FOXA stock faces a murky future amid a messy legal environment
Once one of the leading voices of conservative media programming, Tucker Carlson unceremoniously parted ways with Fox News, which operates under the Fox Corp (NASDAQ:FOXA) umbrella.
The shocking development arrived less than one week after Fox settled a $787.5 million defamation lawsuit, according to Reuters. On Monday, FOXA stock closed down 2.91% against the prior session.
Headlining his prime-time show “Tucker Carlson Tonight,” the firebrand disseminated various conservative talking points via a distinctively sarcastic and sometimes irreverent tone.
Simultaneously outraging liberal viewers while resonating with his core right-wing audience, Carlson pushed his show to become the highest-rated cable news program in the key 25-to-54 age cohort.
Nevertheless, the Los Angeles Times pointed out that Carlson’s reign did not operate without controversy and potential liability to Fox Corp. Fundamentally, the Times mentioned that Carlson attracted heat for the network for provocative views on immigration and race, thus alienating some advertisers.
As the news agency pointed out, Carlson’s departure was not related to Fox News’ settlement with Dominion Voting Systems. In that case, Dominion accused Fox of knowingly spreading misinformation about the 2020 election.
However, inside sources told the Times that a discrimination lawsuit filed by former Tonight producer Abby Grossberg contributed to the ouster.
“Tucker Carlson’s departure from Fox News is, in part, an admission of the systemic lying, bullying, and conspiracy-mongering claimed by our client, former top producer, Abby Grossberg,” said in part Tanvir Rahman, one of Grossberg’s attorneys.
Moving forward, FOXA stock faces significant questions about the viability of its underlying news network. Over the years, Fox News successfully beat out rivals CNN and MSNBC in the ratings war despite rotating through multiple on-air personalities.
However, even with Carlson’s immense popularity, he could not usurp the title of owning the network’s highest ratings, which belongs to Bill O’Reilly.
O’Reilly left in similarly shocking terms in 2017 when Fox News forced him out due to a series of sexual harassment claims against the journalism veteran.
According to the latest options flow data, sentiment turned slightly negative for FOXA stock. Overall, though, the put/call ratio for Fox Corp in the derivatives market sits at 0.36. Per Fintel, since puts generally represent bearish bets, put/call ratios below 1 indicate bullish sentiment.
Notably, FOXA stock doesn’t exclusively hold the glare of public scorn. On the same day, CNN parted ways with star anchor Don Lemon. Interestingly, the termination was also unceremonious, arriving with no explanation and leaving the media industry astonished.
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