Roger Ailes Leaves Fox News, and Rupert Murdoch St
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Posted On: 07/22/2016 7:33:28 AM
Roger Ailes Leaves Fox News, and Rupert Murdoch Steps In
In the dark for days, Fox News staffers finally got word on Thursday about the future of their network.
The news was delivered in person by Rupert Murdoch, the 85-year-old media mogul who started Fox News with Roger Ailes 20 years ago.
It was an unexpected visit, and with stunned employees listening in Fox’s Midtown Manhattan headquarters, Mr. Murdoch announced that Mr. Ailes was out as chairman and chief executive. Mr. Murdoch himself would be taking over Fox News in the interim.
Mr. Ailes was not there. Mr. Murdoch had barred him from the building starting on Wednesday, according to one person briefed on the matter. The person said Fox News’s parent company, 21st Century Fox, had learned Mr. Ailes was trying to get some of his on-air stars to criticize those who cooperated with investigators looking into accusations of sexual harassment against him.
The announcement was the culmination of an unsettling 15-day stretch for the network that began on July 6, when Gretchen Carlson, a former Fox anchor, filed a lawsuit accusing Mr. Ailes of sexual harassment. That led to an internal investigation by 21st Century Fox.
It was a stunning fall for one of the most powerful people in the media industry, who built Fox News into a ratings juggernaut and a hugely influential platform for Republican politics.
Mr. Ailes will walk away with about $40 million as part of a settlement agreement, according to two people briefed on the matter, which essentially amounts to the remainder of his existing employment contract through 2018. As part of the agreement, Mr. Ailes cannot start a competitor to Fox News. He will continue to make himself available as an adviser to Mr. Murdoch on an interim basis, the two people said, though he will not be directly involved with Fox News or 21st Century Fox.
Continue reading the main story
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In a statement, Mr. Murdoch praised Mr. Ailes, 76, and his “remarkable contribution” to the company, without making mention of the sexual harassment scandal that felled him.
“Roger shared my vision of a great and independent television organization and executed it brilliantly over 20 great years,” Mr. Murdoch said in a statement. “Fox News has given voice to those who were ignored by the traditional networks and has been one of the great commercial success stories of modern media.”
Among those who cooperated with investigators looking into the allegations against Mr. Ailes was one of his on-air stars, Megyn Kelly. She had been among a small group of employees who resisted a campaign to rally support for Mr. Ailes, which came to be viewed as a “loyalty test,” according to several staff members, who declined to be identified.
Ms. Kelly told investigators that she received repeated, unwanted advances from Mr. Ailes, which she rejected, according to two people briefed on her account. The entreaties, which happened in the early part of her career at Fox, bothered Ms. Kelly to the point that she retained a lawyer because she worried that her rejections would jeopardize her job, though they ultimately did not.
In a statement earlier this week, Mr. Ailes’s lawyer said he never sexually harassed Ms. Kelly. During the investigation, led by the law firm Paul, Weiss, Rifkind, Wharton & Garrison, around 10 women have come forward with stories of inappropriate conduct from Mr. Ailes while at Fox News, according to a person briefed on the investigation.
In a letter to Mr. Murdoch on Thursday, Mr. Ailes wrote: “Having spent 20 years building this historic business, I will not allow my presence to become a distraction from the work that must be done every day to ensure that Fox News and Fox Business continue to lead our industry.”
A copy of the letter was provided by Mr. Ailes’s lawyer, Susan Estrich. She did not respond to further requests for comment.
Though Mr. Ailes made no mention of the investigation into his workplace behavior or the sexual harassment lawsuit, he said, pointedly: “I take particular pride in the role that I have played advancing the careers of the many women I have promoted to executive and on-air positions. Many of these talented journalists have deservedly become household names known for their intelligence and strength, whether reporting the news, fair and balanced, and offering exciting opinions on our opinion programs.”
The terms of Mr. Ailes’s departure were negotiated over several chaotic days that transfixed the media world and spurred intense coverage. Mr. Murdoch, on vacation in the French Riveria with his wife, Jerry Hall, had been working in tandem with his sons, James and Lachlan, with whom he leads 21st Century Fox, but it was not until he returned to New York that a deal was reached.
Mr. Murdoch will assume the role of chairman and will be an interim chief executive of the Fox News channel and Fox Business Network until a permanent replacement for Mr. Ailes is found. His interim role is intended to ensure stability during the rest of the presidential race, and to be taken as a signal that the network is not on the verge of a wide-ranging overhaul, said a person briefed on the matter. Mr. Murdoch plans to be “extremely engaged” and had already been attending some news meetings because Mr. Ailes has had health issues recently, the person said.
In the same statement as their father, James and Lachlan Murdoch praised Mr. Ailes but alluded to the trouble at Fox News, saying they were committed “to maintaining a work environment based on trust and respect.” Lachlan joined his father in the newsroom on Thursday, but James was not present because of a previously scheduled business trip in Europe.
