Report: Roger Ailes Demoted At FOX

Roger Ailes

Roger Ailes, the longtime boss of Fox News who has built it into a hugely profitable channel, has been dealt a massive blow by the bosses at 21st Century Fox, Business Insider reports.

There has been lots of change at the top at 21st Century Fox: Rupert Murdoch recently announced plans to step down July 1 as CEO, handing the company over to his son James. Rupert's other son, Lachlan, will join his dad as executive cochairman. And Chase Carey, the company's deputy chairman, president, and COO, will become executive co-chairman.

In an emailed news release sent out Tuesday confirming its executive changes, Fox makes no mention of Ailes.

As news emerged last week that Rupert Murdoch was stepping down as CEO, New York Magazine's Daily Intelligencer blog reported that Ailes released "what now appears to be a rogue statement" to the Fox Business Channel, saying he would continue to run the news network, reporting directly to Rupert Murdoch.

But a 21st Century Fox representative told The Hollywood Reporter, "Roger will report to Lachlan and James."

BI says that's a huge slap in the face for 75-year-old Ailes, who has long counted Rupert Murdoch as a close ally. Ailes built Fox News from scratch into a huge cash cow contributing to 18% of 21st Century Fox's profits in 2014.

Despite his huge contribution to the company, Ailes does not get along with the Murdoch brothers, sources have previously told Business Insider.

Judging by Ailes' history with the Murdoch brothers, and his apparent confusion around whom he will be reporting to, it's unlikely Ailes will be happy with the arrangements at the top of the company. His contract is up in 2016 anyway, and Ailes told The Hollywood Reporter back in April that nobody had been in touch to talk about a renewal.