Monday, December 10, 2012

2DAY FM’s Parent Co. Takes Major Financial Hit


UPDATE 10:30am 12/10/12:  Southern Cross Austereo, the parent company of 2DayFM, released a statement Monday saying Greig and Christian's show had been terminated and there would be a company-wide suspension of prank calls. The DJs themselves remain suspended.


Earlier Posting...

Investors wiped $46 million from the value of 2Day FM's parent company, Southern Cross Media Group, as fury over the royal phone prank scandal grew, according to a story at heraldsun.com.

Shares in the broadcaster plummeted 5.88 per cent, or 6c, to close at $1.04.

The share market walloping came as major advertisers, including Telstra and Coles, suspended lucrative advertising contracts in the wake of the scandal, involving 2Day FM hosts Mel Greig and Michael Christian.

This is not the first time advertisers have fled the broadcaster, which operates other stations including Fox and MMM.

Last year up to 23 advertisers pulled the plug after presenter Kyle Sandilands made derogatory comments about a female journalist from News Limited, publisher of the Herald Sun.

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