In a move aimed at calming the cable news powerhouse – and a tacit acknowledgment that there was no obvious successor to Ailes – Murdoch assumed the role of acting chairman and chief executive of Fox News, in addition to his role as executive chairman of 21st Century Fox.
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Roger Ailes stepped down on Thursday as chairman and chief executive of Fox News after a sexual harassment scandal, ending a 20-year reign as head of the cable network he built into a ratings juggernaut and an influential platform for Republican politics.
Fox News is one of the jewels of 21st Century Fox and contributes nearly 20% of the parent’s EBITDA.
“Roger Ailes has made a remarkable contribution to our company and our country. Roger shared my vision of a great and independent television organisation and executed it brilliantly over 20 great years”, Rupert Murdoch, who will take over immediately as chairman and acting CEO of Fox News Channel and Fox Business Network, said in a communique.
The announcement comes in the wake of devastating sexual harassment allegations against him, spearheaded in a lawsuit by former Fox anchor Gretchen Carlson.
Ailes’ downfall began with the July 6 lawsuit filing by Carlson, who charged that he sabotaged her career because she refused his suggestions for sex and had complained about a pervasive atmosphere of sexual harassment at Fox.
After this latest revelation, 21st Century Fox launched an internal investigation and Ailes received an ultimatum from the corporate lawyers to resign before August 1 or be fired for justifiable cause. To lead a flourishing news channel, and to build Fox Business, Roger has defied the odds.
Murdoch lauded Ailes’s tenure and told staff members that these were sad times, but that he was proud of Fox News employees and the work that they were doing, the person in attendance said. Kelly is a rising star at Fox News and her contract expires in the middle of next year.
However Ailes has already been removed from the Fox News newsroom and moved to another building owned by the company.
Murdoch said Fox managers Bill Shine, Jay Wallace and Mark Kranz will assist in day-to-day management of the network.
A former consultant to Republican presidents, Mr Ailes, 76, had been a key figure in the media empire and a longtime Murdoch ally. Several other women have since also accused Ailes of sexual harassment. How does Ailes’s golden parachute stack up against other famous departures?
Media mogul Rupert Murdoch hired Ailes to serve as founding CEO and Chariman of the Fox News Channel in 1996, which soon grew to become the most popular cable news network in the country. 21st Century Fox CEO James Murdoch, the elder son of Murdoch, is pushing the whole company to step up its game in digital distribution and advertising technology. Fox had no legacy in the TV news business while CNN was entrenched as cable viewers’ go-to service for 24-hour news. Network sources believe top spokesperson Irena Briganti is likely to exit the network with Ailes.
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Insiders have speculated that Ailes could jump to a rival channel or join a political campaign.
