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    PepsiCo raises outlook as quarterly results beat expectations

    PepsiCo raised its outlook for the year.
    The beverage and snacks giant posted earnings and revenue that topped Wall Street’s expectations.

    Pepsi sodas displayed for purchase at a Walmart SuperCenter on December 06, 2022 in Austin, Texas.
    Brandon Bell | Getty Images

    PepsiCo on Tuesday boosted its outlook for the year as it posted earnings and revenue that beat expectations.
    Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

    Earnings per share: $1.50 adjusted vs. $1.39 expected
    Revenue: $17.85 billion vs. $17.22 billion expected

    For the period ended March 25, PepsiCo reported net income of $1.93 billion, or $1.40 a share, compared with $4.26 billion, or $3.06 a share, in the year-earlier period. Excluding one-time items, the company posted $1.50 in earnings per share.
    Net sales rose 10.2% to $17.85 billion. Organic revenue, which doesn’t include the impact of acquisitions and divestitures, rose 14.3%.
    Volumes rose 1% in PepsiCo’s beverage business, while they declined 3% in its food segment. Overall, volumes were down 2% across all categories, while prices were up 16% overall.
    Frito-Lay North America reported an organic revenue increase of 16%, fueled by market share gains and double-digit net revenue growth across key brands like Lay’s, Doritos, and Cheetos, as well as brands such as Sun Chips and PopCorners.
    PepsiCo Beverages North America’s organic revenue increased 12%, with with Pepsi delivering double-digit net revenue growth and brands like Gatorade and Aquafina delivering high single-digit net revenue growth.

    The company said it expects its full-year 2023 organic revenue to increase 8%, up from 6%, and core constant currency EPS to increase 9% up from 8%.
    Earlier this month, the company also set a goal to design 100% of its packaging to be recyclable, compostable, biodegradable or reusable by 2025.
    “These things are hard, they’re not easy, but what I would tell you is we’re fully committed to it,” PepsiCo Foods North America CEO Steven Williams said at the time. More

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    McDonald’s earnings beat estimates as U.S. traffic grows despite price hikes

    McDonald’s first-quarter earnings and revenue topped Wall Street’s estimates.
    The fast-food chain’s U.S. traffic rose for the third consecutive quarter, bucking the industry trend of slipping traffic.
    All three of McDonald’s divisions reported same-store sales growth of 12.6%.

    Delivery couriers are seen near McDonald’s restaurant in Krakow, Poland on April 12, 2023. 
    Jakub Porzycki | Nurphoto | Getty Images

    McDonald’s on Tuesday reported quarterly earnings and revenue that topped analysts’ expectations as U.S. consumers keep buying Big Macs and Shamrock Shakes.
    Shares of the company rose about 1% in premarket trading.

    Here’s what the company reported compared with Wall Street expectations, based on a survey of analysts by Refinitiv:

    Earnings per share: $2.63 adjusted vs. $2.33 expected
    Revenue: $5.9 billion vs. $5.59 billion expected

    The fast-food giant reported first-quarter net income of $1.8 billion, or $2.45 per share, up from $1.1 billion, or $1.48 per share, a year earlier.
    Excluding $180 million in restructuring charges and other items, McDonald’s earned $2.63 per share.
    Net sales rose 4% to $5.9 billion. All three of its divisions reported same-store sales growth of 12.6%.
    In its home market, higher menu prices and increased traffic fueled same-store sales growth, which topped StreetAccount estimates of 7.9%.

    McDonald’s U.S. traffic rose for the third consecutive quarter, bucking the industry trend of slipping traffic as menu prices rise. Historically, fast-food chains like McDonald’s have fared well during times of economic uncertainty as consumers trade down to its cheaper meals.
    Outside the United States, McDonald’s also saw better-than-expected sales. Its international operated markets, which include the United Kingdom, France, Germany and Australia, beat StreetAccount estimates of 8.5% same-store sales growth.
    Its international developmental licensed markets segment, which includes China and Japan, topped same-store sales expectations of 10.5%.
    This is breaking news. Please check back for updates. More

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    Fintech firm Klarna overhauls its app with a TikTok-like discovery feed as A.I. hype swirls

    “Buy now, pay later firm” Klarna on Tuesday made some sweeping changes to its app, including a TikTok-inspired discovery feed that recommends products to users.
    David Sandstrom, Klarna’s chief marketing officer, says the firm took inspiration from Chinese tech platforms’ ability to target users with uncanny precision.
    Among the other features Klarna is rolling out is a resale option that lets people sell used clothing, electronics and other items through a partner platform.

