Why O’Reilly’s firing hasn’t hit Fox stock

Following Wednesday’s confirmation of Bill O’Reilly’s ouster, the impact of losing the long-running No. 1 cable news show on Fox News has been debated widely.

The show, which drew in nearly four million average nightly viewers, was seen as the flagship show for the conservative cable station, drawing in close to $200 million in advertising revenue.

However, the stock of Fox News’ parent company hardly budged, seemingly yawning off the news. 21st Century Fox (FOXA) closed down 0.88% on the day the news of O’Reilly’s exit hit, only slightly under-performing the broader market. And Thursday, the stock rose over 2%, bringing its year-to-date performance to over 10%, outperforming the S&P (^GSPC) and media peers, including CBS (CBS) and Time Warner (TWX).

So what gives?

21st Century Fox is a big company

While Fox News has dominated headlines of late, it makes up just 25% of the parent company’s cable division.

The cable division, which includes domestic and international stations beyond Fox News, generates about 75% of the company’s earnings.

21st Century Fox also gets 15% of earnings from filmed entertainment and 11% from broadcast television, both growth areas.

In film, Disney (DIS) is the dominant force in the space. But Fox has a solid slate ahead, including Deadpool 2, Kingsman 2, X-Men (Logan) and Avatar sequels expected within the next couple of years, to name a few.

Broadcast also continues to benefit from successful series like Empire along with Brooklyn Nine-Nine, New Girl and The Simpsons. (Unscripted series include Hell’s Kitchen and Master Chef.)

Overall, 21st Century Fox’s focused growth assets—including cable, film and broadcast—have benefited from Rupert Murdoch’s 2013 split of News Corp (the company he originally founded in 1979) into two. The company spun off its higher-growth film and TV business (21st Century Fox) from News Corp (NWSA), which is dominated by print assets, including Dow Jones (and the Wall Street Journal), The New York Post, The Sun, and HarperCollins Publishers.

This move toward more focused businesses reflected a theme in the industry, including Viacom (VIAB) splitting off CBS (CBS) in 2006 and Time Warner (TWX) spinning off Time Inc (TIME) in 2014.

Insulating the television business from the newspaper industry also helped 21st Century Fox distance itself from the hacking scandal that surrounded the News of the World, the British newspaper that News Corp shut down in 2011.

21st Century Fox has been focused on growth, investing organically and also pursuing outside opportunities (though its 2014 bid to acquire Time Warner for $80 billion was rejected).