ARN Media's stock plunge deepens after axing Kyle Sandilands and Jackie 'O'
ARN Media has faced a sharp decline in its market value since removing Kyle Sandilands and Jackie 'O' Henderson from air in February. The company's share price has dropped from over $0.35 to $0.285, pushing its market capitalisation below $100 million for the first time. Legal disputes and contract terminations have added to the financial strain. ARN Media's troubles began in January 2024 when it announced the termination of Sandilands' and Henderson's contracts. Both had signed decade-long deals worth $100 million each, but Sandilands was let go after just 14 months. Henderson's contract was also cut short last month.
Before these changes, ARN's market capitalisation had climbed steadily. From mid-2023 to late December 2023, its value rose from around AU$1.2 billion to AU$1.5 billion, driven by strong radio revenue in Australia. The company's fortunes reversed after the high-profile departures.
Sandilands has now lodged an $85 million compensation claim against ARN, demanding his contract be honoured in full. His legal team, led by Kevin Lynch of Johnson Winter Slattery, is handling the case. ARN disputes the claims and plans to defend the proceedings.
Meanwhile, ARN's newly appointed CEO, Michael Stephenson, is working to bring Henderson back. The company hopes to rehire her at a much lower rate for a solo show on KIIS FM. The fallout from the contract terminations has hit ARN hard. Its share price continues to slide, and legal battles loom. The company's efforts to negotiate Henderson's return could shape its future in the competitive radio market.
