ARN Media has torn up Kyle Sandilands' contract – so how much could it cost them?

This sets the stage for a major legal battle.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ARN Media Ltd (ASX: A1N) has terminated its contract with shock jock Kyle Sandilands, setting the company up for a legal battle worth tens of millions of dollars.

A gavel is placed on a stand on a desk with a legal representative wearing a suit in the background.

Image source: Getty Images

On-air feud

Sandilands was the co-host of The Kyle and Jackie O Show along with Jacqueline Henderson, however, the pair had a falling out during a broadcast on February 20.

ARN Media said earlier this month that Henderson later gave notice that she "cannot continue to work with Mr Kyle Sandilands."

At the time, ARN Media said it had terminated its agreement with Henderson, while offering her the possibility of another show on the network.

ARN also said on March 3 it had written to Sandilands, saying "that it considers that Mr Sandilands' behaviour during the show on 20 February 2026 is an act of serious misconduct which is in breach of ARN's services agreement with Quasar Media, under which Mr Sandilands presents the Kyle and Jackie O show''.

Sandilands was given 14 days "to remedy this breach".

ARN said today that it had now issued a notice of termination of contract to Sandilands and his company, Quasar Media, and as a result, The Kyle and Jackie O Show will no longer be presented.

In a statement quoted in The Guardian and other media, Mr Sandilands said he didn't accept the termination.

He said:

I don't accept it. My lawyers told them last week this would be invalid. And guess what? It is. ARN knew exactly what they were getting when they signed my deal. They've worked with me for over a decade. They knew how I work, they knew the show, and they were happy to pay for it – because I delivered. Number one ratings. Year after year. Hundreds of millions of dollars in revenue for their business. I held up my end. I always have.

The legal battle over the show could be worth north of $100 million, with both Sandilands and Henderson on separate $100 million contracts signed in 2024 and running for 10 years.

ARN also told the ASX earlier this week that the Australian Communications and Media Authority (ACMA) had imposed licence commissions on the broadcaster following an investigation into The Kyle and Jackie O Show.

The conditions, imposed for five years, included that the broadcaster must comply with the decency provisions of the Broadcasting Services Act and that the program should not broadcast content that was highly offensive or that contained strong and explicit sexual references.

ARN shares are down about 44% over the past 12 months and were trading 1.5% lower at 33.5 cents on Wednesday morning.

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Communication Shares

A couple makes silly chip moustache faces and take a selfie on their phone.
Communication Shares

How high can Telstra shares really climb from here?

Brokers don't expect a surge, but rather a slow grind.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Communication Shares

$8,000 invested in Telstra shares 1 month ago is now worth…

The telco has enjoyed a good share price rally over the past year.

Read more »

A woman in a red dress holding up a red graph.
Communication Shares

After a big acquisition what are Nine Entertainment shares worth?

The company has made a major foray into outdoor advertising.

Read more »

A man casually dressed looks to the side in a pensive, thoughtful manner with one hand under his chin, and holding a mobile phone in his other hand.
Communication Shares

Is Telstra stock a buy at $5.37 a share?

Telstra shares haven't been this high since 2017.

Read more »

Young couple standing next to a sold sign after buying a house.
Communication Shares

Are the glory days over for REA shares?

The key will be how quickly the property market bounces back.

Read more »

A kid and his grandad high five after a fun game of basketball.
52-Week Highs

Telstra just hit a 10-year high. Has this ASX income giant still got more to give?

Telstra’s breakout to a multi-year high is turning heads.

Read more »

A gavel is placed on a stand on a desk with a legal representative wearing a suit in the background.
Communication Shares

The Kyle and Jackie O saga continues, with a massive new legal claim filed

ARN Media has fielded its second massive legal claim in as many weeks.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Communication Shares

Forget Telstra shares! Buy this fast-rising ASX 200 telco stock instead

A top fund manager expects this surging ASX 200 telco stock could deliver more earnings upgrades.

Read more »