The 2020 election has broken the relationship between conservative network Fox News and President Donald Trump, according to The Economist.
It was good while it lasted, the outlet reported, noting Fox News' ratings have risen by one-third since 2015 — and, in the latest financial year, Fox News and Business generated 80% of Fox Corp.'s gross operating profit.
But without Trump in the Oval Office, the network "must figure out how to deal with the exit — and wrath — of its star," the Economist wrote.
Despite reporting strong earnings Nov. 3, Fox Corp.'s share price dipped, the Economist reported.
"There appears to be something below the surface that is torpedoing the stock," Michael Nathanson, a media analyst, wrote of the drop, the Economist reported. "That something might be the potential launch of a new Trump News Network."
It is good news for rival conservative channels, the Economist noted.
"We've arrived at Waterloo, and the battle is about ready to take place," Newsmax CEO and longtime Trump friend Christopher Ruddy told the magazine, which reported revenues from advertising have doubled for Newsmax in the past six months.
The Economist reported Fox News could wind up taking a 30% revenue hit if Trump became the star of another network; the rest of its revenue, however, comes from the fees cable companies pay to carry it, and 90% of those deals are locked down for at least two years.
Facing the prospect of a Democrat team in the White House could still work out for conservative outlets, the Economist reported: Fox News' ratings were high under Trump, but its share of the total was greater in the Obama years.
© 2021 Newsmax. All rights reserved.