The Fox Corporation (NASDAQ: FOX) stock price has been under pressure as investors come to terms with the abrupt firing of Tucker Carlson. The shares plunged to a low of $29.12, the lowest level since January.
Tucker Carlson’s exit impact on Fox
It is still unclear why Fox decided to fire the most popular person in cable news. According to the WSJ, the company decided to fire him for delivering incendiary remarks about colleagues.
Megyn Kelly, a former Fox News host, has hypothesized that the decision was because of Carlson’s pro-Trump stance. With Murdoch’s empire leaning towards Ron Desantis, Tucker Carlson was seen as more extreme. The other theory are that Tucker was risky for Fox as it faces numerous lawsuits.
The impact of Turker’s exit on revenue will be negligible since he brought no meaningful ad revenue. Also, some national brands could now come back to the network. Besides, CNN still generates huge sums of ad revenue despite its low ratings. Still, the exit could remove Fox leverage as it negotiates with cable carriers in the next two years.
In terms of ratings, Fox will certainly lose as evidenced by the latest numbers. Data shows that Fox News Tonight attracted just 1.7 million viewers, 47% below that of Tucker Carlson.
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