. Right back with it.

[...]

O'REILLY: Thanks for staying with us. I'm Bill O'Reilly. In the “Personal Story” segment tonight -- and this might not be for children -- part two of our interview with Howard Stern. As we told you last night, he's now the highest-paid entertainer in American history, and his success is based upon a very simple concept: saying whatever pops into his mind, no matter how offensive it is. No, I have not copied that concept. Roll the tape.

[...]

O'REILLY: Is it still going to be lesbians on parade and strippers and all that?

STERN: Bill, there will always be lesbians on this show. I make this vow to you. As long as I'm breathing, there will be lesbians. I will give the people lesbians, because there is nothing sexier in this world -- besides you -- there is nothing sexier than two women getting it on. Ad man, I'm going to do it. In fact, I'm going to take a lesbian dating game, and I'm going to blow it up into an hour show on my channel. You'll see the date.

O'REILLY: Does this cost extra? Or is that under the $12 [monthly subscription fee for Sirius Satellite Radio]?

STERN: That's all under the 12 bucks.

O'REILLY: OK.

STERN: Not as good as the Bill O'Reilly mug. How much is that?

O'REILLY: Oh, you want to get into that now?

STERN: Let's talk about that kazarai you're selling. It looks like you emptied out a junkyard and slapped your name on everything.

O'REILLY: OK, here's where we're going.

STERN: And you've got a briefcase, the Bill O'Reilly briefcase.

O'REILLY: Let me set this up --

STERN: I wouldn't be caught dead in the Bill O'Reilly -- no offense.

O'REILLY: No, of course no offense.

STERN: Who's walking around with a Bill O'Reilly briefcase?

O'REILLY: No, of course there's no offense --

STERN: Imagine I walked into a --

O'REILLY: You wouldn't offend me at all, would you? You would never do that.

STERN: Yes, I would.

O'REILLY: Oh, I'm stunned.

STERN: Sure, I would.

O'REILLY: I'm stunned. You didn't wish me to get cancer, did you, on your show?

STERN: Not yet.

O'REILLY: OK. Now listen, you go on your show, and you say, “O'Reilly's selling all these” -- what, tchotchkes? Is that what you said?

STERN: Tchotchkes. Garbage.

O'REILLY: Garbage. OK.

STERN: Welcome mats. Bill O'Reilly welcome mat.

O'REILLY: All right. All right, whatever. Now, you know that all the proceeds go to charity.

STERN: I don't believe that. What charity?

O'REILLY: You don't believe it?

STERN: What charity?

O'REILLY: OK. Habitat for Humanity, I just wrote them a big check.

STERN: What is Habitat for Humanity?

O'REILLY: That's when people, like you --

STERN: Me?

O'REILLY: You know, if you cared about other people --

STERN: Yes.

O'REILLY: -- would then build a house for poor people. Novel concept. In fact, you know what you could do?

STERN: And give 100 percent of the profits?

O'REILLY: Yes. Everything I get. You know what you can do, though?

STERN: But doesn't this appeal to your ego? Can't you -- you make a lot of money. Can't you donate money to charity? Can't Fox News --

O'REILLY: This is -- I do that anyway. This is extra money.

STERN: Why does Fox News -- listen --

O'REILLY: Are you filibustering now? Because I have a good idea for you. You can join --

STERN: Come outside with me right now. Let's --

O'REILLY: You can join Habitat for Humanity --

STERN: Yes.

O'REILLY: -- and build houses, Howard Stern, for poor lesbians. I mean, this would be perfect.

STERN: Now you're thinking.

O'REILLY: This would be perfect. All --

STERN: Now you're thinking like a degenerate.

O'REILLY: the money that I derive from BillOReilly.com from Factor gear goes to charity, to help kids and poor people. And you are mocking it.

STERN: I'll tell you why I mock it. I mock it because you have such an ego. For you to say --

O'REILLY: You're telling me I have an ego?

STERN: Yes. At least there's some things I don't slap my name on.

O'REILLY: What? What?

STERN: You have your name on jackets, mugs, pens, papers.

O'REILLY: It's all for charity.

STERN: Listen, you're a wealthy guy. Give money of your own to Habitat.

O'REILLY: I do that.

STERN: Give them -- let Fox News donate money to Habitat. You should take those welcome -- when I'm walking around with a billboard of the Bill O'Reilly Show.

O'REILLY: Do you want a Factor jacket, by the way?

STERN: Yes, give it to me for free.

O'REILLY: All right. Give me the Factor jacket.

STERN: Let me ask you a question --

O'REILLY: I'm only going to give you this “no spin” jacket if you wear it. Are you going to wear it?

STERN: If I wear it?

O'REILLY: Look, this is a beautiful, beautiful jacket.

STERN: It's not.

O'REILLY: It is, it's gorgeous.

STERN: Let me tell you why it's not. Can I be a fashion designer for a second?

O'REILLY: Look at the way you're dressed.

STERN: You see this? This grabs you around the middle. If a guy's got a gut, this is going to squeeze his fat.

O'REILLY: This is a terrific garment. Now are you going to wear it? I'll give it to you.

STERN: The “no spin” jacket?

O'REILLY: Yeah. With the flag, the American flag. You are American, correct?

STERN: I won't wear it, but I will give it to a crack whore.

O'REILLY: No, no. You're not getting it back.

STERN: Here, take it.

O'REILLY: I'm not having this on some lesbian somewhere. It's not going to happen.

STERN: But I'm proud of you. You're doing well.

O'REILLY: Thank you.