(Updates to add stock movement in the headline and the last paragraph)
ARN Media (ASX:A1N) reached a binding settlement with Kyle Sandilands resolving all outstanding legal disputes, including Federal Court proceedings, according to a Tuesday disclosure filed with the Australian bourse on Wednesday.
The agreement requires the company to pay a total of AU$12.1 million, comprising AU$3 million in July and the remainder in monthly installments through June 2029, per the filing.
Sandilands will cease providing services to the company and intends to pursue independent media projects, the filing said. Additionally, the agreement contains a non-compete clause that bars Sandilands from working with the company's direct competitors for up to nine months, expiring in March 2027.
The company will provide AU$1.5 million in advertising services to Sandilands over three years while also receiving a nearly 20% net revenue share from his new venture for up to three years, subject to agreed thresholds and caps.
Proceedings involving Jacqueline Henderson are ongoing, the filing added.
The company's shares jumped around 24% in recent Wednesday trade.