Report: Fox Scandal Gives James Murdoch Chance At Redemption

James Murdoch (Reuters)

If the scandal surrounding Roger Ailes has a silver lining, it may be for James Murdoch, according to Bloomberg.

It’s been a year since Murdoch, 43, assumed the role of chief executive officer at 21st Century Fox Inc. from his father Rupert and several more since he stepped down from a top job at the family’s other company, News Corp., over his handling of a phone-hacking scandal at the News of The World newspaper.

Yet the newly minted CEO’s management of the latest controversy -- the sexual-harassment allegations brought against the boss of its profitable Fox News Channel -- potentially casts him in a more positive light. By launching an internal investigation and quickly replacing the 76-year-old Ailes, his father’s friend and the channel’s chairman, James Murdoch is showing he’s learned from the criticism British regulators leveled four years ago when he led News International.

“He was swift in response, it was not left to fester, there was no cover-up,” said Claire Enders, CEO of the independent media industry research firm Enders Analysis Ltd. “He is cutting loose on an old pal of his dad’s as fast as possible and in the right way.”

Still fallout from the accusations against Ailes may not be over. Fresh claims of sexual misconduct have arisen since former Fox News anchor Gretchen Carlson filed her lawsuit against the news executive, and it’s possible more disclosures will put the company’s handling of the crisis in a harsher light.

Ailes has denied any misconduct and has said he’ll contest Carlson’s claims. Fox rejects comparisons between the Ailes scandal and the hacking incidents, pointing to its fast response to the Carlson lawsuit. James Murdoch shares responsibilities at the company with his older brother Lachlan, 44, Fox’s co-chairman along with Rupert.

James Murdoch | FindTheCompany

Back in 2012, British officials were asking similar questions and the outlook for James was bleak.

Revelations that News of the World employees had hacked into the voicemail of celebrities and other public figures cost him his job at News International. In addition, he had to step down as chairman of Sky Plc, and News Corp. in mid-2011 had to abandon its $12.6 billion bid for the satellite TV service.
At the time, News Corp. said the allegations that James failed in his duties as a director weren’t backed by evidence. Ultimately the Murdochs weren’t accused of wrongdoing, and no charges were brought against News Corp. James relocated to New York to rebuild his position within News Corp. as deputy chief operating officer.