By Joe Flint
Fox News Chairman and Chief Executive Roger Ailes has signed a
new multiyear contract that will keep him in charge of the cable
news powerhouse through the next presidential election and
beyond.
The agreement comes a year before Mr. Ailes' current contract
was due to expire. The length of the new contract wasn't disclosed,
but a person familiar with the matter said it runs three years.
Under terms of the agreement, Mr. Ailes, 75, will continue to
report 21st Century Fox Chairman Rupert Murdoch. He will also now
report to Mr. Murdoch's sons, James, who next week will assume the
role of chief executive, and Lachlan, who will become executive
co-chairman.
The reporting structure is significant because it makes Mr.
Ailes the only 21st Century Fox division head who is still a direct
report to the elder Mr. Murdoch. It is also an about-face for the
company, which last week said Mr. Ailes would report only to James
and Lachlan Murdoch. That announcement came after Mr. Ailes had
said publicly he would continue to report to Rupert Murdoch.
"Roger and I have always had, and will continue to have, a very
special relationship," Mr. Murdoch said. James and Lachlan Murdoch
added, "Roger is an incredibly talented executive, and we're
pleased he has accepted our offer to continue his extraordinary
record of success at 21st Century Fox."
Mr. Ailes said he looked forward to working with all the
Murdochs "to do my part to help bring 21st Century Fox well into
the future."
21st Century Fox and News Corp, owner of The Wall Street
Journal, were part of the same company until 2013, when the elder
Mr. Murdoch split up his media holdings.
Keeping Mr. Ailes on board was crucial for 21st Century Fox, as
Fox News accounted for about 20% of the parent company's profit of
$4.5 billion in 2014.
Besides consistently topping CNN and MSNBC in the cable news
ratings race, Fox News often has bigger audiences in prime-time
than most entertainment and sports channels.
Besides Fox News and the Fox Business Channel, Mr. Ailes also is
chairman and chief executive of the Fox Television Station Group,
which comprises 28 TV stations reaching almost 40% of the nation's
television households.
George Stahl contributed to this article
Write to Joe Flint at joe.flint@wsj.com
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