The Newscorp – Dominion Settlement

 The Newscorp – Dominion Settlement

 The real costs of the Fox Newscorp settlement with Dominion was not really $787.5 million.  It is most likely somewhat less than $500 million, after tax write-offs and insurance. 

 Robert Willens, a tax professor at the Columbia University School of Business, estimates that after the tax write-off, Fox will incur about three-fourths of the settlement amount, about $590 million.

 Also, insurance is likely to cover some of the settlement. Chad Milton, a partner at Media Risk Consultants, says that a large media company such as Fox could have anywhere between $100 million to $500 million in coverage, including media liability insurance and other types of insurance.

 It is evident that Rupert and Lachlan Murdoch and their minions reached a business, and not a political decision.  Hard-ass pro-Trumpers will condemn their decision, but they are not sitting in the Fox media executive seats.  There will be hand-wringing over Tucker and Dan Bongino and possibly others leaving, no matter what excuses Fox comes up with to explain their departures.

 A $400-500 million settlement is still a lot on money, but obviously is the result of a business decision, taken after a cost-benefits analysis, and in context of Newscorp’s world-wide earnings.  It also includes the proviso that Fox is not publicly admitting any wrong doing as part of the process.

 “Fox has said it doesn’t expect the settlement to affect its operations.”  Newscorp revenues were #10.39 billion, and net income was $760 million in 2022.

 Ray Gruszecki

April 26, 2023