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| Fox News Sexual Harassment Inquiry Is Said to Look at What Others Knew | Fox News Sexual Harassment Inquiry Is Said to Look at What Others Knew |
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| Investigators looking into sexual harassment accusations against the former Fox News chairman Roger Ailes are also examining whether other executives knew of alleged improper behavior by Mr. Ailes and failed to act on it, people briefed on the inquiry said on Wednesday. | Investigators looking into sexual harassment accusations against the former Fox News chairman Roger Ailes are also examining whether other executives knew of alleged improper behavior by Mr. Ailes and failed to act on it, people briefed on the inquiry said on Wednesday. |
| The investigation, focused on accusations against Mr. Ailes, has not broadened into a comprehensive look at the workplace culture at Fox News, these people said. But investigators will pursue information presented in interviews about others at the company who might have effectively enabled Mr. Ailes’s reported behavior. | |
| The inquiry is continuing, these people said, with more current and former Fox News employees scheduled for interviews. As of last week, nearly 20 women had reported inappropriate behavior by Mr. Ailes, according to one of the people. The accounts, though unverified, led the leadership of 21st Century Fox, Fox News’s parent, to determine that Mr. Ailes could not stay on, this person said. | The inquiry is continuing, these people said, with more current and former Fox News employees scheduled for interviews. As of last week, nearly 20 women had reported inappropriate behavior by Mr. Ailes, according to one of the people. The accounts, though unverified, led the leadership of 21st Century Fox, Fox News’s parent, to determine that Mr. Ailes could not stay on, this person said. |
| The investigation by the law firm Paul, Weiss, Rifkind, Wharton & Garrison began on July 6, the day that Gretchen Carlson, a former Fox News anchor, filed a sexual harassment lawsuit against Mr. Ailes. Mr. Ailes, who denied the allegations, stepped down 14 days ago. | The investigation by the law firm Paul, Weiss, Rifkind, Wharton & Garrison began on July 6, the day that Gretchen Carlson, a former Fox News anchor, filed a sexual harassment lawsuit against Mr. Ailes. Mr. Ailes, who denied the allegations, stepped down 14 days ago. |
| A 21st Century Fox spokeswoman declined to comment, but on Tuesday said in a statement that the law firm “remains counsel to us and is dealing with any and all issues as they arise.” | |
| Scrutiny of Mr. Ailes’s behavior and Fox’s operations increased on Friday with an article in New York magazine about the experiences of a former booker, Laurie Luhn, who said that Mr. Ailes had harassed her and subjected her to “psychological torture.” In the article, she tells of Mr. Ailes using company resources and staff members, including Bill Shine, Mr. Ailes’s deputy, to facilitate the relationship. Mr. Shine, who is now part of the interim management team at Fox News, has told associates that he did not know Mr. Ailes was having a relationship with Ms. Luhn. | Scrutiny of Mr. Ailes’s behavior and Fox’s operations increased on Friday with an article in New York magazine about the experiences of a former booker, Laurie Luhn, who said that Mr. Ailes had harassed her and subjected her to “psychological torture.” In the article, she tells of Mr. Ailes using company resources and staff members, including Bill Shine, Mr. Ailes’s deputy, to facilitate the relationship. Mr. Shine, who is now part of the interim management team at Fox News, has told associates that he did not know Mr. Ailes was having a relationship with Ms. Luhn. |
| The New York Times spoke to more than a dozen women for an article published last month, who told of being harassed by Mr. Ailes or other managers and suggested there was a broader culture of harassment and intimidation in the workplace. | The New York Times spoke to more than a dozen women for an article published last month, who told of being harassed by Mr. Ailes or other managers and suggested there was a broader culture of harassment and intimidation in the workplace. |
| Later on Wednesday, 21st Century Fox reported its quarterly earnings, and Lachlan Murdoch, the executive chairman, began a conference call with analysts by addressing the situation at Fox News. | Later on Wednesday, 21st Century Fox reported its quarterly earnings, and Lachlan Murdoch, the executive chairman, began a conference call with analysts by addressing the situation at Fox News. |
| “Throughout this process we have moved quickly and decisively to protect the business, to protect its employees and to protect the unique and important voice Fox News broadcasts,” he said. | “Throughout this process we have moved quickly and decisively to protect the business, to protect its employees and to protect the unique and important voice Fox News broadcasts,” he said. |
