Australian radio personality Kyle Sandilands has reached a A$12 million (approximately US$8.5 million) settlement with ARN Media, the company that owns KIIS FM, after it terminated his ten-year, A$100 million contract less than a year into its term. The settlement, confirmed on Wednesday, includes a A$12.09 million cash payout and A$1.5 million worth of advertising across ARN's platforms over three years. Sandilands had originally sued for A$85 million, alleging wrongful termination.

Sandilands and his co-host Jackie "O" Henderson had for decades co-hosted one of Australia's highest-rating commercial breakfast radio programmes, building their audience in Sydney on a brand of irreverent and often crude humour. The partnership unravelled in February after a seven-minute on-air confrontation in which Sandilands accused Henderson of being distracted by her interest in astrology and not contributing adequately to the show. Henderson, visibly upset during the exchange, accused him of bullying. She subsequently took a leave of absence, and ARN announced she had told them she could not continue working with Sandilands. The show was pulled from air, bringing an abrupt end to a partnership of roughly 27 years.

ARN had accused Sandilands of serious misconduct, but Wednesday's statement said the settlement provided "the full and final resolution of all claims and counterclaims between the parties." Under the terms of the deal, Sandilands is barred from working for any ARN competitor until March next year, and ARN will receive a 19.9% stake in his next media venture for a period of three years. Sandilands said he had tried to repair things with Henderson after the dispute but was prevented from contacting her or show staff in the weeks that followed, and that ARN showed no interest in his offer to continue with a different co-host.

Henderson, who filed her own A$82 million lawsuit against ARN, is pressing ahead with her legal claim. At a case management hearing before Justice Angus Stewart in the Federal Court, her barrister indicated the team was working diligently to prepare evidence and was eager to keep an October trial date. The outcome of Sandilands' case may increase pressure on ARN ahead of that hearing, though the two claims involve distinct circumstances.

The saga has exposed underlying tensions within ARN beyond the on-air row. Reports following the show's cancellation suggested some staff had welcomed its end, partly because the high-value contracts for Sandilands and Henderson had contributed to redundancies among other experienced employees. A failed effort to expand the Sydney-focused programme to Melbourne had also been cited as a factor in the network's decision not to fight to keep the show alive.