Fox News Chairman Roger Ailes and the cable news network’s parent, 21st Century Fox, are discussing a plan that would lead to the departure of the legendary 76-year old news executive following a sexual harassment lawsuit brought by a former employee, according to a person briefed on the matter.
The person asked to speak anonymously because of the sensitive nature of their talks.
The stunning development comes less than two weeks after Gretchen Carlson filed the suit in a state court in New Jersey, alleging that Ailes sabotaged her career because she refused his sexual advances. Carlson left Fox on June 23 when her contract wasn't renewed. Twenty-first Century Fox expressed confidence in Ailes but hired New York law firm Paul, Weiss, Rifkind, Wharton & Garrison to investigate the situation.
Ailes has vigorously denied the allegation, saying the lawsuit is a retaliatory measure for the network's refusal to renew Carlson's contract. She was let go, Ailes said, due to the low ratings of her show, The Real Story with Gretchen Carlson.
The Drudge Report said Tuesday that it had obtained a document that shows Ailes plans to leave with a $40 million severance package. Twenty-first Century Fox tweeted a statement denying it: “Roger is at work. The review is ongoing. The only agreement that is in place is his existing employment agreement.”
The departure of Ailes, a former media adviser to President Nixon, would represent a sea change for the conservative-leaning network, which dominates cable news ratings and has transformed Republican politics since its founding in 1996.
The powerful news executive is reviled by many liberals for what they say is his manipulative, intellectually dishonest and overly aggressive approach to politicizing news. Conservatives view him as a visionary figure who has provided a much-needed counterbalance to what they see as the liberal mainstream media. Many industry watchers say Ailes dictates operational and editorial details of the network and that it is hard to imagine Fox News without him.
Speculation about Ailes’ imminent departure accelerated after New York magazine reported that Megyn Kelly, a rising star at Fox, told investigators that Ailes had sexually harassed her in the past, buttressing Carlson's claims.
A lawyer for Ailes denied that claim Tuesday.
“Roger Ailes has never sexually harassed Megyn Kelly,” Susan Estrich said in a statement. “In fact, he has spent much of the last decade promoting and helping her achieve the stardom she earned, for which she has repeatedly and publicly thanked him.”
A day earlier, New York magazine reported that 21st Century Fox's top executives — executive chairman Rupert Murdoch; his eldest son and co-executive chairman Lachlan Murdoch; and CEO James Murdoch, Murdoch's younger son — have agreed that Ailes needs to leave the company.
If Ailes doesn't resign by Aug. 1, he could be fired for cause, New York magazine reporter Gabriel Sherman, an Ailes biographer, wrote.
Sherman previously reported that more than a dozen women have contacted Carlson's lawyer, Nancy Smith, to offer their details about alleged sexual harassment from Ailes.
Several female Fox broadcasters, including Greta Van Susteren and Jeanine Pirro, have come out in support of Ailes in recent days. But the notable silence from Kelly on the matter has raised eyebrows among industry watchers.
Follow USA TODAY media reporter Roger Yu on Twitter @ByRogerYu.
