Payout ends Sandilands legal row as Jackie O’s rolls on

Kat Wong | June 17, 2026

Australia’s most notorious radio pairing are heading back to court, where one half will finalise his legal battle with his former employer.

Shock jock Kyle Sandilands reached a settlement with ARN Media to bring his bitter legal battle to an end, but former on-air partner Jackie “O” Henderson will push on with her Federal Court bid on Thursday.

ARN Media revealed it would pay Sandilands $12 million in an ASX announcement published on Wednesday.

He will also receive $1.5 million worth of advertising services on the radio network’s partner platforms, while ARN will be given a 19.9 per cent contribution from any of his new ventures for up to three years.

Though the former KIIS FM radio host has said he intends to pursue independent media opportunities, he will not be able to engage with any of ARN’s direct competitors for up to nine months from the date of settlement.

“This agreement brings certainty for ARN and resolves the legal dispute,” ARN chief executive officer Michael Stephenson said.

“ARN remains focused on executing its strategy, including driving a leaner, more efficient operating model, strengthening its core radio network and continuing to invest in digital capabilities and long-term growth.”

Legal proceedings with former co-host Henderson continue, the radio giant confirmed.

The matter is listed for a case management hearing in Sydney’s Federal Court on Thursday morning.

As of Wednesday afternoon, ARN’s stocks were up by 31 per cent to 28c.

The pair were being sued by their former employer after they lodged separate lawsuits following an on-air spat that led to their show being axed.

Both were seeking the full payout of the remainder of their 10-year, $100 million contracts signed at the end of 2023.

But ARN claimed the controversial duo cost the company key advertising revenue through their sacking.

Audience share for KIIS FM dropped in The Kyle and Jackie O Show’s former slot in their primary market, according to ratings surveys released in April and June.

The proportion of breakfast listeners on KIIS FM in Sydney dropped one percentage point to 11.7 between February 8 and April 4, representing most of the period after the pair’s final show on February 20 and Sandilands’ sacking on March 4.

This Sydney downswing has continued in the months since, falling from 11.7 per cent to 8.2 per cent from March 1 to May 23.

By breaching their contract and making the future of their breakfast show untenable, both Henderson and Sandilands are liable for the subsequent loss of advertising revenue, the broadcaster said in documents filed in the Federal Court.

The highly public bust-up moved into the legal arena after an exchange between the pair in February, when Sandilands accused his co-host of being “off with the fairies”.

The on-air comments prompted Henderson to say she could no longer work with her contentious colleague.