"After a thorough and careful review of the allegations, the Company and Bill O'Reilly have agreed that Bill O'Reilly will not be returning to the Fox News Channel".
The New York Times reported earlier this month that O'Reilly and Fox News parent company 21st Century Fox paid a total of $13 million to stop women from speaking out against him or pursuing litigation over sexual harassment.
Both Fox and O'Reilly confirmed O'Reilly's departure from the network earlier Wednesday.
The situation mirrors the ousting of Fox News CEO Roger Ailes previous year after several female employees accused him of sexual harassment.
That certainly could happen, though it probably won't be easy.
The statement from 21st Century Fox is coming after growing public resentment about O'Reilly's alleged behavior.
O'Reilly has written more than two dozen books, according to his official website.
How did the allegations affect "The O'Reilly Factor"? With a profit center gone, 21st Century Fox stock fell nearly 1 percent Wednesday in heavy trading.
O'Reilly's downfall comes less than a year after the exit of Fox News founder and CEO, Roger Ailes, after it emerged he too was the subject of a series of sexual harassment lawsuits.
O'Reilly's exit, which was first reported by NY magazine, follows that of former Fox News Chairman Roger Ailes, who was forced to resign in July after being accused of sexual misconduct by a number of women, including former anchor Gretchen Carlson. But now O'Reilly will be replaced by Tucker Carlson. He thanked his viewers and noted the success Fox had achieved.
"Mission accomplished", said Keith Olbermann, who frequently tweaked O'Reilly on an MSNBC show that competed in the same time slot for several years.
Fox also has a big financial safety cushion in the fees cable companies pay the network, which dwarf its ad revenue, according to Nomura media analyst Anthony DiClemente.
Bill O'Reilly will not return to host The O'Reilly Factor amid accusations of sexual harassment against him, 21st Century Fox has announced. It's home to movie and TV studios; a slew of sports and other cable channels; and the Fox broadcast network and shows like "The Simpsons", "Family Guy", and its latest hit, "Empire".
O'Reilly is also one of the country's most popular nonfiction authors. Carlson's own entry into Fox News' network took place after another major shakeup. Its previous effort died in 2011, a casualty of the phone-hacking scandal at Rupert Murdoch's British newspapers.
"What Rush Limbaugh was to talk radio, Bill O'Reilly has been to conservative television", said Mark Feldstein, communication professor at the University of Maryland.
The U.S. Attorney's office in NY is investigating how 21st Century Fox handled the Roger Ailes scandal.
"Lastly, and most importantly, we want to underscore our consistent commitment to fostering a work environment built on the values of trust and respect", the 21st Century Fox email said Wednesday. For that reason, some female employees were uncomfortable with O'Reilly staying on, and pressure escalated once the company asked a law firm to examine the allegations.