| | | | -- This is being called a "resignation"
-- His departure is effective immediately
-- Rupert Murdoch is acting CEO
-- Ailes says he'll still "advise" Rupert
-- Last night, Fox had 7+ million viewers, #1 all across TV
-- No "talent exodus" seems imminent | | | A day for the history books | | | Dylan Byers emails: This is one of the most significant days in the modern history of the Republican party: Trump accepting its nomination for President of the United States, and Ailes stepping down from running the most powerful platform in conservative media... | | | Trump and Ailes are talking | | A little scoop I published this evening: Ailes and Trump have been counseling each other in multiple phone calls this week... They've had a friendly relationship for decades, of course... And now there's speculation that Ailes might seek to advise Trump in a more formal capacity...
Recall that when the Washington Examiner asked Trump about Carlson's allegations against Ailes earlier this month, Trump said, "I think they are unfounded just based on what I've read. Totally unfounded, based on what I read." This afternoon Hope Hicks checked with Trump and said he declined to comment on Ailes. Read more... | | | Ailes became a "distraction" | | Let's be honest: This is being called a "resignation," implying a choice, but Ailes was under tremendous pressure to step down. In his letter to Murdoch, Ailes said, "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."
Can you imagine how it felt to write those words? | | | "Consultant?" No, an "adviser" | | When Drudge broke the news (correctly this time) about Ailes' departure, he said Rupert was keeping him on as a "consultant" through 2018. Ailes himself told Murdoch he looks forward to "continuing to work with you as a consultant in building 21st Century Fox."
But a source in Murdochland immediately pushed back against Ailes' use of the word "consultant" -- demonstrating just how tense the exit talks must have been. Ailes will simply "be available to advise Rupert during the transition," the source said.
Within minutes, the version of Ailes' letter posted by Drudge was revised to replace "consultant" with "adviser..." | | | Once Megyn Kelly told investigators that Ailes harassed her a decade ago, Ailes' departure felt inevitable. Tonight Kelly did not respond to requests for comment as she entered the convention arena... | | | "Heartbreaking" -- or not | | Some Fox staffers DID talk with us this evening, and they expressed shock, sadness and disbelief about the sequence of events. Some said they believed that Ailes' exit was a power play by the Murdoch sons, who are said to dislike Ailes. If that's what it was, it worked. Here's our full story...
-- More: David Folkenflik reported that Fox host Martha MacCallum was "openly weeping at thought of his departure." And Brit Hume called the news "heartbreaking" in a tweet... | | | Extremely complex emotions | | | Dylan emails: The emotions within Fox News are extremely complex right now. First and foremost, people recognize that they are losing one of the most powerful and influential figures in their own lives -- the person who shaped and pushed their careers. But those that accept the allegations against him also recognize that he has done something wrong... | | | An "outrage" that he'll still be paid | | | Dylan adds: One inside source said some women at Fox were relieved that Ailes had been removed. But Ailes' accusers do not necessarily view this as a victory: Ailes will continue to "advise" Rupert and be paid by Fox, something many of them see as an outrage... | | | -- More: That sense of outrage is shared by others outside Fox. One representative tweet: "Over two dozen women have come forward. He's getting $40 million..." | | | Tomorrow's NY Daily News cover | | | The first sign of news today... | | | We suspected some announcement might be imminent when we heard that Rupert had called off his vacation and flown to New York. Recall that Ailes' attorney said earlier in the week that Rupert would be back NEXT week, implying that maybe a face-to-face was necessary before a deal could get done. Sure enough, Rupert was back in NYC by this morning... | | | On the 4pm conference call... | | Right after the press release went out, Rupert and Lachlan held a conference call with top Fox employees -- most of whom are here in Cleveland -- to address the news. Sources on the call told Dylan that Rupert expressed sadness about Ailes' departure but encouraged the staff to stay focused on the work in front of them.
"The call felt like part funeral and part pep talk," Bret Baier said. "It is a sad day, but we have a lot of work to do tonight..." | | | There's a non-compete clause | | So... Let's get down to it... How much is Ailes being paid? $40 million? $60 million? I'm told the number is closer to $40 mil -- which accounts for the remainder he is owed under the terms of his multi-year contract with Fox.
