Tucker Carlson, one of the highest rated US TV hosts, is leaving TV giant Fox News.
The announcement by the channel came just days after Fox News settled a defamation lawsuit from voting machine company Dominion over its coverage of the 2020 presidential election.
Dominion argued that its business was harmed by Fox spreading false claims its machines were rigged against Donald Trump. Carlson’s show, which aired in the coveted 20:00 to 21:00 EST slot, was cited repeatedly in court documents by Dominion’s attorneys in their claim some of its output was defamatory.
On Tuesday, Fox Corp reached a landmark settlement to pay Dominion up to $787.5 million to settle the case in what is reported as the largest publicly known defamation settlement in US history involving a media company.
While early reports suggest that the network will not be required to address the issue on-air as part of the agreement, it is clear that this settlement marks a significant milestone in a case that has been ongoing for months.
– Background
Dominion sued Fox News in 2021, saying the network defamed it when it broadcast baseless claims that its machines “rigged” the 2020 presidential election by flipping millions of votes for Trump to Joe Biden. It demanded $1.6 billion in damages.
The settlement which was announced just before the first court hearing brought to end the monthslong legal battle over whether the media company had defamed Dominion.
– What exactly does this mean for Fox money-wise?
For Fox News, a $787 million settlement by all means represents a substantial financial hit. The news channel is part of the Fox Corporation, a multi-string media behemoth owned and controlled by American media mogul, Rupert Murdock. The empire brought in nearly $14 billion in revenue across all its divisions in 2022, according to Esquire.
Of that figure, just over $6 billion came from its cable channels, with Fox News generating most of that revenue from “affiliate fees” paid by cable providers. Of this figure, Fox reported a net income of about $2.8 billion for 2022 after some significant operating expenses. This means the $787 million Fox has agreed to pay Dominion is around 28% of its cable news profits last year.
For the larger Fox Corporation, the outlook is less pleasing, however. The mothership had a net income of just over $1.2 billion in 2022. Meanwhile, the company’s co-chairman, Rupert Murdoch, and his family are worth about $17.5 billion through their stakes in Fox Corp, News Corp, and much else.
As of Thursday, Fox’s shares which was trading at $34 at the time the settlement was announced had slipped modestly, closing just 16 cents lower.
– High hit for Dominion
For Dominion, the settlement represents a significant victory. According to The New York Times, Dominion projected an annual revenue of $98 million for 2022 with far less earnings in previous years. Regardless, the settlement means the company just rolled in at least eight years of revenue in a day.
The settlement underscores the importance of responsible journalism in an age when misinformation and disinformation can spread rapidly. As Fox News noted in its press release, “this settlement reflects FOX’s continued commitment to the highest journalistic standards. We are hopeful that our decision to resolve this dispute with Dominion amicably, instead of the acrimony of a divisive trial, allows the country to move forward from these issues”
“We acknowledge the Court’s rulings finding certain claims about Dominion to be false,” the statement continued. However, reports suggest the network will not be required to address the issue on-air as part of the agreement.
The Dominion-Fox News settlement is a significant moment in a case that has captured the attention of many both within the United States and around the world. While the settlement represents a significant financial hit to Fox News, it marks a victory for Dominion and another step forward in curbing the spread of false information.
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