After Tucker Carlson's departure, the value of Fox's stocks decreases.

24 Apr 2023

Fox's Stock Plummets Following Announcement of Tucker Carlson's Departure, A High-Ranking Audience Favorite

Last updated: April 24, 2023 at 4:35 in the afternoon, on MoneyWatch.

On Monday, Fox Corporation saw a decline in their share value following a brief announcement that they would no longer be working with their renowned host, Tucker Carlson. This news has sparked concerns about the direction of Fox News as well as the potential changes to their primary programming during peak hours aimed at a conservative audience.

Despite being one of the top-rated hosts for the network, Carlson has decided to leave Fox News, with his last show airing on April 21. According to AdWeek, during the week ending on April 20, Carlson's show attracted 334,000 viewers within the 25- to 54-year-old demographic for the 8 p.m. time slot. This was a considerably larger audience than his competitors at CNN and MSNBC received during the same hour, and even more sizable than the audience that fellow Fox News hosts Sean Hannity and Laura Ingraham drew.

Fox's stock fell by 3% at the end of Monday, following a drop of up to 5% earlier that day.

Carlson's sudden exit follows Fox's recent resolution with Dominion Voting Systems for a sum of $787.5 million. This was in response to Dominion's lawsuit against the network seeking $1.6 billion in damages for Fox's coverage of the 2020 presidential election.

Fox may not experience much financial damage in the short run, since ad slots are usually reserved ahead of time. However, if the ratings decline significantly, it could become problematic, as observed by Joseph Bonner, a senior securities analyst at Argus Research, who spoke to CBS MoneyWatch.

He said, "In the coming months or years, there might be some financial influence based on the person who replaces Carlson and their level of achievement or failure."

Fox News has announced that they will broadcast "Fox News Tonight" at 8pm on Monday as a temporary program until a new host is selected.

Carlson's role in the Dominion lawsuit gained attention when records exposed disdainful text messages he sent regarding former President Donald Trump. One of these messages stated, "I feel an intense hatred towards him."

According to an anonymous source, the Washington Post stated that the remarks made by the host regarding Fox management, which were also highlighted in the Dominion lawsuit, were a contributing factor to his departure from the network.

Carlson's last appearance on Friday didn't give any hint that it was his farewell show. People had different reactions upon hearing the news of his departure. Some were happy and even applauded, like the audience of "The View." Others were unhappy, with Eric Trump tweeting his dismay and questioning what was going on with Fox.

A few individuals on social media expressed their disapproval over Carlson departing, while some encouraged viewers to voice their grievances to their cable companies. "Fox News axed Tucker Carlson simply because they're becoming more socially aware!!!" a commenter exclaimed.

The exit of the person implies that Fox News is losing one of its top audience magnets. This comes a few years after the network terminated its relationship with one of its most popular personalities, Bill O'Reilly.

Is Fox capable of creating a new celebrity?

In 2017, allegations of sexual harassment were made against O'Reilly, causing him to leave the network. Carlson took over his position at the 8 p.m. hour, but his ratings have not been as high as O'Reilly's. During the first quarter of 2017, O'Reilly's show had an average of 728,000 viewers between the ages of 25 and 54. In comparison, Carlson's show had an average of 443,000 viewers in that same demographic during the first three months of this year.

According to Bonner, although some people may say that losing a big star is a huge loss, Fox has been successful in creating and promoting new stars. Bonner suggests that we should consider whether the person or the platform plays a bigger role in their success.

Simultaneously, Carlson is being accused by a past employee regarding the network's harmful work atmosphere. Abby Grossberg, who was previously the head of booking in Carlson's show, recently stated in legal documents that she had to deal with a climate that oppresses women through hateful gender biases, discriminates against religious minorities and undermines their practices, and displays little empathy towards individuals dealing with mental illness.

According to Grossberg, the legal team of Fox exerted "pressure" on her to give deceptive testimony during Dominion's defamation suit.

On Monday, Grossberg made a statement expressing that Carlson's departure is a move towards taking responsibility for the election misinformation and groundless conspiracy theories propagated by Fox News. I personally observed this happen while I worked within the network, and I also experienced mistreatment and harassment while in charge of booking and as a senior producer for Tucker Carlson Tonight.

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