Kyle Sandilands has reached a $12.09 million settlement with former employer ARN, bringing an end to legal action between the broadcaster and the radio personality.

In a statement to the market on Monday morning, ARN said Sandilands would receive $3 million of the settlement in July 2026, with the remaining amount to be paid in monthly instalments through to June 2029.

Sandilands has told the company he “intends to pursue independent media opportunities”.

Under the agreement, ARN will also supply Sandilands with “advertising services on ARN’s partner platforms”, valued at $1.5 million over the next three years.

ARN chief executive Michael Stephenson said the agreement closes out the dispute.

“This agreement brings certainty for ARN and resolves the legal dispute,” Stephenson said.

He added: “ARN remains focused on executing its strategy, including driving a leaner, more efficient operating model, strengthening its core radio network and continuing to invest in digital capabilities and long-term growth.”

The settlement follows legal action launched by Sandilands after he ended his $100 million KIIS FM contract earlier this year.

It resolves one of two lawsuits filed against ARN after the collapse of the Kyle and Jackie O Show in February, which followed an on-air clash between its two stars.

Jackie ‘O’ Henderson also sued her former employer, seeking compensation of at least $82.25 million and alleging her termination breached the Fair Work Act.

The pair’s legal battles stemmed from an explosive dispute in which Sandilands criticised Henderson on-air over her “obsession” with astrology and challenged her work ethic, sparking a confrontation both on and off the air.

That breakdown brought their 25-year on-air partnership to an end.

Henderson viewed the incident as the final straw in what she alleged was ongoing bullying by her co-host. She lodged a formal complaint with ARN, saying she could no longer work with Sandilands and did not feel safe doing so.

ARN then suspended Sandilands for two weeks over his conduct, describing it as “an act of serious misconduct” and a breach of contract.

The network later terminated Henderson’s existing contract and offered her a different show within the company.

The split between KIIS FM’s biggest stars erupted just one year into a $200 million, 10-year deal with ARN, sending both presenters into court action against their former employer.

The Sydney duo had been described as “arguably Australia’s most famous and possibly most successful radio show of all time”, but they had difficulty winning over Melbourne audiences after their syndication expansion.

Despite years of dominance in Sydney and consecutive top finishes in FM radio surveys, the show ended its first year in Melbourne in sixth place.

Industry figures have pointed to that result as a turning point, with pressure mounting after the timeslot lost 140,000 listeners in Victoria.

Sandilands has said he plans to return to broadcasting in one form or another, while Henderson’s future in radio remains less clear.