| Noting that his father, Rupert Murdoch, had taken over the daily management of Fox News, he added, “There is no one more dedicated or more able to transition Fox News to new leadership.” Lachlan Murdoch called the team left behind by Mr. Ailes “extraordinarily strong and equally devoted to its success.” | Noting that his father, Rupert Murdoch, had taken over the daily management of Fox News, he added, “There is no one more dedicated or more able to transition Fox News to new leadership.” Lachlan Murdoch called the team left behind by Mr. Ailes “extraordinarily strong and equally devoted to its success.” |
| From there, 21st Century Fox executives, including James Murdoch, the chief executive and Lachlan Murdoch’s brother, focused attention on the company’s broader operations, including the Hulu streaming service and coming movie releases. Only one analyst asked for greater “color” about the situation at Fox News, which contributes roughly 20 percent of the company’s total annual profit. | From there, 21st Century Fox executives, including James Murdoch, the chief executive and Lachlan Murdoch’s brother, focused attention on the company’s broader operations, including the Hulu streaming service and coming movie releases. Only one analyst asked for greater “color” about the situation at Fox News, which contributes roughly 20 percent of the company’s total annual profit. |
| Lachlan Murdoch replied that he expected Fox News to remain strong. | Lachlan Murdoch replied that he expected Fox News to remain strong. |
| For its fiscal fourth quarter, 21st Century Fox had a profit of $567 million, or 30 cents a share, compared with $87 million, or 4 cents a share, a year earlier. Adjusting for one-time items in both quarters, including a recent tax benefit, the company had earnings of 45 cents in the most recent quarter, compared with 39 cents a year ago. | For its fiscal fourth quarter, 21st Century Fox had a profit of $567 million, or 30 cents a share, compared with $87 million, or 4 cents a share, a year earlier. Adjusting for one-time items in both quarters, including a recent tax benefit, the company had earnings of 45 cents in the most recent quarter, compared with 39 cents a year ago. |
| Revenue totaled $6.65 billion, a 7 percent increase from a year earlier. Analysts had expected 37 cents in per-share earnings and $6.68 billion in revenue. | Revenue totaled $6.65 billion, a 7 percent increase from a year earlier. Analysts had expected 37 cents in per-share earnings and $6.68 billion in revenue. |
| Domestic advertising was a bright spot in the quarter. Ad revenue increased 13 percent at the company’s domestic cable networks, reflecting higher ratings and pricing at channels like Fox News and Fox Sports 1. Revenue from domestic affiliate fees increased 6 percent, with FX and Fox News leading the way. | Domestic advertising was a bright spot in the quarter. Ad revenue increased 13 percent at the company’s domestic cable networks, reflecting higher ratings and pricing at channels like Fox News and Fox Sports 1. Revenue from domestic affiliate fees increased 6 percent, with FX and Fox News leading the way. |
| But a 15 percent rise in total programming costs essentially washed away those increases. For the fourth quarter, 21st Century Fox’s cable television division had an operating income of $1.2 billion, flat from a year earlier. Fox News had higher expenses related to the presidential campaign; the company also had to pay more for sports rights. | But a 15 percent rise in total programming costs essentially washed away those increases. For the fourth quarter, 21st Century Fox’s cable television division had an operating income of $1.2 billion, flat from a year earlier. Fox News had higher expenses related to the presidential campaign; the company also had to pay more for sports rights. |
| The company’s movie studio also struggled with costs. During the quarter, 20th Century Fox spent heavily to market movies like “X-Men: Apocalypse,” “Independence Day: Resurgence” and “Ice Age: Collision Course.” Only one, “X-Men: Apocalypse,” was fully released in the quarter, and worldwide box-office results were poor, falling 29 percent behind the grosses generated by the previous “X-Men” effort. | The company’s movie studio also struggled with costs. During the quarter, 20th Century Fox spent heavily to market movies like “X-Men: Apocalypse,” “Independence Day: Resurgence” and “Ice Age: Collision Course.” Only one, “X-Men: Apocalypse,” was fully released in the quarter, and worldwide box-office results were poor, falling 29 percent behind the grosses generated by the previous “X-Men” effort. |
| Lachlan Murdoch noted that a studio regime change was put into motion in the quarter. “Ultimately, it’s about having a higher standard for storytelling and making better movies,” he said. | Lachlan Murdoch noted that a studio regime change was put into motion in the quarter. “Ultimately, it’s about having a higher standard for storytelling and making better movies,” he said. |