Murdoch’s defiance gives way to business in O’Reilly firing
NEW YORK — Rupert Murdoch stood behind his top American asset, the anchor Bill O’Reilly of Fox News, for years, shrugging off a sexual harassment scandal in the mid-2000s and multiple complaints about O’Reilly’s behavior that surfaced behind closed doors.
Murdoch prizes loyalty and profits, both of which O’Reilly brought him in droves. And Murdoch disdains the politically correct mores of the media world, relishing any chance to defy liberal detractors who might challenge his success.
But Murdoch, 86, also has proved, time and again, that he is a pragmatist at his core — at least, when his hand is forced. Roger Ailes, the Fox News creator who generated billions of dollars for Murdoch, is gone. News of the World, the famed tabloid newspaper at the heart of a hacking scandal, is closed.
Now O’Reilly, the top cable news host in the United States, is out. Murdoch signed off on the decision, even if, according to people briefed on the delib-
erations who spoke on the condition of anonymity to discuss internal matters, it took him longer than others in his circle to get there.
Murdoch did not build a worldwide corporate empire without making a few hard choices along the way. Fox News may be a major profit center, but Murdoch has lucrative interests across multiple continents, including the Australian, Asian and European markets.
And his memory is long. When the hacking fracas threatened to subsume his business, Murdoch watched his bid to acquire Sky, the British satellite and news giant, scuttled by British regulators. Now, he again has Sky in his sights, and O’Reilly’s troubles surfaced at the moment when Murdoch must pass a so-called fit and proper test, or a judgment on whether the people who will run the merged company are fit to do so.
Controlling Sky would be highly lucrative, but it was not the only factor that weighed against Murdoch’s natural fealty to his stars. Harassment cases
O’Reilly and his employers came under intense pressure after an article by the New York Times revealed how Fox News had repeatedly stood by him even as sexual harassment allegations against him mounted. The Times found that the company and O’Reilly had reached settlements with five women who had complained about sexual harassment or other inappropriate behavior by him. The agreements totaled about $13 million.
Advertiser boycotts and protests at the Manhattan headquarters of News Corp., one of Murdoch’s companies, were ratcheting up pressure. Before Wednesday’s announcement, members of senior management at Fox News’ parent company, 21st Century Fox, were briefed on the results of an internal investigation into O’Reilly’s behavior.
Murdoch, who often resists outside pressure, was also being counseled by his sons, James and Lachlan Murdoch, who are the top executives at 21st Century Fox and are intent on steering the family ship far into a new century, with new standards of workplace behavior.
Murdoch despises the perception that he does not stick up for those who are loyal to him. Some of his most cherished lieutenants, like the former News of the World editor Rebekah Brooks, were eventually forced out, only to return later, taking senior positions in Murdoch’s circle.
Jettisoning O’Reilly was most likely another painful moment for Murdoch.
But it may have been less so than the episode last summer involving Ailes, who, besides being a critical colleague, was something of a Murdoch friend, one who helped Murdoch start Fox News two decades ago.
O’Reilly and Murdoch are said to be cordial with each other, according to people who have dealt with both. But corporate executives and on-air talent are rarely very close, especially in an industry in which brands are vital and talent is dispensable.
In a memo to the Fox News staff on Wednesday, Murdoch praised O’Reilly as “one of the most accomplished TV personalities in the history of cable news,” and he wrote that he understood “how difficult this has been for many of you.”
The deed, however, was done. And Murdoch is no fan of dwelling.
“We have full confidence that the network will continue to be a powerhouse in cable news,” he wrote. “Please see attached for our new programming lineup.” Conservative beacon
For a generation of conservative-leaning Fox News viewers, O’Reilly was a populist voice who railed against what they viewed as the politically correct message of a lecturing liberal media. Defiantly proclaiming his show a “No Spin Zone,” he produced programming infused with patriotism and a scorn for movements like “The War on Christmas,” which became one of his signature themes.
The news of O’Reilly’s ouster came as he was on a vacation to Italy, where on Wednesday he met Pope Francis at St. Peter’s Square in the Vatican. In a statement later in the day, O’Reilly praised Fox News but said it was “tremendously disheartening that we part ways due to completely unfounded claims.”
“But that is the unfortunate reality many of us in the public eye must live with today,” he said.
“I will always look back on my time at Fox with great pride in the unprecedented success we achieved and with my deepest gratitude to all my dedicated viewers. I wish only the best for Fox News Channel.”
O’Reilly’s departure is the latest development in a tumultuous nine months at Fox News. In the aftermath of Ailes’ dismissal in July, the Murdochs pledged to clean up the network’s culture. But since then, it has been hit with new sexual harassment allegations.
O’Reilly’s dismissal was hailed by women’s rights activists and some inside the company as a sign that the network, and perhaps corporate culture at large, was finally taking the issue of sexual harassment seriously.
“This is a seismic cultural shift, when a corporation puts a woman’s rights above the bottom line,” said Wendy Walsh, a former guest on O’Reilly’s show who made allegations against him. “Today, we have entered a new era in workplace politics.”
But some employees said they remained skeptical about whether the treatment of women at Fox News would actually change.