ARN Media settles legal dispute for $12.1M

• ARN Media has reached a binding $12.1 million cash settlement with media personality Kyle Sandilands to resolve all outstanding Federal Court legal proceedings.
• The agreement includes an advertising partnership valued at $1.5 million and a 19.9% revenue share for ARN Media from Sandilands' future ventures.
• The company stated that the resolution allows management to focus on executing its strategy of driving a leaner and more efficient operating model.

Australian broadcaster ARN Media (ASX:A1N) has entered a binding settlement to resolve all outstanding Federal Court proceedings with Kyle Sandilands by agreeing to pay a cash settlement sum of $12.1 million.

The final agreement follows a period of legal confrontation after the commercial broadcaster terminated the prominent radio host's ten-year contract ahead of its scheduled conclusion.

“This agreement brings certainty for ARN and resolves the legal dispute,” said ARN Media CEO Michael Stephenson.

Under the terms of the settlement, the company will provide Sandilands with $1.5 million in advertising services over three years and receive a 19.9% net revenue share from his new venture.

Following the announcement, the ARN Media share price was down at $0.21.

The media group is currently refocusing its operations towards expanding its core radio network and investing heavily in digital audio capabilities across its regional and metropolitan platforms.

The corporate restructuring forms part of a broader strategy by management to deliver a lower cost base and higher efficiency levels across all Australian media assets.