Stock for 21st Century Fox slipped almost 3 percent on Wednesday, one day after reports said that Fox News boss Roger Ailes was effectively out.
While nothing on his future was official at the time of this writing, the general consensus suggests that the split is being held up for specific language. Either way, shareholders of the parent company didn’t react favorably today.
Here’s the five-day snapshot of FOXA stock, to best illustrate the recent decline:
It’s hard to say what — if any — the long-term implications could be for Fox News sans Ailes, which appears to be a foregone conclusion.
There could be some severance cost impact on the Profit & Loss statement, Telsey Advisory Group’s (TAG) Tom Eagan told TheWrap. But it won’t be “that material,” he said — and that’s all in the short term anyway.
Generally speaking, Eagan believes the negotiated parachute package could impact Fox’s overall operating income margin “by 20 to 40 basis points,” he said.
So, don’t jump ship solely over this, Fox stockholders.