    The Swedish “buy now, pay later” pioneer said Tuesday that its new design would help users find the items they want by using more advanced AI recommendation algorithms, while merchants will be able to target customers more effectively.
    Rafael Henrique | SOPA Images | LightRocket via Getty Images

    Klarna announced a sweeping redesign of its app, adding a TikTok-inspired discovery feed powered by artificial intelligence, customized shops for social media content creators, and the ability to sell secondhand goods.
    The Swedish “buy now, pay later” pioneer said Tuesday that its new design would help users find the items they want by using more advanced AI recommendation algorithms, while merchants will be able to target customers more effectively.

    The AI will build a personal profile of shoppers based on their shopping behavior and which brands they like. They’ll then be shown recommendations from Klarna’s network of 500,000 retailers, which includes Nike, H&M and Instacart. Klarna counts over 150 million users globally — including users accessing its online checkout tools via retailers.
    According to David Sandstrom, Klarna’s chief marketing officer, the firm took inspiration from Chinese tech platforms, which he said have mastered the art of algorithm driven-shopping.
    “In China, a couple of years ago, 90% of transactions started with a search,” Sandstrom said. “Nowadays, less than 50% of purchases start with a search because recommendations are so tailored to them.”

    The Klarna app has been redesigned to tailor product recommendations to users based on their shopping habits using artificial intelligence.

    “Our ambition is to basically offer people products and brands before they knew they wanted them,” he added.
    TikTok, in particular, has become the envy of major online platforms, thanks to its advanced targeting. The company has been rapidly growing its e-commerce business, which handled a reported $1 billion in sales in the first quarter, according to The Information.

    Still, Sandstrom admits Klarna’s technology is nowhere near as sophisticated as TikTok’s — but he’s confident the company can get to that level one day.
    “It would be naïve to compare us to TikTok’s recommendation engine. It would be a blatant lie to say we’re close to that,” he said. “But we have the prerequisites to do that.”
    Klarna joins a host of other tech firms which have been loading their services with AI software to better tailor content to users as the surge in popularity for OpenAI’s ChatGPT drove up hype for the technology.

    Music streaming platform Spotify recently rolled out an AI-powered DJ that selects songs based on a person’s listening habits, for example.
    Klarna itself previously launched the ability to integrate ChatGPT into its service with a plugin that lets users ask the popular AI chatbot for shopping inspiration. 
    But Klarna isn’t relying on AI alone to personalize its service to users. The app also launched an “Ask Klarna” feature Tuesday which lets shoppers chat with or video call human customer advice specialists.
    Among the other features Klarna is rolling out is a resale option that lets people sell used clothing, electronics and other items through a partner platform. Klarna declined to disclose the partner for its resale service.
    In its home market of Sweden, Klarna already offers the ability to sell secondhand goods through a partnership with resale marketplace Tradera.
    Resale platforms like Depop and Vinted have grown more popular in recent years, thanks in part to Gen Z’s embracing of the circular economy, which promotes sustainability by reducing waste through reuse and recycling.

    Targeting monthly profitability in summer

    Klarna is also launching a tool that lets content creators set up their own storefronts to promote items from brands they’ve struck affiliate deals with. The service, called “Creator Shop,” launches in the U.S. soon.
    It also launching a self-service tool for advertisers, called “Ads Manager,” that lets marketers track paid product listings they’ve taken out in Klarna’s app. Of late, Klarna has sought to diversify into advertising to reduce its dependence on fees from merchants. Marketing makes up 10% of Klarna’s overall revenue, having jumped 131% in 2022 from a year ago. 

