The value of Fox Corporation as a public company has sunk more than $800 million after the media company announced Monday that it is separation with star host Tucker Carlson, raising questions about the future of Fox News and the future of the conservative network’s prime-time programming.
Carlson, whose last show aired on Friday, April 21, is leaving Fox News even though he remains a top-rated host for the network, with 334,000 viewers in the coveted 25-54 demographic in the 20:00 slot. the week ended on April 20, according to AdWeek. It was more than double the audience of its competitors CNN and MSNBC in the same hour, and also represented a larger audience than other Fox News anchors such as Sean Hannity or Laura Ingraham.
Fox shares fell to a low of $29.27 on Monday, down 5.2%, representing a loss of more than $800 million in market value, before recovering slightly more late in the day Shares also fell slightly on Tuesday, but the stock regained ground on Wednesday, rising 28 cents, or nearly 1%, to $30.
Carlson’s abrupt exit comes less than a week after Fox hit $787.5 million settlement with Dominion Voting Systems, which had sued the company in a $1.6 billion defamation case over the network’s coverage of the 2020 presidential election.
In the short term, the financial impact on Fox may be minimal because advertisers tend to reserve their slots in advance, but “if the ratings really sink,” there could be a problem, said Joseph Bonner, senior analyst at Argus Research securities, on CBS MoneyWatch. .
He added: “Maybe in the medium to long term [there is] some financial impact depending on who takes Carlson’s place and their success, or lack thereof.”
Fox News said it will air “Fox News Tonight” Monday at 8 p.m. as an interim program until a new host is named.
The schedule change may be due to Fox News’ need to attract more mainstream advertisers, Huber Research analyst Doug Arthur noted in a research note. Advertising on Fox’s cable networks had been “weak/disappointing” despite its ratings dominance, he added.
“[A] Moving away from bigoted conspiracy content, less ‘My Pillow’ stuff, could start attracting big advertisers,” he wrote, referring to the company owned by Mike Lindell, the businessman who has promoted election conspiracies in the wake of the president Donald Trump’s loss in the 2020 election.
Range of answers
Carlson became a focal point in the Dominion case afterwardR The documents revealed disparaging text messages from him about former President Donald Trump, including one that read: “I hate him with a passion.”
The host’s comments about Fox management, which also came up in the Dominion case, played a big role in his departure from the network, the Washington Post reportedciting a family member familiar with Fox’s thinking.
In his last show on Friday, Carlson gave no indication that it would be his last appearance. Responses to his departure ranged from joy, with “The View” audience as it broke applauseto disappointment, with Eric Trump tweeting: “What’s wrong with Fox?”
Some social media users denounced Carlson’s departure, with others also urging viewers to contact their cable providers to complain. “Fox News Fired Tucker Carlson Because They Will Wake Up!!!” wrote one commenter.
The departure means Fox News is losing a major audience tie, several years after the network cut ties with Bill O’Reilly, one of its superstars.
Can Fox produce a new star?
O’Reilly left the network in 2017 after sexual harassment claims were filed against him, with Carlson taking his place at 8 p.m. But Carlson’s ratings are well below O’Reilly, which averaged 728,000 25-54 viewers in the first quarter of 2017. seconds in the Hollywood Reporter. By comparison, Carlson’s audience in this demographic during the first three months this year they averaged 443,000.
“While commentators may talk about the sky falling with the loss of a major star, Fox has done pretty well at producing new stars over time,” Bonner noted. “We have to think how much is about the person and how much is the platform.”
At the same time, Carlson faces off allegations from a former employee about the network’s “toxic” work environment. Abby Grossberg, who worked as head of booking on Carlson’s show, claimed in court filings last month that she endured an environment that “subjugates women based on vile sexist stereotypes, pigeonholes religious minorities, and disparages their traditions and shows little or no respect for them.” suffers from a mental illness.”
Grossberg also alleged that Fox’s legal team “coerced” her into providing misleading testimony in Dominion’s defamation case.
In a statement issued Monday, Grossberg called Carlson’s departure “a step toward accountability for the election lies and baseless conspiracy theories spread by Fox News, which I witnessed firsthand on the network, as well as for the abuse and harassment I suffered when I was in charge. booking and senior producer for Tucker Carlson Tonight.”
