Fox’s bill for Roger Ailes settlements now at $45M
The parent company of Fox News Channel, 21st Century Fox, has paid $45 million in settlements related to sexual harassment allegations against former CEO Roger Ailes.
In its quarterly report filed Wednesday with the Securities & Exchange Commission, 21st Century Fox listed costs of about $45 million during the nine months before the quarter ended March 31, 2017, for “settlements of pending and potential litigations following ” Ailes’ July 2016 resignation and a sexual harassment case filed against him. That’s $10 million more than in its previous quarterly report.
Among those payments: a $20 million settlement in September 2016 of former Fox and
Friends co-host Gretchen Carl- son’s sexual harassment lawsuit she filed against Ailes.
The company, which is controlled by billionaire media mogul Rupert Murdoch and his sons, Lachlan Murdoch and James Murdoch, continues to seek to recover from a sexual harassment crisis that resulted in several high-profile departures.
Most recently came last week’s resignation of network co-head Bill Shine, who had been mentioned in several lawsuits filed against Fox News for allowing a workplace culture in which sexual harassment and racial discrimination could develop. Shine had taken over as co-president along with Jack Abernethy in August 2016, one month after Ailes stepped down in the wake of accusations of sexual harassment and discrimination.
Last month, popular host Bill O’Reilly was dismissed after an internal investigation into charges of sexual harassment.
But the Murdochs say Fox News Channel has powered through, remaining the No. 1 basic cable channel in total day and prime-time viewing for 61 consecutive quarters.
“Fox News Channel has delivered its highest-rated quarter ever, ratings strength we expect to continue,” Executive Chairman Lachlan Murdoch said in a conference call Wednesday with investment analysts.
Fox shares rose 2% Thursday after the company posted mixed third-quarter earnings results late Wednesday.
Net income of $799 million fell 5%, with adjusted earnings per share of 54 cents, compared to 44 cents last year.
Revenue rose 4.6% to $7.56 billion, short of forecasts. Analysts had expected net income of $883.75 million, according to those polled by S&P Global Market Intelligence, along with adjusted earnings per share of 48 cents and revenue of $7.63 billion.