    Klarna is one of a slew of buy now, pay later firms that let people split the cost of their purchases over a period of monthly installments, interest-free. The firm makes its income by charging a small fee on each transaction for retailers offering its payment method.
    The company is hoping to turn its fortunes around after a brutal year in which it cut its valuation by 85% to $6.7 billion, laid off over 10% of its workforce, and reported a $1 billion loss.
    Sandstrom said he expects Klarna will reach profitability on a monthly basis by the summer, echoing messaging from CEO Sebastian Siemiatkowski late last year.
    “The growth we’re seeing now is sustainable,” he said. “Going forward, I think AI is going to play a big role in the efficiency gains we’re seeing.”
    He added that Klarna is hiring for engineers to drive its AI efforts — but that the “profile of people we’re looking for has changed quite dramatically in the last couple of months.”
    “What a single extremely talented engineer can achieve versus what we used to need an entire team for is massive,” Sandstrom said.
    Klarna and other buy now, pay later products proved popular during the onset of the Covid-19 pandemic. Online shopping became more prevalent as in-person spending opportunities were restricted.
    However, as the war in Ukraine stoked global inflation and sparked fears of a recession, central banks around the world raised interest rates, shaking investor sentiment around buy now, pay later platforms offering zero-interest credit.
    Meanwhile, buy now, pay later has come under scrutiny from regulators because of fears that it is pushing some consumers, particularly younger people, into arrears. In the U.K., the government has proposed new rules aimed at adding some friction to the process of applying for a buy now, pay later loan.
    WATCH: Bitcoin at $10,000 — or $250,000? Investors are sharply divided on 2023 More

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    Sony teases 2023 film slate, including R-rated ‘Kraven The Hunter’

    Sony Pictures’ upcoming “Kraven the Hunter” would mark the first R-rated Marvel film produced by the studio.
    Sony showed 14 minutes of “Spider-Man: Across the Spider-Verse” — due out June 2 — to CinemaCon audiences.
    Josh Greenstein, chairman & CEO of Sony’s Motion Picture Group, teased that the company would release 23 movies in 2023.

    Tom Holland is Spider-Man in the Sony-Marvel film “Spider-Man: No Way Home.”

    LAS VEGAS — CinemaCon kicked off Monday with a major announcement from Sony Pictures — its upcoming “Kraven the Hunter” would mark the first R-rated Marvel film produced by the studio.
    The reveal came during the company’s presentation at the annual convention for Hollywood studios and movie theater owners in Las Vegas, in which Sony unveiled new footage and trailers from its upcoming slate, including “Spider-Man: Across the Spider-Verse,” “Gran Turismo” and “No Hard Feelings.”

    “F— yes, it’s rated R,” said Kraven himself Aaron Taylor-Johnson in a pretaped teaser for the film before Sony showed the first trailer for the profane and bloody action flick.
    Kraven wouldn’t be the first R-rated superhero flick to hit theaters in the last decade. Fans of the genre have been treated to “Logan,” “Deadpool,” “Watchmen” and “The Suicide Squad” in recent years from 20th Century Fox (now owned by Disney) and Warner Bros. Discovery. But it opens the door for Sony to develop darker, bloodier and more mature films within the Spider-Man universe — namely, around the fan favorite character Venom.
    Sony currently owns the film rights to Spider-Man and his cavalcade of villains and has found success in alternative universe productions that fall outside Disney’s Marvel Cinematic Universe. The companies have partnered on three MCU standalone Spider-Man films featuring Tom Holland in the spidey suit and have granted Disney permission to use the character in its ensemble films.
    In 2023, the studio will have a sequel to its Oscar-winning animated feature “Spider-Man: Into the Spider-Verse.” On Monday, the company shared an extended look at “Spider-Man: Across the Spider-Verse,” in which Miles Morales reunites with Gwen Stacy after becoming Brooklyn’s full-time friendly neighborhood Spider-Man.
    He’s catapulted into the Multiverse where he encounters a team of Spider-People charged with protecting it. When the heroes clash on how to handle a new threat, Miles finds himself pitted against the other Spiders.

