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Analysts: Gretchen Carlson's Lawsuit Against Roger Ailes Currently Only A 'Headline Risk'

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Analysts: Gretchen  Carlson's Lawsuit Against Roger Ailes Currently Only A 'Headline Risk'
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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.

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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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