Ailes is out as Fox News head, Murdoch named acting chief

Following weeks of pressure from the channel’s owner 21st Century Fox Ailes has finally stepped down as Chairman and CEO to be replaced by Rupert Murdoch who will now assume the role of Chairman and acting CEO of Fox News Channel and Fox Business Network.

Ailes will receive about $40 million as part of a settlement agreement, according to two people briefed on the matter, which essentially amounts to the remainder of his existing employment contract through 2018.

A former consultant to Republican presidents, Mr Ailes, 76, had been a key figure in the media empire and a longtime Murdoch ally. But even Ailes’s detractors and rivals acknowledge he created a cash cow for parent company 21st Century Fox, which has said Fox News generated around 20% of its operating profit. The younger Murdochs are now co-executive chairmen at 21st Century Fox and have a greater say in the operation.

The alliance Rupert Murdoch and Ailes that officially broke apart on Thursday had resulted in one of the most successful channels in television history.

“I am personally committed to ensuring that Fox News remains a distinctive, powerful voice”, Murdoch said.

Roger Ailes’ successor at Fox News faces a delicate task in changing the culture of a news organization forever identified with one man, and push it forward for a new generation without alienating an audience that has made it a tremendously lucrative business.

Ailes has denied the allegations, referring to them in a statement as “false” and “offensive”.

Ailes once seemed untouchable due to the incredible success of Fox News, which also spawned a business news spin-off, Fox Business, and multiple radio networks.

NEW YORK (AP) – Fox News Channel is minus founding leader Roger Ailes but not its direction, Rupert Murdoch vowed. There, he announced the news about Ailes and read remarks to a small group.

In July, Carlson filed a lawsuit against Ailes, claiming years of inappropriate behavior and sexual advances. [Bill] Shine, the senior programming executive, does not command the same level of respect from the Murdochs, while the former top news executive, Michael Clemente, was recently sidelined by Ailes.

The media mogul issued a statement thanking Ailes for his “remarkable contribution” to the company over two decades, but did not reference the allegations against the Fox News CEO. Fox News has a relatively old audience – most of its prime-time viewers are over 65.

Ailes applied his ability to move the hearts and minds of voters to television news when Murdoch enlisted him to launch Fox News channel as a competitor to CNN, which had the cable news market to itself.

“It’s easier to chase people away than attract them”, he said.

Mr Murdoch paid tribute to Ailes as 21st Century Fox confirmed his departure.

“Roger shared my vision of a great and independent television organization and executed it brilliantly over 20 great years”, Murdoch said.

But critics said Mr Ailes and Fox were blatantly partisan.

Inside Fox News, starting on Tuesday, when Ailes’ departure suddenly began to seem inevitable, A-list hosts and rank and file producers alike were in the dark and anxious about what would come next.