Fox News Corp’s settlement with Dominion Voting Systems is good news for equity partners and investors in the voting company.
Key Details
- The case of Dominion Voting Systems Vs. Fox Corp was settled out of court at the last minute, with Fox News Corp agreeing to pay Dominion Voting Systems $787 million and admitting guilt.
- Staple Street co-founder Hootan Yaghoobzadeh, which owns Dominion Voting Systems, says the settlement proceeds will be distributed to company shareholders.
- The settlement has unintentionally turned Staple Street’s investment in Dominion into one of the most successful private equity deals of all time, Axios reports.
Why It’s News
Staple Street Capital purchased Dominion in 2018 for $38 million, valuing the company at $80 million. Dominion generates $45 million in annual revenue—which is less than 10% of what it will generate from the settlement after taxes and legal fees. The sudden flush of settlement money has turned the initially modest investment into a significant cash flow for investors, Axios notes.
The lawsuit emerged from the aftermath of the 2020 election, where right-leaning news networks like Fox News, OAN, and Newsmax repeated President Donald Trump’s claims that the election had been stolen. These claims were repeatedly argued before Congress and the Supreme Court, which found their claims to be insufficient or unsubstantiated.
Dominion Voting Systems and fellow voting company Smartmatic have moved aggressively against such claims, arguing that election conspiracies have cost the company billions of dollars, resulting in threats against staff, and reputational damage. Fox remains the subject to a second, $2.7-billion lawsuit from Smartmatic. Dominion has several additional lawsuits filed against Newsmax, OAN, and individuals involved in the “stop the steal” campaign, such as Trump lawyer and former New York City Mayor Rudy Giuliana and attorney Sidney Powell.
Dominion had been seeking $1.6 billion in the suit, before the two sides settled on $787 million minutes before the trial was set to commence on Tuesday, April 17, 2023.
