Analysts: Gretchen Carlson's Lawsuit Against Roger Ailes Currently Only A 'Headline Risk'
Gretchen Carlson, a Fox News host, is suing Roger Ailes, the network's CEO and chairman.
Tuna Amobi, an analyst at S&P, and Pacific Crest's Andy Hargreaves were both guests on CNBC to discuss what impact, if any, the lawsuit will have on the parent company Twenty-First Century Fox Inc (NASDAQ: FOXA) (NASDAQ: FOX).
According to Amobi, news reports of sexual allegations by Ailes are "surprising," but are unlikely to have any impact on the stock — although it does represent a "headline risk" and a "potential distraction" to the management team. He added that Ailes is an "important personality" inside Fox.
Hargreaves jumped in and said that if Carlson's case has any "merit" to it, then it "has to be discussed at a higher level." In the meantime, he shared a similar sentiment as Amobi in that it is merely a "headline risk" for the time being.
Hargreaves added that he is positive on Twenty-First Century Fox as a company given its new programming cycle, sports assets and its "unique growth driver" in the Indian market through STAR India.
Class A shares of Twenty-First Century Fox (FOXA) were trading slightly higher by 0.13 percent at $26.68 Wednesday afternoon, but are lower by nearly 20 percent over the past year.
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