A settlement between Kyle Sandilands and ARN is expected to be announced tomorrow, with the stock exchange expected to be informed that the parties will conclude their current legal action.
Kyle will likely begin a podcast and possibly a live online show, but will not broadcast on a competitor radio station for an exclusion period.
It is expected that Kyle will receive about $15 million in the settlement terms, that include an advertising deal, well under the $80 odd million left on his previous contract with ARN, but more than the downside of being out of the publc eye and not having the chance to reinvent himself in another sector of the audio medium. Let alone the ongoing legal fees. He may also get to keep his golden microphone.
Sources close to the case have told radioinfo: “He’s a broadcaster and he just wants to get on with it.”
In recent weeks, some of Kyle’s team have left ARN and may become part of the next Kyle Sandilands Live venture.
Jackie O‘s court action is separate from the Kyle case.
Kyle is know to admire US broadcaster Howard Stern for his move to the satellite broadcaster Sirius some years ago, that removed him from the regulatory requirements of the American broadcast regulator FCC. Kyle’s style is also similar to leading podcaster Joe Rogan, who is known for his outspoken podcast interview format. Those broadcasters may well inspire Kyle in his next media moves.
The expected settlement will change the dynamic of the next few ratings results. KIIS will likely continue to fall this coming ratings period as the audience accepts the fact that Kyle will not be back, but the station will now have a chance to reset its programming earlier than waiting for the outcome of the court case, which was scheduled for October.
Unlike when Kyle and Jackie left 2DayFM for KIIS and immediately took their audience with them to the rival station, Kyle will not be heard on another radio station for a while, so the audience will have no rival station to go to and the KIIS audience may eventually stabilise. Or they may go to Kyle’s new podcast or streaming venture and leave breakfast radio.
At the end of trading today, June 16, ARN shares were down to just 21c.
UPDATE: ARN has just released a statement to the stock exchange confirming details of the settlement.
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Reporting & Analysis: Steve Ahern