21st Century Fox Inc. plans to remove Roger Ailes, the chairman and chief executive officer of Fox News who has been accused of sexual harassment by former anchor Gretchen Carlson, according to New York Magazine.
Fox Co-Executive Chairman Rupert Murdoch and his sons James and Lachlan have agreed that Ailes should depart, though they haven’t settled on the timing or terms of his exit, the magazine reported, citing people it didn’t identify.
Ailes’s firing would be a stunning fall for one of the most successful media consultants and TV executives of the last half-century. The former adviser to Richard Nixon and Ronald Reagan teamed with then-CEO Rupert Murdoch to found the Fox News Channel in 1996, and built it into one of the most profitable properties in all of media.
Fox News Channel ranks as one of the highest-rated cable networks, and is a huge source of profit for the parent company. 21st Century Fox’s cable networks, led by the news channel, accounted for about half of the parent company’s revenue last year and more than two-thirds of operating income.
Fox shares were little changed in New York. While Ailes is inextricably linked with Fox News in the mind of most media observers, it’s difficult to imagine his departure would lead to a dramatic change of course for the network that draws so many viewers and makes so much money.
The company declined to comment.
Harassment Suit
Ailes was sued for alleged sexual harassment by Carlson, who claimed she was fired in June for refusing his sexual advances and complaining about his conduct. The allegations prompted 21st Century Fox to begin an internal review. Her accusations were followed by published claims from several other women, all of which allegedly occurred before the Fox News Channel began airing.
Ailes has denied Carlson’s allegations, and claimed she spoke out only after she was fired by the network. He has tried to move the suit to New York from New Jersey and is seeking arbitration.
“When Fox News did not commence any negotiations to renew her contract, Ms. Carlson became aware that her career with the network was likely over and conveniently began to pursue a lawsuit,” Ailes said in a July 6 statement. “Ironically, Fox News provided her with more on-air opportunities over her 11-year tenure than any other employer in the industry, for which she thanked me in her recent book.”