787 Million Dollars Is A Lot Of Money

[lame54]

To you, me and Dr. Evil.

But not to our Billionaire Overlords
They play by a different scorecard

[Irish_Dem]

1. Chump change to them.

[Shermann]

2. There's a lot you can deduce from that number

Look at how much information a poker player can deduce from a meager hundred-dollar bet.

The $787 million would have been a huge win had it gone to trial, being nearly 50% of the original suit amount. So why settle for an amount equal the plaintiff's top number? This is a type of case that is generally difficult to win.

Fox isn't talking, but they don't need to.

[TwilightZone]

3. It's a huge amount from Dominion's perspective.

Which, contrary to what many seem to believe, was the entire point of the suit.

It doesn't matter how it impacts Fox News. The point of the suit was for Dominion to be compensated for damages to their reputation. They clearly feel that that has been accomplished.

The amount requested wasn't intended to be punitive. It was meant to be restorative.

[bluedigger]

4. In my world $787 is a lot of money.

I guess we all inhabit our own realities.

[ITAL]

5. Let's say

They won at trial. Let's say they won the full 1.6 billion. It would be appealed and appealed for years. Even if they finally got the full 1.6, the amount of money they'd spend on the legal counsel would have been significant. It's unlikely they would have gotten the full amount from the start, so let's say they were awarded 1.2 billion before any appeals. Again, the years you have to pay dozens of lawyers/paralegals is gonna eat into your money money. This way they get a nice number from the start. Hell, Dominion probably saved themselves lots of money. No appeals eating into what they got.

[lame54]

7. Good for them but that's not the point...

The tv is littered with people telling me how financially devastating this is to Fox. But it's not.

And none of the lying liars are going to be fired because they are the ones that are going to make that money back

[inthewind21]

11. Your first mistake

Was thinking this suits goal was to take fox down and have hosts fired. It was not. It was filed to compensate Dominion for the damage to their business. They were never concerned with what the public wanted or how the public felt . Because it wasn't the public's suit, it was theirs.

[lame54]

12. Your first mistake...

Thinking this post was about Dominion when it was entirely about the ultra rich

Free to do whatever they want and issued a parking ticket

[onenote]

15. Your mistake is thinking that paying out the equivalent of half of a year's net income

is nothing to News Corp.

Believe me, it's something. Last year, the company average $376 million per quarter in net income. And that number was inflated by the fact that election year advertising in the third quarter of 2022 pushed their net income for that one quarter to $605 million, while the most it had in any of the other three quarters was $313 million.

And it is highly unlikely that insurance will cover that much of the settlement. Most corporate insurance policies (including those for media companies that I've seen) put fairly stringent limits on the payout per claim, even if the total policy is large. So even if, for argument's sake, News Corp had a $500 million liability insurance policy, the amount payable for a single claim might not be more than five or ten million. Personally, i've never seen a corporate policy with $500 million in coverage, but the one's I have seen typically cap the payout per claim at between $500,000 and $5 million depending on the size of the company.

[lame54]

17. I think you are arguing with the wrong person...

I never said anything about insurance

Down 500 mil one day Up 500 mil the next

They have so much money it's just score keeping at this point

There will be no changes

Not at Fox

No yachts repossessed

Not one less shrimp cocktail

It's like you losing 20 bucks. It sucks but it's not going to make you homeless

Everybody is crying about this huge loss but it's just going to be absorbed. That's how bad the money grubbing has gotten

[ITAL]

16. Dominion is a big company

But not a HUGE company. If this had gone through appeals for years and years the amount of paperwork Fox could have dumped on them may have forced Dominion into bankruptcy before the appeals process even ended.

[lame54]

18. This post is not about Dominion

[ITAL]

19. It kinda is

[lame54]

20. No. It's about...

The world of the ultra rich and how we keep trying to apply our rules to it

[sanatanadharma]

6. Fox paid hush money to Dominion - make it a meme

Fox's big hush money settlement proves the danger to Fox, if truth be known.

[Lovie777]

8. Not a lot of money for fake, inc.....................

the lies will continue.

As to one of my favorite tv show 9-1-1, fake, inc. may cancel it.

[onenote]

9. Yes it is. It's more than News Corp (entire company) net income for half of a year.

Over the past 18 calendar quarters, News Corp has averaged $381 million in net income per quarter. For 2022, it's average quarterly net income was $376 million -- a number that is somewhat distorted by the fact that in the third quarter, fueled by election year advertising, it had net income of $605 million, which was nearly double what it had as net income in the best of the other three quarters of the year.

Most companies would regard an expense that was equal to one-half of its yearly net income as a signifiant hit.

[lame54]

10. Most companies that have taken a "significant hit" would...

Look at changing their business model or maybe even bankruptcy

Neither will happen here because it wasn't significant

[ProfessorGAC]

13. You Keep Saying That

But, you're wrong. Losing 36% of net income EBITA is a big deal to EVERY company. The cost of doing business is encapsulated in the operating expenses, and not from the bottom line.
That's not how big business works.
Their net income was already only 15% of revenues. Now, it's under 10%.
They have a lot of explaining to do to shareholders even though the Murdochs own 39.6% of the shares.

[onenote]

14. Thank you. News Corp's stock price has been dropping much of the year

undoubtedly impacted by the cases against it. And even though it went up by $1.23 today, it still is down almost 5% for the year, at a time when the Dow overall is UP by 2.26% for the year.

Investors are a good barometer of when a company is taking a significant hit. And just because a company isn't driven into bankruptcy doesn't mean it hasn't taken a significant hit. Lots of company's felt significant pain during the pandemic, but they didn't all go into bankruptcy. Using News Corp as an example, in the third quarter of 2021, it had a net LOSS of $85 millions. It didn't drive them into bankruptcy, but I guarantee that it didn't thrill investors either.