Sacked shock jock Kyle Sandilands will have to make do with a lot less money than he wanted in a breakthrough deal with his former employer.

ARN announced on Wednesday the details of its settlement, which falls far short of the $85 million Sandilands had demanded after his $100 million, 10-year contract was torn up.

The media company said it had agreed to pay Sandilands a cash settlement of $12.09 million.

The first $3 million would be payable in July and the remainder monthly until June 2029.

“Mr Sandilands and his related entities will not be providing services to ARN in any capacity going forward,” ARN said in a statement to the ASX.

“Mr Sandilands has advised ARN that he intends to pursue independent media opportunities.”

As part of the settlement, ARN will also provide Sandilands with advertising services on its partner platforms of $1.5 million over the next three years.

“The parties have also agreed to a net revenue share arrangement, providing ARN a contribution of 19.9 per cent from Mr Sandilands’ new venture for a period of up to three years from commencement, subject to agreed revenue thresholds and caps,” ARN said.

Sandilands will not be allowed to work with direct ARN competitors for nine months from the date of settlement, expiring in March 2027.

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

“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 breakthrough between Sandilands and ARN avoids a costly blockbuster trial that would have delved into the weeds and could have been embarrassing.

Sandilands’ former radio partner Jackie Henderson’s litigation against ARN remains unresolved.

Sandilands and Henderson both faced counter-suits from their former employer, which claimed they cost it key advertising revenue through their sacking.

In documents filed in the Federal Court, the radio network accused Sandilands and Henderson of breaching their contracts and making the future of their KIIS FM breakfast show untenable, saying they were liable for the subsequent loss of advertising revenue.

The radio duo’s highly public bust-up moved into the legal arena after an on-air exchange between the star pair in February, when Sandilands accused Henderson of being “off with the fairies”.

The comments prompted her to say she could no longer work with him.

In court documents, ARN said Sandilands was liable for legal costs and lost revenue because he had breached his contract through serious misconduct.

The radio giant claimed Henderson was also liable for the same costs because she breached her agreement by bringing the show to an end.

Both presenters had sued ARN separately for breaches of their respective contracts, with Henderson claiming she should not have been fired just for refusing to work with Sandilands.

Henderson alleged in court documents she complained to station management multiple times over about six months about comments from Sandilands.

He allegedly said some of Henderson’s comments were “weird, psychological bulls–t” and her belief in “hype words” was having a bad effect on her dating life.

But Sandilands’ suit claimed he did not deserve to have his contract torn up because he had committed no serious misconduct.

Both had sought the full payout of the remainder of their 10-year, $100 million contracts, which were signed at the end of 2023.