Mr. Ailes’s position atop Fox News was thrown into doubt two weeks ago after Ms. Carlson filed a sexual harassment suit against him. Mr. Ailes denied the accusations, but 21st Century Fox began the internal review and, earlier this week, determined that he could no longer remain in the job.
The campaign to rally support for Mr. Ailes ultimately became a problem for him. It included declarations casting doubt on Ms. Carlson’s charges from hosts including Greta Van Susteren, Jeanine Pirro and Neil Cavuto, who in an op-ed described the accusations as “sick.”
Several female staff members had said on Wednesday that they feared that campaign was making younger female staff members with their own stories to tell too frightened to speak with investigators — something the investigators feared as well, people briefed on their inquiry said this week.
A friend of Ms. Kelly, who spoke on condition of anonymity, said that Ms. Kelly resisted pressure to support Mr. Ailes, and cooperated with the investigation so that those other staff members would “feel more comfortable coming forward to tell the truth.” Ms. Kelly has not spoken publicly about the matter.
On Thursday night, Kirsten Powers, a Fox contributor for 11 years, said: “While I understand loyalty, I was disappointed that so many senior members of Fox’s on-air team rushed to defend Roger in a way that seemed to prejudge an investigation into sexual harassment. I would hope that in 2016 people would know that just because you weren’t harassed, or didn’t witness harassment by a certain man, that doesn’t mean it didn’t happen.”
For hundreds of Fox employees gathered in Cleveland for the Republican National Convention, the week had been surreal. Those who left New York just days ago will return this weekend to a workplace turned upside-down.
“There are people in tears,” said Chris Wallace, the host of “Fox News Sunday.” “I shed mine a couple of days ago.” During an interview, Mr. Wallace’s anchor baritone occasionally grew faint; Bret Baier, his colleague, was also emotional.
Notably, Mr. Baier and his fellow Fox anchors Brit Hume and Ms. Van Susteren declined to say definitively whether they would remain at Fox, although Mr. Baier, after some hesitation, said: “I couldn’t be happier.” Several of the network’s most recognizable faces — including Bill O’Reilly, Ms. Kelly and Mr. Baier — are known to have contract clauses that allow them to leave the network if Mr. Ailes is not in charge.
The lawyer for Ms. Carlson, Nancy Erika Smith, released a statement that her client’s “extraordinary courage has caused a seismic shift in the media world.”
She added, “We hope that all businesses now understand that women will no longer tolerate sexual harassment, and reputable companies will no longer shield those who abuse women.”
In the dark for days, Fox News staffers finally got word on Thursday about the future of their network.
The news was delivered in person by Rupert Murdoch, the 85-year-old media mogul who started Fox News with Roger Ailes 20 years ago.
It was an unexpected visit, and with stunned employees listening in Fox’s Midtown Manhattan headquarters, Mr. Murdoch announced that Mr. Ailes was out as chairman and chief executive. Mr. Murdoch himself would be taking over Fox News in the interim.
Mr. Ailes was not there. Mr. Murdoch had barred him from the building starting on Wednesday, according to one person briefed on the matter. The person said Fox News’s parent company, 21st Century Fox, had learned Mr. Ailes was trying to get some of his on-air stars to criticize those who cooperated with investigators looking into accusations of sexual harassment against him.
The announcement was the culmination of an unsettling 15-day stretch for the network that began on July 6, when Gretchen Carlson, a former Fox anchor, filed a lawsuit accusing Mr. Ailes of sexual harassment. That led to an internal investigation by 21st Century Fox.
It was a stunning fall for one of the most powerful people in the media industry, who built Fox News into a ratings juggernaut and a hugely influential platform for Republican politics.
Mr. Ailes will walk away with about $40 million as part of a settlement agreement, according to two people briefed on the matter, which essentially amounts to the remainder of his existing employment contract through 2018. As part of the agreement, Mr. Ailes cannot start a competitor to Fox News. He will continue to make himself available as an adviser to Mr. Murdoch on an interim basis, the two people said, though he will not be directly involved with Fox News or 21st Century Fox.
Continue reading the main story
Related Coverage
Roger Ailes’s Exit Is Unlikely to Erode the Fox News Citadel JULY 20, 2016
Accused of Sexual Harassment, Roger Ailes Is Negotiating Exit From Fox JULY 19, 2016
MEDIATOR
Rogers Ailes Stares Into the Abyss From Atop the TV News World JULY 19, 2016
Fox News’s Convention Moment Overshadowed by Struggle Over Ailes’s Fate JULY 18, 2016
In a statement, Mr. Murdoch praised Mr. Ailes, 76, and his “remarkable contribution” to the company, without making mention of the sexual harassment scandal that felled him.
“Roger shared my vision of a great and independent television organization and executed it brilliantly over 20 great years,” Mr. Murdoch said in a statement. “Fox News has given voice to those who were ignored by the traditional networks and has been one of the great commercial success stories of modern media.”
Among those who cooperated with investigators looking into the allegations against Mr. Ailes was one of his on-air stars, Megyn Kelly. She had been among a small group of employees who resisted a campaign to rally support for Mr. Ailes, which came to be viewed as a “loyalty test,” according to several staff members, who declined to be identified.
