Now, a battle over payouts is likely to ensue between the former Kyle and Jackie O Show co-hosts and ARN Media. (ABC News)

Even before this month’s colossal blow-up of The Kyle and Jackie O Show, ARN Media’s future had already been teetering on the edge.

There was the loss of advertisers.

A decrease in revenue.

A failed attempt by the network to push The Kyle and Jackie O Show onto a Melbourne audience.

Then came the news that the show had been taken off KIIS FM and Kyle Sandilands had been suspended after an on-air row with co-host Jackie “O” Henderson on February 20.

“The Kyle and Jackie O show will no longer be presented,” ARN Media said on Wednesday in a statement, saying they had issued a notice of termination of contract to Sandilands due to his behaviour during the February 20 show.

Now, a battle over payouts is likely to ensue.

“It’s over to my lawyers,” as the shock jock said himself. “I’m not done. Not by a long way.”

When asked if he was weighing up buying the network himself, Sandilands told a throng of reporters outside his home on Tuesday: “There are many options.”

ARN Media said in a statement on March 3 that Henderson said she “cannot continue to work with Mr Kyle Sandilands” and would no longer present the program.

Henderson later clarified she had not quit or resigned, and would be exploring the matter through “appropriate legal avenues”.

Kyle Sandilands and ‘brand safety’

For decades, The Kyle and Jackie O Show weathered storms — from saying actor Magda Szubanski would shed more weight in a concentration camp, to the lie-detector stunt with a 14-year-old.

They breached numerous guidelines and issued multiple on-air apologies during their 25-year broadcast partnership.

And some advertisers did not feel comfortable being associated with controversy.

“[Sandilands] is too radioactive right now,” Sam Buckingham-Jones, media correspondent for the Australian Financial Review, told ABC Radio National.

“There is too much stink around him, and advertisers don’t want to be around him because they’re concerned about being associated with his very crude brand.”

The founder of activist organisation Mad F***ing Witches told the ABC her campaign played a prominent role in pressuring advertisers to boycott the show.

When ARN Media released its FY25 results in February, it was described as a “year of transition” and “cost-efficiency measures”.

Their metro revenue declined 16.1 per cent from the year prior, in part due to softer advertiser demand for the KIIS FM network during the period.

In their report, ARN Media acknowledged “brand safety remains a key concern”.

ARN Media declined to comment to the ABC.

A ‘pretty dire’ predicament

On March 6, another sign of trouble at the network emerged — a departure from the oldest share index in Australia.

The S&P Dow Jones Indices announced changes in the Australian Securities Exchange (ASX) Indices as a result of their March quarterly review.

The changes — effective before the opening of trading on March 23 — confirmed the removal of ARN Media from the All Ordinaries Index, commonly known as the All Ords, which tracks the 500 largest eligible companies listed on the ASX.

At the time of publication, ARN Media’s market valuation is around the $100 million mark — almost half of Sandilands and Henderson’s $200 million, 10-year contract.

The network’s share price has also been steadily declining since October 2025.

“This is a company whose fortunes have been pretty dire over the last year or two,” Mr Buckingham-Jones said.

“They [ARN Media] want him [Sandilands] to go away, and they’re willing to go through all of this legal pain to get there.”

The legal battle ahead

With this case now reaching the level of lawyers, one expert suggested the only way forward was to discuss a payout.

“ARN will be trying to find a number that they can give to Kyle and Jackie O and say, ‘Please never work for us again,” independent economist Conrad Liveris said.

“There is no other pathway given where they’re at right now … the reality of the situation is that this isn’t a typical employment issue. We’re really dealing with the valuation of a contract.”

Mr Liveris said his view, based on the public reporting and information available, was that the value of Sandilands and Henderson’s respective $100 million contracts had decreased since they were signed in 2023.

“What will really occur is considerations to the performance of the contract so far, the commercial reality that ARN finds itself — both with advertisers and regulators,” he said.

“These are sort of the issues that are going to be coming in to try and put a specific dollar value into the final settlement.”