    Sony showed 14 minutes of the film — due out June 2 — to CinemaCon audiences, who laughed and cheered for the uniquely animated feature.
    Josh Greenstein, president of Sony Pictures’ Motion Picture Group, teased that the company would release 23 movies in 2023, after being introduced via video by Will Smith and Martin Lawrence, who are currently filming “Bad Boys 4.”
    Sony showed the opening clip of “Dumb Money,” a film by Craig Gillespie about how an everyday investor played by Paul Dano flipped the script on Wall Street, placing all his savings into GameStop in 2021. The film due out in October also stars Sebastian Stan, Seth Rogen, Pete Davidson, Shailene Woodley, America Ferrera, Anthony Ramos, Vincent D’Onofrio, Dane DeHaan and Nick Offerman.
    It followed with trailers for “Insidious: The Red Door,” due out in July, “The Machine,” coming in May and “Gran Turismo,” hitting screens in August.
    Sony also showcased a clip from Jennifer Lawrence’s upcoming R-rated drama “No Hard Feelings” to raucous applause. It also teased an R-rated comedy “Anyone But You” starring Sydney Sweeney and Glen Powell as well as a sequel to “Ghostbusters: Afterlife.”
    After accepting CinemaCon’s Lifetime Achievement Award, Denzel Washington brought on stage Antoine Fuqua and Dakota Fanning to show a trailer of “The Equalizer 3.”
    “You can see at Sony we are not f—ing around,” said Tom Rothman, chairman and CEO of Sony Pictures’ Motion Picture Group, closing out the presentation.
    He revealed that Apple and Ridley Scott’s “Napoleon” will be distributed by Sony. The film, due out at Thanksgiving, will have a “robust window,” Rothman promised.
    “Hold onto your tri-cornered hats,” he teased before showing the first footage of the war epic, which recieved thunderous applause. More

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    Standard Chartered CEO warns of risks in the banking sector that haven’t ‘come home to roost’

    Standard Chartered’s chief executive warned Monday that the banking sector may face fresh issues.
    Bill Winters said there could be other issues that “come home to roost in some form of a crisis” as imbalances in some banks are exposed by inflation and higher interest rates.
    “I think we can put the crisis behind us. I don’t think we can put the issue behind us,” Winters told CNBC’s Joumanna Bercetche.

    Standard Chartered’s chief executive warned Monday that the banking sector may face fresh issues, even as the immediate risks from last month’s market turmoil have subsided.
    Bill Winters said other issues could “come home to roost in some form of a crisis” as imbalances in some banks are exposed.

    “I think we can put the crisis behind us. I don’t think we can put the issue behind us,” Winters told CNBC’s Joumanna Bercetche.
    Swift intervention by regulators last month prevented the collapse of Silicon Valley Bank — and later, Credit Suisse — from escalating into a wider banking crisis.
    But Winters cautioned that the “dramatic change in the macro-economic environment” — namely, rapid interest rate hikes aimed at taming soaring inflation — had accentuated existing issues at some lenders, which could yet play out.
    “That exposed some underlying flaws in business models, or exacerbated flaws that we knew were there but maybe didn’t appreciate how serious they were,” he said.

    There are other imbalances … that haven’t come home to roost in some form of a crisis.”

    Bill Winters
    chief executive, Standard Chartered

    “Those flaws are still there,” Winters added.

    “There are other imbalances that built up during this long period of very low interest rates that haven’t come home to roost in some form of a crisis. It’s incumbent on us to understand where those are to try and anticipate the changes that can come,” he said.
    Winters commended the “highly impactful” work of both U.S. and Swiss central bankers in stemming wider contagion.
    However, he noted that the episode also highlighted some regulatory shortcomings, which would need to be addressed with caution and consideration.
    “There were clearly some regulatory gaps that were highlighted through this, and I have no doubt that we’ll close the specific gaps that have been identified,” he said.
    “I think there’s a risk that we’ll react now and try to close every gap as if everybody had an equal gap to begin with, and that’s not the case,” he added.
    “I think we could burden the economy with a tremendous amount of excess regulation in response to this if we’re not careful.”
    Standard Chartered, which makes most of its profit in Asia and emerging economies, is set to report earnings Wednesday. Last quarter, the bank reported a 28% rise in annual pretax profit as global interest rate hikes boosted its lending revenue. More

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    Coinbase sues SEC after months of silence from federal regulator

    Coinbase took legal action against the SEC on Monday, asking a federal judge to force the regulator to share its answer on Coinbase’s July 2022 petition on whether existing securities rule-making processes could be extended to the crypto industry.
    The 2022 petition didn’t receive a specific public response from the SEC, which has pursued a spate of enforcement actions against individuals and entities in the crypto industry.
    Coinbase was the subject of a Wells notice from the SEC in March, a formal warning that an enforcement action against the exchange could be expected.

