Fox News Becomes NonProfit | Earnings Collapse after Lawsuit

well it's official the Dominion lawsuit

against Fox News for defamation is over

and boy oh boy the settlement is going

to hit the Fox News News Corp numbers

pretty hard it's a big big number and

I'm going to show you the actual

earnings for new score all their

businesses combined and let's just say

this is going to take a bite out of the

earnings okay dominion and fox agreed to

a

787.5

million dollar settlement that's almost

actually that's just slightly over three

quarters of one billion dollars and

what's important here is actually

looking at the financial now looking at

the financials is useful But first you

have to differentiate a lot of the

different companies that Rupert Murdoch

owns or has a voting or substantial

controlling and voting rights and for

example there's the Dow Jones company

which owns companies like the Wall

Street Journal Baron's market watch

financial news private Equity news and

formally published the Dow Jones

Industrial Average not to be confused

with the Dow chemicals company okay

there's that company which is owned by

News Corp News Corp is owned in part by

Rupert Murdoch And Trades under Tickler

or ticker symbol nwsa and

NWS okay that's News Corp

then you've got separately the fox

corporation which trades under ticker

Fox one's about a seven billion dollar

company

is about a 17 billion dollar company

this right here is about the 17 billion

dollar company the fox Corporation these

are the financials of the company that

lost or should I say settled the lawsuit

right here you could see that the net

income before taxes right here net

income before taxes because presumably

this lawsuit settlement will be a tax

write-off it's about 437 million dollars

for the three months ended December 31st

that means this settlement which is

about four percent of the company's net

worth works out to a slap of about six

months or half of a year where Fox

Corporation will basically be

broadcasting as a non-profit now they've

done this before see the last three

months of 2021 they actually lost money

as well and that's because they had a

pretty large 211 million dollar other

write down over here which is where we

expect this 7 187 million dollars stand

up now the good news is this company

this fox Corporation does seem to have

the cash available to just write a check

for it given they've got about four

billion dollars in free cash not

considering long-term borrowings and

about 2.5 billion dollars in bills which

leaves them enough to go ahead and pay

off this uh lawsuit settlement now do

keep in mind as we go through these

documents we're going to go over to the

cash flow statement for the company and

they do have a negative free cash flow

so it does mean that shareholders might

have to start helping prop up foxcorp

and So eventually they'll be paying for

this lawsuit in a lower earnings and

potential future borrowings but at least

for roughly around six months Fox

Corporation will be broadcasting as a

non-profit and if they borrow this 787

million dollars at say six percent

interest and it takes some a year to pay

all of this off and they pay a year of

Interest they're paying roughly 47

million dollars on the total that works

out to about

129.4 thousand dollars per day of

Interest

just to pay this settlement off so what

happened here to give you kind of a

quick and straight scoop as to what

broke down well the simple fact of this

is Fox News promoted something that they

doubted or knew was false and it had to

do with election fraud claims in fact

this lawsuit may not have even gotten

anywhere had Fox News actually bluntly

believed in the election fraud claims

but the problem is

if you know something is wrong and then

you air it

defamation and that's tough to defend

especially when it damages another

company Dominion voting machines were

definitely damaged or so it appears

through the reputation that was

essentially slandered throughout the two

years following the election cycle now

Dominion is cheering suggesting that Fox

News is finally admitted to lying about

Dominion now there are still people out

there who believe that there was

election fraud and I imagine that in

every single election there's some

degree of election fraud but the reality

was there were plenty of Insider quotes

from hosts at Fox News that made this a

really difficult case for Fox to defend

on top of that which will go through

some of those quotes in just a moment a

special master was appointed to this

case to potentially evaluate if Fox News

was trying to criminally obstruct the an

investigation into what was actually

happening via these lawsuit allegations

that's really bad because it kind of

suggests that things could have gotten a

whole lot worse not just for Fox but

also for Republicans because consider

what would have happened if Sean Hannity

Laura Ingram Tucker Carlson and

everybody at Fox ended up being publicly

put on a witness stand during this trial

this would have been the biggest trial

of media history to some degree I would

have loved to see it and would have

loved to cover it and now it's all

buried in the coffers of a settlement

but folks even Tucker Carlson questioned

what were called quote the outlandish

voter fraud claims at one point Tucker

Carlson went on to suggest that he

couldn't wait to be done or close to

ignoring Trump take a look at this quote

here as reported by wapum The Washington

Post Carlson said internally we are very

very close to being able to ignore Trump

most nights I truly can't wait I hate

him passionately and then of Trump's

four years in office quote we're all

preparing we've got or pretending we've

got a lot to show for it because

admitting what a disaster it's been is

too tough to digest but come on there

really isn't an upside to Trump that was

a Tucker Carlson quote in January of

2021 and there were plenty of others

such as individuals inside Fox realizing

that Their audience was demanding

coverage of voter fraud and so Fox was

stuck between a rock and a hard place

Fox is looking going okay some of these

claims are crazy but the more we talk

about voter fraud the more views we get

and Newsmax is taking all the views

because they're going super hard on

voter fraud so they're getting a lot of

conservative views and Fox News is

losing views there were talks inside Fox

by host that you know what the right

thing to do is stop talking about voter

fraud let Newsmax win in the short term

but in the long term Fox would come out

ahead and because of all of this

internal dialogue that was revealed

through the Dominion lawsuit

unfortunately for Fox Dominion got a

pretty good case to show hey Fox y'all

really screwed us here and ultimately

Fox decided to saddle now the judge in

this case made it very clear that they

believe there is Crystal Clear evidence

that there is or was no voter fraud in

this case and that there is no fraud

that could potentially be alleged that

occurred by Dominion voting systems that

was a bad setup for Fox it's potentially

a very good setup though for free speech

because on one hand it shows that look

you're totally allowed to freak speedly

if speak freely and say whatever you

want on the internet as long as it's

clear it's your opinion but if you know

something is untrue and then you say

something as if it's fact to the

contrary Point you're going to get in

trouble and the First Amendment isn't

going to protect you about that so this

actually in my opinion doubles down and

affirms how great the first amendment is

you have the right to whatever opinion

you want as long as you make it clear

that it's your opinion but if you

suggest that something is fact or air

claims that you believe are false then

you're perpetuating lies and that gets

punished in America now of course in a

settlement usually the sides don't admit

guilt although they could and in this

case Dominion is of course cheering that

fox admitted they lie either way the big

convincing fact here for Fox is probably

now that they don't have to have a

six-month media spectacle of a pub

public trial maybe less maybe a couple

months of a public trial and all of

their hosts revealing how they thought

the election fraud claims were actually

BS but they chose to air them anyway

that would have been a big issue for Fox

News and it could have tanked their

credibility now this will be a headline

today and tomorrow maybe for the next

day but then people forget about it but

the game isn't over yet see smartmatic

has another lawsuit worth potentially up

to two and a half billion dollars but

then again remember anybody could sue

for any amount and that could be yet

another lawsuit that Fox News has to

deal with so far the big takeaway from

this though is Fox News is going to be

working as a charity for the next 15 to

18 months and if their revenues decline

anymore it could take him even longer to

recover the money of course if their

views recover and incomes move up and we

don't end up going into a recession

maybe they could pay off these dance

within the next year and you know what

move on learn a lesson hope it never

happens again though again we'll see

what happens with smartmatic but in the

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