Kyle got a $13.6 million settlement. Jackie O is headed for court

Talks between Jackie “O” Henderson and her former employers at KIIS FM have broken down, leaving the radio star headed toward a blockbuster October trial, with the matter due back in court for a hearing on Thursday.

While her former co-star Kyle Sandilands reached a multimillion-dollar settlement with KIIS network owner ARN Media on Wednesday, Henderson and the company have not made contact in over a month, according to two people familiar with the situation.

The parties had previously held discussions over the possibility of Henderson hosting another show on the network following her on-air bust-up with Sandilands in February, but there have been no formal settlement talks and contact via intermediaries ceased in mid-May.

The breakdown in communication raises the prospect of a high-profile trial set to go ahead as scheduled in October, which would pit Henderson against ARN – with possible assistance for the radio network from its erstwhile legal opponent Sandilands.

ARN resolved its battle with Sandilands on Wednesday, when it announced it had reached a $12.09 million cash settlement with the controversial broadcaster, with $3 million payable in July and the balance in monthly instalments until June 2029.

Sandilands, who is desperate to return to the airwaves, is chasing independent media opportunities that threaten to drag listeners away from the network. As part of the settlement, ARN will provide his new venture with an additional $1.5 million worth of advertising services on its partner platforms over three years, while receiving 19.9 per cent of any revenue it generates. Sandilands is barred from working with ARN’s direct competitors until March 2027.

That amount is far less than the $85 million Sandilands previously sought from the embattled radio network. He and Henderson had been employed on contracts worth $200 million over a decade.

The settlement negotiations between Sandilands and ARN advanced late last week, as this masthead foreshadowed on Monday. They involved direct discussions between ARN chairman Hamish McLennan and Sandilands himself, including well into Tuesday evening, said one person familiar with the situation.

ARN chief executive Michael Stephenson said that the settlement represented an opportunity for the company to clear the air and move forward.

“I think it’s a good outcome for ARN, and it’s an excellent outcome for our shareholders. What this does is give us complete clarity and clean space to go forward and execute our plan,” he said.

ARN’s shares jumped about 24 per cent to 26¢ a share on Wednesday, reflecting investors’ enthusiasm for the deal. Stephenson declined to comment on Henderson’s case, noting the matter remained ongoing.

Stephenson said the revenue sharing arrangement regarding Sandilands’ new podcast would allow the network to recoup some of the costs of the settlement, but was unconcerned about the former star promoting his rival program on ARN.

“We obviously won’t be advertising Kyle’s podcast on KIIS,” he said.

ARN terminated Sandilands’ contract in mid-March, following the expiry of a two-week deadline it had set for the controversial broadcaster to fix his “serious misconduct” against Henderson, after the pair had an on-air bust-up in February which reduced her to tears. Henderson has launched separate legal action against the company. Those proceedings remain ongoing, ARN said in its release to the market. Henderson’s agent declined to comment.

In legal documents to launch his court claim in March, Sandilands’ lawyers wrote that the heated exchange with Henderson had been “congruent with the style, tone and nature of the show and the robust character” his employer desired.

Sandilands, as a result, argued the termination was invalid because he did not commit a serious misconduct or breach. His lawyers argued that if there was a breach, he had no reasonable opportunity to “remedy” it, given Henderson’s contract had already been terminated.

In late March, Sandilands’ lawyers argued for an expedited hearing to try to get the controversial shock jock back on air as soon as possible, but were unsuccessful.

The settlement agreement will allow Sandilands to go public with his plans for a new online subscription show with the working title Kyle Sandilands Live. The plans for the new show, revealed by this masthead on Monday, involve a number of former staff from The Kyle and Jackie O Show and will be “uncensored”.

It will be marketed as a 6am breakfast product, according to one person familiar with the plans.

If the show is a success, ARN will reap some benefit, thanks to the revenue-sharing arrangement in its settlement with Sandilands. Those promotions are likely to appear on ARN’s smaller digital streaming platforms rather than Sandilands’ former home, KIIS FM.

Media lawyers Shaun Miller said both sides would probably be relieved at the prospects of avoiding an unpredictable trial.

“It would’ve been a lawyer’s picnic and a media circus, and it would’ve caused reputational harm to both sides,” he said.

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