Killing "The O'Reilly Factor"

"Killing O'Reilly" could be the name of the next book Fox News commentator and host Bill O'Reilly writes.  O'Reilly announced on his broadcast Tuesday evening that he is immediately leaving on vacation, "I like to take time off around Easter, it's calming."  However, O'Reilly's announcement was anything but calming when it comes to the growing sexual harassment scandal involving him, as speculation increases that he will be leaving the network.   Fox News has said he will return April 24.

The New York Times published an article April 1 disclosing that O'Reilly and his network had paid $13 million to five women as settlements for sexual harassment complaints.   Since then dozens of advertisers have pulled their ads from "The O'Reilly Factor", which has been the network's highest rated program, regularly pulling in more than 3 million viewers.  Kantar Media reported that the program is now airing about seven national ads, which is significantly down from the usual 33 national ads.  

Last week Los Angeles radio personality Wendy Walsh, accompanied by attorney Lisa Bloom, said that O'Reilly had sexually harassed her.  The company says it is investigating this claim.   Meanwhile, Bloom told MSNBC Tuesday night that it is likely more women will come forward with additional allegations against O'Reilly.   O'Reilly has said that he is a target because he is famous, so he settled to "spare his children the pain of messy ordeals."  No other Fox News host has been similarly accused.  Perhaps the only other "famous" person to face such allegations is former Fox News Chairman and CEO Roger Ailes, who resigned last year amid scandal, but received a $40 million exit package from the company.  

While few noteworthy people have come to the defense of the temperamental O'Reilly, he did receive support from the president.  Speaking in the Oval Office last week, Trump described O'Reilly as a good person adding, "I don't think Bill did anything wrong."  He told the New York Times, "Personally, I think he shouldn't have settled."  Of course, the president has also been the target of sexual harassment charges, especially following the disclosure of audio from a video recording of him bragging about sexual assault. Trump later apologized for his remarks.

Fox News makes well over a billion dollars a year in gross profits.  The top rated "O'Reilly Factor" earns tens of millions of dollars in profit annually, and serves as a tent pole for those broadcasts adjacent to it.  O'Reilly's viewers are extremely loyal and his ratings have increased since the latest scandal broke.  But are the viewers loyal to the talent or to the Fox News brand?  Fox News executives will be monitoring the ratings during O'Reilly's vacation to see if his absence impacts the numbers.  They also know that ratings increased when controversial Fox News host Megyn Kelly was replaced by Tucker Carlson in the 9PM ET hour.

The sexual harassment charges are roiling the waters in Great Britain where 21st Century Fox is trying to take full control of Sky News.  The British regulator, Ofcom, is expected to announce by mid May whether it will let the deal go forward.  Ofcom could kill the deal if Rupert Murdoch and the company does not meet the standard of "fit and proper" owners, which can include any relevant misconduct.   Murdoch is still damaged by a hacking scandal in England which led a parliamentary committee to find in 2012 that he is "not a fit person to exercise stewardship of a major international company." 

Murdoch is also seeking to ease regulatory restrictions in Washington, where politicians are especially susceptible to public opinion.  Already New York City Public Advocate Letitia, who has led protests at Fox News headquarters, has sent letters the the city's Commission of Human Rights and the Securities and Exchange Commission requesting they investigate sexual harassment at the network.   Meanwhile, Fox News is being investigated by federal prosecutors to determine whether it broke any securities laws with its harassment settlements.

For the most part, Fox News has supported President Donald Trump.  Rupert Murdoch sees opportunity for his business interests because of a Trump presidency, and both men like nothing more than winning.  But, like Trump, some of Murdoch's children have a more moderate approach.   New York Magazine reporter Gabriel Sherman reports that a senior Fox News staffer said, "It's up to the family."  Sherman reports two Fox News sources say 21st Century Fox CEO James Murdoch wants O'Reilly out, while his brother, Lachlan, and father Rupert "are more inclined to keep him."

Donald Trump once famously said, "I could stand in the middle of 5th Avenue and shoot somebody and I wouldn't lose voters."   But the invincible Bill O'Reilly has lost advertisers and his program will take a huge financial hit.  At this point, advertisers clearly have a greater sense of social responsibility than does Fox News.  What do the O'Reilly settlements and the Ailes termination say about the corporate culture at Fox News?   

Fox News must rid itself of the stigma associated with this well established pattern and all of its bad actors. As the leading cable news channel, which serves millions of viewers every day, Fox News must act responsibly by making a powerful statement that sexual harassment is unacceptable.  

Killing "The O'Reilly Factor" and terminating Bill O'Reilly would be an important first step for 21st Century Fox.  

Murdoch Tastes Humble Pie

"This is the most humble day in my life," said Rupert Murdoch, the world's most powerful media mogul and chairman of News Corporation, to a British parliamentary committee. He and his son James, who oversees European and Asian operations for News Corporation, repeatedly expressed their apologies for the phone hacking scandal that threatens to bring them both down.

The nearly three hour session was abruptly disrupted near then end by a man who hit Rupert Murdoch in the face with a shaving cream pie. The attacker said to Murdoch, "You are a greedy billionaire." Murdoch's wife Wendi leapt out of her chair behind Murdoch and took a swipe at the assailant as others restrained him.

The disruption broke the tense atmosphere that prevailed throughout the session. The Murdochs bobbed and weaved questions by offering little new information. Rupert Murdoch was contrite, "I was shocked, ashamed and appalled" by the phone hacking scandal. James Murdoch said their top priority is to, "Restore the trust" in News Corporation. When asked whether families of the victims of the 9/11 terrorist attack in New York City were hacked both said they were not aware of any evidence they had been.

What was most remarkable was how little both men appeared to know. Rupert Murdoch seemed totally detached from the scandal. He appeared old, he's 80, and was often slow to respond. At one point the chairman admitted, "I am not really in touch... News of the World, I lost sight because it is small." His son politely offered answers to most of the questions. But the tone of their testimony was, "We don't know how it happened; we are cooperating; and we will make sure it never happens again."

At one point Rupert Murdoch blamed the executives who ran his businesses. "What we did was terrible," he said, "were mistakes made in the organization, yes." James tried to reassure the committee by saying, "Breaking the law is a very serious matter and things like phone hacking have no place in our business." His father was even more emphatic, "Invading people's voice mail is wrong, paying police officers is wrong... saying we're sorry is not enough."

Rupert Murdoch referred several times to how large his global empire is, with more than 50,000 employees. But it also was clear he might not have been fully in the information loop on the developing scandal that began as early as 2007. This led to many questions from one MP regarding Murdoch's role in corporate governance.

Murdoch said he delegated responsibility to his business leaders and trusted them. But he also admitted that some of his employees were not honest and forthcoming. When asked if he would resign, Murdoch said no, explaining, "Because I feel that people I trusted let me down...I think I am the best person to clean this mess up."

This committee hearing may only be the beginning of the end for the Murdochs. Public outrage has focused an unprecedented scrutiny on News Corporation and its tawdry business culture. For sure, Rupert Murdoch is a fierce competitor who is fueled by an overwhelming desire to accumulate power and ruthlessly wield it. He has many powerful enemies who have now been galvanized into action. In the end, Murdoch may have gotten it right when he said, "Saying we're sorry is not enough."