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The twist behind Kyle & Jackie O's new $200 million KIIS FM deal

The radio duo will reportedly break into another market for the very first time.

After a 'long negotiation' period, Kyle Sandilands and Jackie O Henderson have reportedly now secured a $200 million deal to continue their KIIS 106.5 breakfast show with the Australian Radio Network (ARN) for another 10 years.

According to the Financial Review, the pair will also now take on the Melbourne market for the first time ever – with The Kyle & Jackie O Show set to syndicate there as early as next year.

That would leave the future of KIIS 101.1 Melbourne's current breakfast hosts, Jason Hawkins and Lauren Phillips, in a precarious spot, as The Kyle & Jackie O Show's syndication would be on at the same time as their Jase & Lauren breakfast show.

Kyle and Jackie O
Kyle and Jackie O have signed a $200 million contract. Photo: Instagram/Kyle & Jackie O

In August when rumours first started to swirl this may happen, Jase made clear it was a sensitive subject by snapping over comments made by Brendan Fevola on his own Fox FM radio show.

Jase said Fevola discussing the rumours was a 'grub move' and ranted he needs to 'think before he speaks'.

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Meanwhile, Yahoo Lifestyle understands that Kyle and Jackie O's contract negotiations this year have “unsettled” Dave Hughes, Ed Kavalee and Erin Molan, who have a rival Sydney breakfast radio show on 2Day FM with Southern Cross Austereo (SCA).

In July, it was reported by Mumbrella that SCA had been “in talks” with Kyle and Jackie O and “pretty aggressive” in trying to bring them back to 2Day FM – the station the pair left in 2013.

Hughesy and Erin
It's said to have 'unsettled' Hughesy, Ed and Erin. Photo: 2Day FM

The reports at the time alluded to the fact that SCA were seeking to replace Hughesy, Ed & Erin with Kyle and Jackie O, despite the network then being unsuccessful in winning them back.

It appears this has left a sour taste in Hughesy, Ed & Erin's mouths, with a source at 2Day FM saying the reports “unsettled” the talent and several staffers who feared for their jobs. Hughesy, Ed & Erin were noticeably absent from the Australian Radio Awards in Sydney on Saturday night.

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