Kyle Sandilands settles for $13.6m, Jackie O heads to court as radio war heats up

Kyle Sandilands is $13.6 million richer and free to launch his own show, but Jackie O Henderson is still locked in a legal war with their old employer — and it's heading to court in October.

ARN Media, the owner of KIIS FM, announced the settlement on Wednesday. Sandilands will get $12.09 million in cash — $3 million in July, then monthly payments until June 2029. On top of that, ARN will give his new venture $1.5 million worth of advertising on its partner platforms over three years. In return, ARN gets 19.9% of any revenue his new show makes.

Sandilands is banned from working with ARN's direct competitors until March 2027. But he can go public with his plans for a new online subscription show, working title Kyle Sandilands Live. It's expected to launch as early as August, marketed as a 6am breakfast show. No official co-host — just a team of former staff from The Kyle and Jackie O Show who'll act as characters and foils. The show will be "uncensored," according to sources.

ARN's shares jumped about 24% to 26 cents on Wednesday. CEO Michael Stephenson called it "a good outcome for ARN, and an excellent outcome for our shareholders." He said the revenue-sharing deal means the network can recoup some costs, but added: "We obviously won't be advertising Kyle's podcast on KIIS."

Meanwhile, Henderson's situation is a different story. Talks between her and ARN broke down in mid-May. There have been no formal settlement talks, and contact via intermediaries stopped weeks ago. Two people familiar with the situation say the parties haven't spoken in over a month. Henderson's legal action against the company is still ongoing, and the case is due back in court on Thursday ahead of a scheduled October trial.

It's a dramatic fall for a duo who were once the kings and queen of Australian breakfast radio. Sandilands and Henderson were employed on contracts worth $200 million over a decade. But everything unravelled in February when an on-air bust-up reduced Henderson to tears. ARN gave Sandilands a two-week deadline to fix his "serious misconduct" — then terminated his contract in mid-March.

Sandilands fought back, arguing in legal documents that the heated exchange was "congruent with the style, tone and nature of the show and the robust character" his employer wanted. He said the termination was invalid because Henderson's contract had already been canned, so he never had a chance to "remedy" anything. He initially sought $85 million — far more than the $13.6 million he ended up with.

Now Sandilands is desperate to get back on air. His new show could pull listeners away from KIIS, and ARN's deal ensures it still gets a slice of the pie. But for Henderson, the path forward is less clear. She's headed for a courtroom showdown that could air all the dirty laundry of one of Australia's most successful — and most toxic — radio partnerships.

"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." — ARN CEO Michael Stephenson