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Fox News' stock dropped on Monday morning after the network announced it was parting ways with longtime host Tucker Carlson.
The network announced Carlson's departure on Monday, writing in a statement that the highly-watched conservative host's last show aired on Friday. The network wrote, "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."
Carlson, a conservative host who has become a popular commentator on the right, often faced criticism over controversial remarks on a range of topics including the January 6, 2021, riot at the United States Capitol building, his stance on the Russia-Ukraine war, and the 2020 presidential election. Still, he brought in substantial viewership among conservatives for Fox and has consistently ranked among the top-rated cable news shows.
His departure sparked a quick drop in Fox News' share price as investors reacted to the news.
According to MarketWatch, the price of a share in the network's stock went for about $33.52 at around 11:30 a.m. ET. By 11:55 a.m., that value dropped to $31.85, marking a near 5 percent decrease.
Its value had leveled out at around $32.50 per share by the early afternoon, though that is still a drop from days prior of just less than 4 percent.
Cristian Tiu, the chair of the Department of Finance and an associate professor of finance at the University at Buffalo, told Newsweek on Monday that it's unsurprising that Carlson's departure had an "immediate direct feedback" on the network amid uncertainty about its future without Carlson.
"A lot of the ratings on the network were geared to what he was doing," Tiu said. "Just directly, for whatever Fox is doing right now...that has an immediate direct impact. Just him going is bad news for Fox, and basically it decreases the stock price."
Tiu added that Carlson's exit also introduces risk as the network decides what to do in the future—such as whether they will bring on another right-wing "firebrand" to replace him. He said it is too early to know the long-term impact of Carlson's absence on the network.
"We don't know what Fox will do. We don't know how much of the audience they have now will stay with Fox or whether they will attract others," Tiu said. "That uncertainty also depresses the stock price."
Carlson's departure comes less than a week after Fox News settled a defamation lawsuit against Dominion Voting Systems, which accused some hosts of spreading untrue information about their voting machines in regards to the 2020 presidential election. Fox agreed to a $787.5 million settlement against the company, avoiding a trial as it faces other suits.
About the writer
Andrew Stanton is a Newsweek weekend reporter based in Maine. His role is reporting on U.S. politics and social issues. ... Read more