Fox News has recently reported a quarterly net loss due to the costs from a defamation suit. The defamation suit involves Dominion Voting Systems, and was filed in response to Fox News reporting false claims about the company’s involvement in the 2020 US Presidential Election.
Fox News reported losing $129 million in the first quarter, compared to a profit of $567 million in the same quarter last year. The costs associated with the Dominion lawsuit were not the only contributing factor to Fox News’ financial woes. The company also reported lower ad revenue due to a decrease in viewership, as well as higher programming and talent costs.
The Dominion lawsuit, which was filed in March 2021, alleges that Fox News falsely claimed that Dominion was involved in election fraud during the 2020 Presidential Election. Dominion is seeking $1.6 billion in damages from Fox News. The lawsuit came after many individuals and organizations spread false claims about election fraud in the wake of former President Donald Trump’s loss to Joe Biden in the election.
Fox News has since retracted their false claims about Dominion, and issued a public apology. However, the damage has already been done, and the costs associated with the lawsuit are impacting the company’s financials.
In addition to the Dominion lawsuit, Fox News has also faced backlash for their handling of the Covid-19 pandemic. The network has been criticized for downplaying the severity of the pandemic and spreading misinformation about the effectiveness of masks and vaccines.
Despite the financial setbacks, Fox News remains one of the most-watched cable news networks in the United States. However, the recent losses may force the company to make difficult decisions regarding their programming and staffing.
Overall, the costs from the Dominion lawsuit have had a significant impact on Fox News’ financials, leading to a quarterly net loss. The company faces further challenges related to ad revenue, viewership, and public perception. It remains to be seen how the network will respond to these challenges and whether it can bounce back from the recent losses.