The exit deal includes a non-compete clause that prohibits Ailes from working for a news organization... | | | What shoes will drop next? | | Brian Lowry emails: On Fox, Howard Kurtz said, "Ailes of course has been virtually synonymous with Fox News," which exhibits a gift for understatement. One of the things to watch in the weeks ahead will be the additional shoes that will drop in the wake of this.
Ailes is so wrapped up in Fox News -- and so many people there beholden to him -- that it will take a while to strip away some of the vestiges of his leadership, while trying not to sacrifice the channel's appeal. That seems like a very delicate operation, and one reason why I was initially skeptical of the Murdoch heirs somehow welcoming an opportunity to get rid of Ailes. While they are no doubt glad to have him out, and look like they were taking the high road in doing so, Ailes is 76 and has had some health issues. A more graceful exit surely would have been a lot less messy...
-- Related: AP's David Bauder: "Fox News' next leader faces delicate task" | | | Because this decision gives the Murdochs more time. Rupert will be acting CEO for a period of "months," a corporate source says. But most sources believe that actual day-to-day operations will continue to be handled by Bill Shine and Jay Wallace. Both men are in the running to replace Ailes, and have guided the network in the past when Ailes was absent. But... There's a big question... | | This afternoon a Fox correspondent told me he suspects that other execs are on the way out... Especially if the law firm Paul, Weiss found that some of them knew about the harassment claims.
-- Related: Citing an anonymous source, CNBC said that the Murdochs are "leaning towards cleaning house, removing many close to Ailes..." | | | Key questions about Rupert's role | | -- Will the tone of election coverage change at all?
-- Is Rupert in sync with James and Lachlan about the future of Fox?
-- Can he persuade Kelly, Bill O'Reilly and Sean Hannity to sign new contracts? | | | Brian Lowry emails: Seems pretty obvious the Rupert part of the announcement was intended to reassure everyone that Fox wouldn't do anything to endanger its editorial tone between now and the election. There's really no other rationale -- when the company had a bit of time to contemplate a replacement -- to give him those titles... | | | "A big deal for all of us" | | | Greta Van Susteren speaking with NYT's John Koblin: "It's tough, but I would tell you, it's quite inspiring to all of us that Rupert Murdoch flew back and he's taking over the helm, and he made everyone feel really good. He's not changing anything. So change is always tough, but I think Rupert Murdoch coming back was a big deal for all of us." | | The Hill's Joe Concha writes: "This media earthquake will have aftershocks for some time. But Ailes leaves a stabile, strong network behind that can navigate shaky ground until a new leader is found."
And AdAge's Jeanine Poggi says advertisers aren't panicking... | | | Carlson's attorneys take credit | | Carlson's lawyers released this statement: "Gretchen Carlson's extraordinary courage has caused a seismic shift in the media world. 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... We will have more to say in coming days as events unfold."
— David Folkenflik tweets: "Carlson's attorney tells NPR that move by 21stCF to pay Ailes eight-figures to resign is *not* sufficient consequence..." | | | This morning, hours before the resignation announcement, Carlson's lawyers said they have continued to receive calls and emails from other women who allege harassing behavior by Ailes. There are now "more than 20 women," the law firm said. The claims could not be independently verified... | | | Dylan and I will be on Don Lemon's convention post-game show... Sometime during the 1 a.m. hour... | | | NYMag's Gabriel Sherman, who was out front and right on the news of Ailes' departure, will join me for an interview on Sunday's "Reliable Sources..." | | If you missed it yesterday, take a minute to read Bill Carter's analysis of Ailes' impact on media:
"The channel was his singular vision, and he ruled it as much as led it. The network's dominance over conservative messaging has been so complete -- and so successful—that Fox has played a central role in the creation of what has amounted often to a second, separate version of daily news and information, one subscribed to by a legion of devoted viewers, some of whom have watched the channel to the virtual exclusion of almost everything else on television..."
Read the rest of his column here... | | Let us know what you think... | | | What do you like about today's newsletter -- and what do you think we should improve? Email your feedback to reliablesources@cnn.com. We'll be back tomorrow with a full-blown newsletter... | | | Get Reliable Sources, a comprehensive summary of the most important media news, delivered to your inbox every afternoon. | | | | | |
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