News Corp. Chairman Rupert Murdoch on Monday handed control of the company's 35 television stations to Roger Ailes, the executive who in nine years built the Fox News Channel into a politically influential ratings juggernaut.
Ailes, 65, replaces the media baron's 33-year-old son, Lachlan Murdoch, who abruptly resigned his management positions within the company last month amid reported tensions with his father. The younger Murdoch, according to some company executives, felt his authority was being undermined in key divisions, including the TV station group, which until recently was a major profit center for the company.
For The Record
Los Angeles Times Wednesday August 17, 2005 Home Edition Main News Part A Page 2 National Desk 2 inches; 70 words Type of Material: Correction
Fox Television chairman -- An article in Tuesday's Business Section about Fox News Chairman Roger Ailes being given the additional title of chairman of Fox Television Stations said that Ailes, while advising former President George H.W. Bush's 1988 election campaign, had drawn fire for his hand in an advertisement that referred to felon Willie Horton. In fact, the commercial was made by an independent group that included former Ailes employees.
Ailes is one of Murdoch's favorite executives. He defied early skeptics of Fox News Channel by steering the upstart past rival Time Warner Inc.'s CNN to become the cable news ratings leader. During News Corp.'s most recent fiscal quarter, the channel reported a 30% rise in operating income.
"Ailes is well regarded on Wall Street," said Matthew Harrigan, media analyst with Janco Partners Inc. "A lot of people didn't think Fox News Channel would be a success and he confounded the skeptics. Everybody respects what he's done with that channel."
In an interview, Ailes said Murdoch asked him over lunch Monday to take on the additional duties as chairman of Fox Television Stations. Ailes said that Murdoch "didn't really give me any marching orders.... But they probably want me to improve the profits, programming and the news" at Fox-owned stations across the country.
One area top News Corp. executives singled out for improvement was developing better daytime and late-night programming that Fox stations could air in lieu of buying syndicated shows from rivals.
Ailes takes over the stations at a crucial time in the industry as stations grapple with the loss of advertising dollars to Internet companies. News Corp.-owned stations also have been hit by a switch during the last year in the way Nielsen Media Research measures station audiences in the nation's largest markets.
The change, which resulted in lower audience levels for some shows than had previously been tallied, also crimped station ad revenue. Last week, News Corp. said that its quarterly profit at the broadcasting TV unit had slipped 2% compared with the previous year.
"The world is changing," Ailes said. "It's a hard job. The television station business is a tough business."