    Employees of Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, watch as their listing is displayed on the Nasdaq MarketSite jumbotron at Times Square in New York, April 14, 2021.
    Shannon Stapleton | Reuters

    Crypto exchange Coinbase filed suit against the Securities and Exchange Commission on Monday, asking that the regulator be forced to publicly share its answer to a months-old petition on whether it would allow the crypto industry to be regulated using existing SEC frameworks.
    The July 2022 petition asked that the SEC “propose and adopt rules to govern the regulation of securities that are offered and traded via digitally native methods,” referring to digital assets like cryptocurrencies.

    The SEC did not offer a specific public response to Coinbase’s petition, but in recent months has aggressively ramped up enforcement actions and warnings against crypto exchanges, including Coinbase.
    “From the SEC’s public statements and enforcement activity in the crypto industry, it seems like the SEC has already made up its mind to deny our petition. But they haven’t told the public yet. So the action Coinbase filed today simply asks the court to ask the SEC to share its decision,” Coinbase chief legal officer Paul Grewal said in a blog post.
    Since January, the SEC has taken action against crypto exchanges Bittrex & Gemini, crypto lender Genesis, and a number of individual actors accused of manipulating crypto assets, including crypto entrepreneur Justin Sun and disgraced Terraform Labs founder Do Kwon.
    The move is Coinbase’s first formal salvo against the regulator, a little over a month after it was warned by the SEC of pending legal action through a Wells notice.
    “Coinbase does not take any litigation lightly, especially when it relates to one of our regulators. Regulatory clarity is overdue for our industry,” Grewal said in the blog post. “Yet Coinbase and other crypto companies are facing potential regulatory enforcement actions from the SEC, even though we have not been told how the SEC believes the law applies to our business.”

    The SEC did not immediately return a request for comment.
    WATCH: Crypto needs regulatory clarity, industry advocate says More

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    NBCUniversal faces a set of company-defining decisions as CEO Jeff Shell departs

    Jeff Shell announced he was resigning as NBCUniversal CEO on Sunday after an inappropriate relationship with an employee.
    NBCUniversal faces several key decisions in the coming 12 to 24 months around Hulu, the NBA and a potential merger with Warner Bros. Discovery.
    Comcast CEO Brian Roberts will have to decide if he wants to replace Shell with an internal or external CEO or leave the job with current Comcast president Mike Cavanagh.

    (L-R) Michael Cavanagh, then-chief financial officer of Comcast, talks with Brian Roberts, chief executive officer of Comcast, as they arrive for the annual Allen & Company Sun Valley Conference, July 9, 2019 in Sun Valley, Idaho.
    Drew Angerer | Getty Images

    As the shock wears off on the sudden departure of NBCUniversal Chief Executive Officer Jeff Shell, executives at NBCUniversal’s parent company, Comcast, will need to make decisions on a handful of major items that will determine the company’s future in the next 12 to 24 months.
    Shell announced he was departing the company immediately Sunday after admitting to an inappropriate relationship with an NBCUniversal employee. Mike Cavanagh, Comcast’s president, will run the NBCUniversal division, though it’s unclear for how long. While Cavanagh has been at Comcast since 2015, serving as the company’s chief financial officer before his promotion to president in October, his background isn’t running large media businesses. Cavanagh was a banker for more than 20 years before joining Comcast.

    Shell’s departure comes at a particularly crucial time for the future of the news and entertainment company. While Shell was never the ultimate decision-maker at Comcast — that job falls to CEO Brian Roberts, whose family controls the company — his input and vision helped dictate the company’s pathway through streaming, sports rights and acquisitions.
    NBCUniversal is staring at big decisions in all three of those categories in the coming months.

    The Hulu decision

    In 2019, NBCUniversal agreed to an unusual deal with Disney, allowing it to sell its 33% stake in Hulu in January 2024 at a valuation of at least $27.5 billion. But comments from Disney CEO Bob Iger earlier this year have put Disney’s motivation to buy the remainder of Hulu in doubt.
    “Everything is on the table,” Iger told CNBC’s David Faber in February, suggesting Disney could buy the remainder of Hulu or sell its 66% stake — conceivably to Comcast.
    Shell was a big fan of Hulu and thought it could supercharge NBCUniversal’s streaming efforts, according to people familiar with his thinking. Hulu ended 2022 with 48 million subscribers, more than doubling the number of customers paying for NBCUniversal’s flagship streaming service, Peacock, which topped 20 million in January. Both streaming services are U.S.-based. Uniting Hulu’s ownership could allow a media company to extend the brand globally, adding tens of millions more subscribers.

