Dozens of advertisers pulled their spots from “The O’Reilly Factor” after the New York Times reported that Fox and the host had resolved sexual harassment allegations by paying his accusers $13 million. The report came just months after Fox News’ founder Roger Ailes resigned amid similar allegations.
How Valuable?
Fox Executive Chairman Rupert Murdoch and his sons, Chairman Lachlan Murdoch and Chief Executive Officer James Murdoch, convened on a call Wednesday morning where they decided O’Reilly’s fate, a person familiar with the situation said. The Murdochs were swayed by details that emerged during an internal investigation into the allegations by law firm Paul Weiss, the person said. O’Reilly issued a statement late Wednesday, saying, “It is tremendously disheartening that we part ways due to completely unfounded claims.”
Estimates of how valuable “The O’Reilly Factor” was vary, with Pivotal saying the show’s annual ad sales were about $200 million and Evercore putting them at half that or less. Fox hasn’t disclosed what it paid the host, though the New York Observer has reported his 2016 compensation package was $18 million.
By Jayant’s calculations, annual revenue and earnings growth will probably take a hit of less than half a percentage point as a result of O’Reilly’s leaving. He sees a decline of about 35 percent in ad revenue without O’Reilly, a similar level to the viewership gap between that show and the average Fox News primetime hour.
It’s unclear whether O’Reilly will be able to find a home with a competitor under the terms of his exit from Fox, but rival news organizations such as One America News Network and Newsmax said they’d be interested in talking with him about a new gig.
“He was the heart and soul of Fox News. He had unparalleled and unchallenged talent that he demonstrated over many years. I think he will remain a hot commodity for years to come,” said Newsmax CEO Chris Ruddy in an interview. “The problem that Bill O’Reilly is going to have is that there aren’t many conservative media outlets out there that carry as much heft.”
Ruddy cautioned that if he talked to O’Reilly about a job, he’d need to review the allegations because they are serious.
However difficult it might be for Fox to replace all the revenue O’Reilly generated, the uproar was a distraction for 21st Century Fox as it seeks regulatory clearance for its $14.6 billion acquisition of Sky Plc, the U.K.-based satellite-TV provider. That deal needs approval from the British regulator Ofcom, which will decide whether the takeover breaches British rules on media plurality and broadcasting standards, and whether Sky would continue to be a “fit and proper” holder of a broadcast license.
The U.S civil rights group Color of Change has asked Ofcom to investigate Fox’s corporate practices before approving the Sky purchase, alleging “rampant racial discrimination and sexual harassment” at the company.