The stock price of Twenty-First Century Fox Inc. (Nasdaq:FOX) proved resilient once its leaders chose to send highly rated Fox News host Bill O‚??Reilly away with a rich severance package reported to be as high as $25 million, after allegations of sexual harassment against him led advertisers to leave amid protests in social media and outside the company‚??s headquarters in New York.
A New York Times report that the company paid $13 million in recent years to settle claims of sexual harassment against him, combined with upward of 50 advertisers reportedly abandoning his show in recent weeks as the controversy swirled, likely spurred the Rupert Murdoch-led company to go in a different direction. The decision follows the departure former Chairman Roger Ailes last year, after he was accused of sexually harassing women at the company who included one-time television show host and former Miss America Gretchen Carlson.
A¬†stock chart shows that FOX only took a short-lived, minor hit to its stock price upon news on April 19 that O‚??Reilly would not be returning to the air after a vacation. News of O‚??Reilly‚??s departure from Fox News went public early that day but the company‚??s stock actually rose by the close of trading, after investors had time to assess the impact.
Click here to read the full article: “Fox Avoids Big Drop in Stock Price after Cutting Loose Bill O‚??Reilly as Advertisers Fled.”
Paul Dykewicz is the editorial director of Eagle Financial Publications, editor of StockInvestor.com and DividendInvestor, a columnist for Townhall and Townhall Finance, a commentator and the author of an inspirational book, ‚??Holy Smokes! Golden Guidance from Notre Dame‚??s Championship Chaplain,‚?Ě with a Foreword by legendary football coach Lou Holtz. Visit Paul‚??s website at www.holysmokesbook.com and follow him on Twitter @PaulDykewicz.