Ms. Kelly told investigators that she received repeated, unwanted advances from Mr. Ailes, which she rejected, according to two people briefed on her account. The entreaties, which happened in the early part of her career at Fox, bothered Ms. Kelly to the point that she retained a lawyer because she worried that her rejections would jeopardize her job, though they ultimately did not.
In a statement earlier this week, Mr. Ailes’s lawyer said he never sexually harassed Ms. Kelly. During the investigation, led by the law firm Paul, Weiss, Rifkind, Wharton & Garrison, around 10 women have come forward with stories of inappropriate conduct from Mr. Ailes while at Fox News, according to a person briefed on the investigation.
In a letter to Mr. Murdoch on Thursday, Mr. Ailes wrote: “Having spent 20 years building this historic business, I will not allow my presence to become a distraction from the work that must be done every day to ensure that Fox News and Fox Business continue to lead our industry.”
A copy of the letter was provided by Mr. Ailes’s lawyer, Susan Estrich. She did not respond to further requests for comment.
Though Mr. Ailes made no mention of the investigation into his workplace behavior or the sexual harassment lawsuit, he said, pointedly: “I take particular pride in the role that I have played advancing the careers of the many women I have promoted to executive and on-air positions. Many of these talented journalists have deservedly become household names known for their intelligence and strength, whether reporting the news, fair and balanced, and offering exciting opinions on our opinion programs.”
The terms of Mr. Ailes’s departure were negotiated over several chaotic days that transfixed the media world and spurred intense coverage. Mr. Murdoch, on vacation in the French Riveria with his wife, Jerry Hall, had been working in tandem with his sons, James and Lachlan, with whom he leads 21st Century Fox, but it was not until he returned to New York that a deal was reached.
Mr. Murdoch will assume the role of chairman and will be an interim chief executive of the Fox News channel and Fox Business Network until a permanent replacement for Mr. Ailes is found. His interim role is intended to ensure stability during the rest of the presidential race, and to be taken as a signal that the network is not on the verge of a wide-ranging overhaul, said a person briefed on the matter. Mr. Murdoch plans to be “extremely engaged” and had already been attending some news meetings because Mr. Ailes has had health issues recently, the person said.
In the same statement as their father, James and Lachlan Murdoch praised Mr. Ailes but alluded to the trouble at Fox News, saying they were committed “to maintaining a work environment based on trust and respect.” Lachlan joined his father in the newsroom on Thursday, but James was not present because of a previously scheduled business trip in Europe.
Mr. Ailes’s position atop Fox News was thrown into doubt two weeks ago after Ms. Carlson filed a sexual harassment suit against him. Mr. Ailes denied the accusations, but 21st Century Fox began the internal review and, earlier this week, determined that he could no longer remain in the job.
The campaign to rally support for Mr. Ailes ultimately became a problem for him. It included declarations casting doubt on Ms. Carlson’s charges from hosts including Greta Van Susteren, Jeanine Pirro and Neil Cavuto, who in an op-ed described the accusations as “sick.”
Several female staff members had said on Wednesday that they feared that campaign was making younger female staff members with their own stories to tell too frightened to speak with investigators — something the investigators feared as well, people briefed on their inquiry said this week.
A friend of Ms. Kelly, who spoke on condition of anonymity, said that Ms. Kelly resisted pressure to support Mr. Ailes, and cooperated with the investigation so that those other staff members would “feel more comfortable coming forward to tell the truth.” Ms. Kelly has not spoken publicly about the matter.
On Thursday night, Kirsten Powers, a Fox contributor for 11 years, said: “While I understand loyalty, I was disappointed that so many senior members of Fox’s on-air team rushed to defend Roger in a way that seemed to prejudge an investigation into sexual harassment. I would hope that in 2016 people would know that just because you weren’t harassed, or didn’t witness harassment by a certain man, that doesn’t mean it didn’t happen.”
For hundreds of Fox employees gathered in Cleveland for the Republican National Convention, the week had been surreal. Those who left New York just days ago will return this weekend to a workplace turned upside-down.
“There are people in tears,” said Chris Wallace, the host of “Fox News Sunday.” “I shed mine a couple of days ago.” During an interview, Mr. Wallace’s anchor baritone occasionally grew faint; Bret Baier, his colleague, was also emotional.
Notably, Mr. Baier and his fellow Fox anchors Brit Hume and Ms. Van Susteren declined to say definitively whether they would remain at Fox, although Mr. Baier, after some hesitation, said: “I couldn’t be happier.” Several of the network’s most recognizable faces — including Bill O’Reilly, Ms. Kelly and Mr. Baier — are known to have contract clauses that allow them to leave the network if Mr. Ailes is not in charge.
The lawyer for Ms. Carlson, Nancy Erika Smith, released a statement that her client’s “extraordinary courage has caused a seismic shift in the media world.”
She added, “We hope that all businesses now understand that women will no longer tolerate sexual harassment, and reputable companies will no longer shield those who abuse women.”
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