    Acquiring Hulu’s 66% stake from Disney could cost Comcast more than $20 billion. Roberts will continue to be the ultimate decider on such a move. Losing NBCUniversal’s top operator may give Roberts some pause on a deal. Or, perhaps, it could spur Roberts to find new leadership through a large acquisition.

    NBA rights

    NBC Sports is interested in bringing the National Basketball Association back to NBC, its broadcast TV home from 1990-2002, CNBC reported in February.
    It’s unclear if NBC will actually get a shot at buying the rights, as Disney and Warner Bros. Discovery have exclusive negotiating rights with the NBA until early next year. But if the NBA decides it wants NBC as a partner, the media company will have to pay billions per year for the privilege. The NBA is looking for a substantial increase in current rights payments, which are $1.4 billion annually for Disney and $1.2 billion for Warner Bros. Discovery.
    NBCUniversal also owns several regional sports networks, whose own long-term business is in question as the NBA and Major League Baseball rethink how to broadcast local games amid the bankruptcy of Sinclair’s Diamond Sports Group.
    Mark Lazarus was promoted to head of NBCUniversal Television and Streaming in May 2020. He has overseen NBC Sports Group for more than a decade. Roberts and Cavanagh can continue to rely on Lazarus and head of NBC Sports Pete Bevacqua for future media rights moves.

    Merging with Warner Bros. Discovery

    The elephant in the room with NBCUniversal is the frequent speculation in media circles that a merger with Warner Bros. Discovery could be coming in the next two years. Warner Bros. Discovery must wait two years before completing a sale for tax purposes following AT&T’s divestiture of WarnerMedia into Discovery Communications.
    If a Comcast-Warner Bros. Discovery deal were to happen, Shell may not have had a role at the future company. Warner Bros. Discovery CEO David Zaslav could run the combined media assets.
    Warner Bros. Discovery board member John Malone told CNBC in 2021 “there’s no question” Roberts wanted to buy WarnerMedia but didn’t because of regulatory pushback.
    “My comment to Brian was that this is the pickle out of the jar,” Malone said in 2021. “If the regulatory environment permitted, down the road, all kinds of relationships could be contemplated between this enterprise that we’re creating and Brian’s enterprise. I think there are many opportunities for this Discovery-[WarnerMedia] enterprise to work with NBCUniversal to develop successful businesses.”
    It’s possible a Republican presidential administration could be more welcoming to the idea of a merger. Market dynamics have also shifted since 2021, potentially helping to convince Roberts and Zaslav to attempt a merger. Both Comcast and Warner Bros. Discovery are smaller companies after losing substantial value in 2022.
    Given Cavanagh’s background in finance, rather than operations, Roberts may signal his plan to merge NBCUniversal if he keeps Cavanagh in the role rather than finding an outside replacement. It may make little sense for Roberts to choose a new leader for NBCUniversal if that person will simply steer the company into a merger.
    Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.
    WATCH: CNBC’s ‘Squawk on the Street’ crew share their thoughts following ouster of NBCU CEO More

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    Tucker Carlson leaves Fox News in wake of Dominion defamation settlement

    Fox News announced it parted ways with right-wing host Tucker Carlson. His last program aired Friday.
    The host is leaving Fox News days after the network reached a settlement with Dominion Voting Systems in its defamation lawsuit.
    Carlson’s program, “Tucker Carlson Tonight,” has long been one of Fox’s top rated programs.

    Right-wing prime-time host Tucker Carlson is leaving Fox News immediately, the cable network announced Monday.
    The announcement came days after Fox News’ parent company settled Dominion Voting Systems’ defamation lawsuit for $787.5 million. The company’s hosts were not required to talk about the lawsuit, or make an apology for it, as part of the settlement, CNBC previously reported.

