Ailes has denied the charges. Fox hired a law firm to investigate, and the probe has revealed a pattern of inappropriate behavior toward female staffers, people familiar with the matter said.
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According to officials at the company, the arrangement precludes Ailes from working for other competitor networks or news organizations or from disparaging the Murdochs or 21st Century Fox as a result of his departure, NPR’s David Folkenflik reports.
Rupert Murdoch, the company’s patriarch, was on vacation, but flew back to NY early to participate in the talks.
Ailes’ resignation letter, however, did not mention the sexual assault case.
The ex-CEO will receive an exit package worth $40 million. But Fox’s many fans said it was a necessary counterweight to liberal media bias. Roger shared my vision of a great and independent television organization and executed it brilliantly over 20 great years.
Ailes’ promotion of Megyn Kelly to prime time is a template for Fox, he said. Fox mixed daily news reporting and nightly conservative opinion in ways that many critics found to be damaging to American discourse.
It was an unexpected visit, and with stunned employees listening in Fox’s midtown Manhattan headquarters, Murdoch announced that Ailes was out as chairman and chief executive. Fox, like all of the news networks, is riding high in the ratings in an election year but viewership is nearly certain to go down next year and bring new challenges. Winning over the younger demographics that are most appealing to advertisers could require some significant changes in its programming and talent. In addition, the news channel needs to adapt to changing consumption habits, including the move to digital platforms. 21st Century Fox says Ailes is resigning. It was a swift fall for the famously resilient executive, who has been with the network 20 years ago and is widely credited for its success. Without the outpouring of first-person accounts, Fox could have much more easily characterized Carlson as a disgruntled, dishonest former employee.
Shine and Wallace were already running things day-to-day as negotiations picked up around Ailes’ departure.
Ailes’ downfall began with the July 6 filing of a lawsuit by Gretchen Carlson, who charged that Ailes sabotaged her career because she refused his suggestions for sex.
Roger Ailes, the CEO and chairman of Fox News, is stepping down from his role.
At 21st Century Fox, which also includes a major Hollywood studio and television network, Rupert Murdoch had taken the role of executive chairman with his son Lachlan, and with James Murdoch as CEO.
Pressure mounted when other women came forward in media reports with similar claims against Mr. Ailes.
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”, lawyers Nancy Erika Smith and Martin Hyman said in a statement. They declined to make Ms. Carlson available for comment.
James and Lachlan Murdoch said in a joint statement Thursday “We join our father in recognizing Roger’s remarkable contributions to our company”. The lawsuit quoted Ailes as saying “I think you and I should have had a sexual relationship a long time ago and then you’d be good and better and I’d be good and better”, adding, “sometimes problems are easier to solve” that way. Numerous hosts, correspondents and producers said they had not heard from Ailes in several days – unusual for him, especially with such a big political story going on. The corporate source said Rupert would be acting CEO for a period of “months”.
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“The Murdoch boys are looking at the demographics and see it as skewing very old, very white, very male”, she says.
