Fox Corporation’s stock plunged by more than 5 percent on Monday after Fox News host Tucker Carlson’s surprise exit was announced, initially wiping out nearly $1 billion from its market value.
Combining its Class A and B shares, the company saw $900 million wiped off its market value and by late afternoon trading, its Class B shares were down 3.3 percent, which is equivalent to a loss of about $650 million of shareholder value.
Carlson had been Fox Network’s most popular individual host and his program, “Tucker Carlson Tonight,” was among the most popular across all of cable television, often bringing in more than 3 million viewers per episode.
No Word From Carlson, Fox
“FOX News Media and Tucker Carlson have agreed to part ways. We thank him for his service to the network as a host and prior to that as a contributor,” a news release from the news channel stated.The company went on to note that Carlson’s last program was aired on April 21 and that “an interim show helmed by rotating FOX News personalities” will begin immediately until a new host is named.
Prior to the surprise announcement, Carlson had signed off his show on Friday saying he would be back Monday, leaving many to speculate that he was not aware of the planned departure.
Neither Carlson nor Fox has publicly addressed his departure since it was announced.
Meanwhile, many avid Fox viewers have taken to social media to declare that they have canceled their subscriptions to the channel amid a widespread boycott.
Lawmakers weighed in on the surprise decision, with Rep. Marjorie Taylor Greene (R-Ga.), writing on Twitter, “Cable news is about to be taught a powerful lesson after Fox News caved to the woke mob and fired Tucker Carlson.
Fox Stock, Viewings Will ‘Take Time to Recover’
Elsewhere, Rep. Matt Gaetz (R-Fla.) wrote on Twitter: “I cannot overstate the importance that @TuckerCarlson had on public policy choices we made in the government. Millions of Americans, myself included, tuned in every night to hear him share unapologetic conservative values. We will continue to follow him wherever he goes next!”Investors and analysts also believe Carlson’s shock exit from the company will likely impact short-term ratings but could prompt more mainstream advertisers who previously snubbed the network to find it more attractive.
“It’s a huge deal,” said Matthew Tuttle, head of Tuttle Capital Management, an investment firm that is betting against Fox shares. “The 8 p.m. slot is important and they will lose viewers in that spot. They need to find another Carlson, that is going to be the problem. They need to pull a rabbit out of the hat.”
Elsewhere, KeyBanc Capital Markets analyst Brandon Nispel said that Fox News is in “rebuilding mode” and it will likely see viewings take a hit while its stock takes some time to recover from the initial loss.
“We wonder what Fox is going to tell advertisers. It’s likely that advertisers who were seeking that audience may have limited other options for conservative news viewership without skewing too conservative,” he said. However, Nispel acknowledged that Fox’s market valuation drop “seems fairly high.”