    “FOX News Media and Tucker Carlson have agreed to part ways,” the company said in a statement Monday. “We thank him for his service to the network as a host and prior to that as a contributor.”
    There will be no send-off for Carlson, as his last program aired Friday. Carlson had signed off Friday saying he would be back Monday. Carlson’s program, “Tucker Carlson Tonight,” has long been one of Fox’s top rated programs.
    The company wouldn’t comment beyond the release, or around whether Carlson was being taken off air in response to the Dominion defamation case. Fox News did not offer a statement on Carlson’s behalf.
    Fox Corp. Class A shares closed down about 3% on Monday.
    News of Carlson’s exit came on the same day that CNN anchor Don Lemon said he’d been fired from the network and a day after NBCUniversal CEO Jeff Shell was dismissed for having an inappropriate relationship with an employee.

    Carlson, 53, was among the Fox hosts and executives who were questioned as part of the Dominion lawsuit. Several of his emails and texts were part of the evidence released before the settlement, as well. In addition, Dominion’s attorneys had listed about 20 episodes that appeared on Fox’s networks as evidence of defamation, with Carlson’s among them.
    Other hosts who were deposed and part of the evidence included Maria Bartiromo, Jeanine Pirro, Sean Hannity and Laura Ingraham, as well as former host Lou Dobbs.
    Dominion sued Fox and its networks, arguing the networks “intentionally and falsely” blamed Dominion for the 2020 loss of former President Donald Trump to President Joe Biden by airing unsubstantiated claims that the company’s machines rigged the election.
    Carlson was among the top anchors who expressed disbelief and skepticism behind the scenes about comments being made on air, particularly by guests like pro-Trump attorney Sidney Powell.
    “It’s unbelievably offensive to me. Our viewers are good people and they believe it,” Carlson said in one text message in the weeks after the election, court papers show.
    Dominion pointed to the drop in Fox’s audience following election night, when the network called Arizona for Biden. Behind the scenes, Carlson and his fellow hosts expressed “the threat to them personally.” In a message to his producer on Nov. 5, Carlson said: “We worked really hard to build what we have. Those f—-ers are destroying our credibility. It enrages me.” 
    In the weeks following the election, Fox hosted Powell, as well as Trump attorney Rudy Giuliani and MyPillow CEO Mike Lindell on air at which point they repeated the false claims that Dominion rigged the election.
    And while Carlson recently hosted Trump on Fox News in recent weeks after his indictment in New York, Carlson had called Trump “a demonic force” after Jan. 6, when a violent mob of Trump supporters breached the U.S. Capitol.
    Carlson was among the witnesses slated to testify had the lawsuit gone to trial. On that list of witnesses was also Abby Grossberg, a former Fox producer who worked on the shows of Bartiromo and Carlson.
    In the weeks leading up to the scheduled trial start date, Grossberg came forward alleging she was coerced into providing misleading testimony as part of the Dominion lawsuit. Fox has said Grossberg made “unmeritorious legal claims, which are riddled with false allegations against Fox and our employees.”
    Grossberg’s attorneys said in court papers that she was fired by Fox in retaliation. She has filed lawsuits against Fox in New York and Delaware, accusing the network of discrimination.
    Grossberg cheered Carlson’s departure in a statement Monday, saying, “This is a step towards accountability for the election lies and baseless conspiracy theories spread by Fox News, something I witnessed firsthand at the network, as well as for the abuse and harassment I endured while Head of Booking and Senior Producer for Tucker Carlson Tonight. I think this is great for America! It’s a big win for viewers of cable news, not just those who watch Fox.”
    Carlson took over Bill O’Reilly’s prime time slot on Fox in 2017 after O’Reilly left the network under controversy. O’Reilly has been accused of sexual harassment by multiple former Fox employees. He has denied the allegations.
    While the Dominion lawsuit was unlikely to affect Fox’s business, it was unclear the toll it would take on its programming and hosts.
    Shortly after Smartmatic, another voting tech company, sued Fox for defamation in 2021, Dobbs’ weekday program on Fox Business was canceled. Dobbs is named as a defendant in the Smartmatic lawsuit, which is ongoing and isn’t slated to go to trial until 2025. At the time, Fox said the show’s cancellation was in the works before the lawsuit.
    Disclosure: NBCUniversal is the parent company of CNBC. More