KIIS network owner, former radio host settle for $13.5m
Updated ,first published
Talks between Jackie “O” Henderson and her former employers at KIIS FM have collapsed and the radio star is heading for a blockbuster trial in October, with the matter set to return to court on Thursday.
While former co-star Kyle Sandilands reached a multimillion-dollar deal with KIIS network owner ARN Media on Wednesday, Henderson and company have not been in contact for more than a month, according to two people familiar with the situation.
The parties had previously held talks about the possibility of Henderson hosting another show on the channel following his on-air crisis with Sandilands in February, but no formal deal was discussed and contacts through intermediaries ceased in mid-May.
The breakdown in communication raises the possibility that a high-profile hearing will not be held as planned in October; This will pit Henderson against ARN – including possible help for the radio network from former legal rival Sandilands.
ARN settled its battle with Sandilands on Wednesday, announcing it had reached a $12.09 million cash settlement with the controversial broadcaster; $3 million will be paid in July and the remainder will be paid in monthly installments until June 2029.
Desperate to get back on air, Sandilands is pursuing independent media opportunities that threaten to alienate listeners from the channel. As part of the agreement, ARN will provide the startup with $1.5 million worth of additional advertising services across its partner platforms over three years and receive 19.9 percent of its revenue. Sandilands has been banned from working with ARN’s direct competitors until March 2027.
This amount is much less than the $85 million Sandilands previously sought from the embattled radio network. He and Henderson were on contracts worth $200 million over ten years.
Settlement talks between Sandilands and the ARN progressed late last week. This imprint was a harbinger On Monday. A person familiar with the situation said there had been direct talks between ARN chief executive Hamish McLennan and Sandilands himself, including on Tuesday evening.
ARN CEO Michael Stephenson said the deal represented an opportunity for the company to clear the air and move forward.
“I think this is a good outcome for ARN and an excellent outcome for our shareholders. What this does for us is that it gives us complete clarity and clear space to move forward and implement our plan,” he said.
ARN’s shares rose nearly 24 percent to 26 cents per share on Wednesday, reflecting investor enthusiasm for the deal. Stephenson declined to comment on Henderson’s case, noting that the matter is ongoing.
Stephenson said the revenue-sharing arrangement regarding Sandilands’ new podcast would allow the network to recoup some of the costs of the deal, but he was not worried about the former star promoting her rival show on ARN.
“Obviously we will not be promoting Kyle’s podcast on KIIS,” he said.
ARN terminated Sandilands’ contract in mid-March after a two-week deadline had expired for the controversial broadcaster to make amends for “serious misconduct” towards Henderson following an on-air fight between the pair in February that left Sandilands in tears. Henderson took separate legal action against the company. These transactions were ongoing when ARN was launched, he said. Henderson’s agent declined to comment.
The heated exchange with Henderson was “consistent with the style, tone and nature of the performance and the robust character desired by her employer,” Sandilands’ lawyers wrote in legal documents that will launch the March court claim.
As a result, Sandilands argued that the termination was invalid because he had committed no serious misconduct or breach. His lawyers argued that if there was a breach, Henderson had no reasonable opportunity to “correct” it because his contract had already been terminated.
In late March Sandilands’ lawyers unsuccessfully argued for the trial to be expedited to get the controversial shock jock back on the air as quickly as possible.
The settlement agreement will allow Sandilands to publicly announce plans for a new online subscription show with the working title Kyle Sandilands Live. Plans for the new show, It was announced by this masthead on Mondayincludes a number of former staff Kyle and Jackie O’s Show and will be “uncensored”.
It will be marketed as a 6 a.m. breakfast item, according to a person familiar with the plans.
If the show is successful, ARN will receive some benefit thanks to the revenue sharing arrangement in its deal with Sandilands. These promotions are likely to be shown on ARN’s smaller digital broadcast platforms rather than Sandilands’ former home of KIIS FM.
Media lawyers Shaun Miller said the prospect of avoiding an unpredictable trial would likely bring relief to both parties.
“This would be a lawyer’s picnic and a media circus and would damage the reputations of both parties,” he said.
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John Buckley is the CBD columnist for The Sydney Morning Herald and The Age.Connect via email.
Kishor Napier-Raman is senior business writer for The Sydney Morning Herald and The Age. He previously worked as a CBD columnist and reporter in the federal parliament press gallery.Connect with: X or email.
Fiona Byrne is the CBD columnist for The Age and The Sydney Morning Herald.Connect via email.
