Southern Cross Austereo shares lose $130m after Kyle Sandilands departure
Shares in Southern Cross Austereo continued to fall today as stocks the company went through one of the biggest two day trading drops on the ASX in its history.
ASX SXL | Source: Google Finance
Friday’s falls based on the loss of the Kyle & Jackie O breakfast show were followed today by reaction to the weekend’s news that Kyle Sandilands and Jackie Henderson are in talks with rival company ARN along with today’s poor ratings results which saw DMG’s Nova and smoothfm make ground at the expense of SCA’s Today Network and Triple M.
Shares in Southern Cross Austereo stocks (SXL) have now fallen from $1.89 on Thursday night to a close of $1.70 giving the company a market capitalisation of $1.2bn, representing a drop in value of $130m.
2Day FM’s The Kyle & Jackie O Show is currently the top rating FM breakfast show in Sydney, which is in turn Australia’s largest radio market with advertising revenues across the networks of more than $200m a year.
Nov 5 update: The shares recovered slightly on Tuesday morning, increasing by about 3.5 per cent to $1.76.
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
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“Those who don’t know history are doomed to repeat it.”
Edmund Burke.
And so it is with Austereo’s loss of Kyle & Jackie, surely they remember what happened when John Laws left 2UE. It never recovered!
They should have paid Kyle what he wanted, the ROI would have been much greater that the cost, the show was a cash cow. Dumb!!
Oh well, that’s show biz !
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$130m … cheap at twice the price to be rid of Kyle.
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