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The Battle to Control the Murdoch Media Empire

Hosted by Michael Barbaro, produced by Clare Toeniskoetter, and edited by Wendy Dorr, Lisa Chow and Lisa Tobin

Rupert Murdoch’s media outlets have helped destabilize democracy on three continents. The power struggle among his children has world-changing consequences.

michael barbaro

From The New York Times, I’m Michael Barbaro. This is “The Daily.”

Today: Through his media empire, Rupert Murdoch has reshaped the politics of countries across the English-speaking world, pushing their governments to the right. Inside the bitter struggle between his sons over who would control that empire once he’s gone.

It’s Friday, April 5.

jonathan mahler

So the story begins in January 2018 with Rupert Murdoch, 86 years old, the most powerful media mogul in the world, with his fourth wife, Jerry Hall, Mick Jagger’s ex. And they borrow his son Lachlan’s 140-foot yacht.

[music]

jim rutenberg

I mean, “yacht” doesn’t even begin to describe it. It is a floating pleasure palace.

michael barbaro

Jim Rutenberg and Jonathan Mahler spent six months investigating the Murdoch family for The Times Magazine.

jim rutenberg

There’s one room that has all the stars of the sky in the ceiling. One switch turns on the Southern Hemisphere constellations. The other one turns on the Northern Hemisphere constellations. The cockpit turns into a swimming pool because you never know when you want to take a dip. There’s even a rock climbing kind of training apparatus. So you set that up on the deck and practice your rock climbing.

michael barbaro

So this boat is kind of a floating portrait of luxury.

jonathan mahler

Yes. But it’s also a sailboat. And Rupert Murdoch is an 86-year-old man. And it’s not easy to navigate a sailboat, especially in the middle of the night.

So Rupert Murdoch is on his way to the bathroom in his cabin. And he trips, and he falls. And he can’t move. He’s stretchered off the boat. He is initially seen at a hospital in the Caribbean. They saw how serious his condition was, that it was potentially fatal. And he’s airlifted to Los Angeles, to the U.C.L.A. Medical Center, and ultimately goes into emergency surgery.

[music]

jim rutenberg

So at this point, Jerry Hall, his fourth wife, begins calling the children, Lachlan, James, Elizabeth and Prudence, who live in different parts of the world. And they all fly in to Los Angeles to be by their father’s bedside.

jonathan mahler

And there’s a whole sort of subtext here. They’ve literally spent their entire lives jockeying and competing with each other to become the heir to this empire. So the subtext is, who is going to run this company when our dad is gone, that not only are they all coming to possibly say goodbye to their father, but the whole Murdoch empire is up for grabs.

michael barbaro

Because it sounds like there is no plan in place if Murdoch dies at this moment.

jonathan mahler

Correct. I mean, everything is now up in the air.

michael barbaro

O.K., so just how big and important is this media empire that’s now hanging in the balance?

jonathan mahler

It is enormous.

archived recording

[20TH CENTURY FOX MUSIC]

jonathan mahler

It is a massive Hollywood studio.

archived recording

(SINGING) The Simpsons.

jonathan mahler

It is multiple TV stations. It is dozens of newspapers. It’s really media outlets across the English-speaking world.

jim rutenberg

In the U.S., of course, it’s Fox News.

archived recording

America needs just one channel that has a somewhat different point of view.

jim rutenberg

But it’s also the 21st Century Fox movie studio. It’s The New York Post. It’s The Wall Street Journal. It’s the Dow Jones wire.

archived recording (john bercow)

Order!

jim rutenberg

In the U.K., it’s leading newspapers like —

archived recording

Today, you should order The Sun.

jim rutenberg

— the tabloid U.K. Sun and the more establishment Times of London.

archived recording

Hello, and welcome to Sky News.

jim rutenberg

It’s Sky News, cable news. And it’s Sky’s satellite service, which is gigantic.

archived recording 1

Well, thanks for coming in this morning, Will.

archived recording 2

No problem.

jim rutenberg

And in Australia, their media power is at its most undiluted. The Murdoch papers account for 60 percent of newspaper sales. And they have a cable news service as well.

jonathan mahler

So what all of these outlets add up to is more than just kind of a media company in the traditional sense. It’s a media empire, all controlled by one man who can use them as a tool of influence to shape political landscapes all across the world.

I mean, he’s an empire builder in the kind of original sense of the term. He wants to continuously grow his empire. And that works perfectly with his influence, because it enables him to knock down any barriers to growth that he needs.

[music]

jonathan mahler

And this instinct, this sort of desire for territorial conquest, he learned it from his dad.

michael barbaro

And who is his dad?

jim rutenberg

Well, his father, Sir Keith Murdoch, was a newspaperman himself. He worked for and basically led what became the first national news chain in Australia. His father is also very conservative. He had written a paper as a young man about the need for a white Australia.

michael barbaro

A white Australia.

jonathan mahler

Yep, he was a member of the Royal Eugenics Society. I mean, he was a proto-white nationalist.

michael barbaro

Hmm.

jim rutenberg

And he’s willing to use his newspapers to push into office people who do his bidding, people who will help him grow his media business and suspend regulations. And young Rupert is taking all of this in in the family house, learning the ways of the business from dad.

jonathan mahler

Then he goes off to Oxford as a young man. But his father dies abruptly. And you know, Rupert, at this point, has sort of — you know, not only has he grown up studying the newspaper with his father, but he’s done an apprenticeship on Fleet Street. So he’s —

michael barbaro

Which is kind of the media center of London.

jonathan mahler

It’s the media center of London. And it’s also the media center of tabloid London and the populist idea, essentially. So Rupert kind of has that in his blood already. And he returns home to Australia at the age of 22 to inherit a single newspaper with a circulation of around 100,000 —

michael barbaro

Pretty small.

jonathan mahler

— a regional newspaper, a small newspaper. And this becomes the beginning of the Murdoch empire.

[music]

archived recording

Over Sydney Harbour Bridge by Rolls-Royce, Rupert Murdoch on his way to his office.

jonathan mahler

He uses his one newspaper to wield power and get what he needs, influence politicians, clearing anti-monopoly rules out of his way so that he can buy another newspaper.

archived recording

Murdoch inherited the basis of his newspaper empire from his father, built on it and enlarged it to cover every state in Australia.

jonathan mahler

And he gradually starts to build what is effectively a media monopoly in Australia.

archived recording

He’s chubby-cheeked and open-faced, but underneath, say those who know him, he’s a man of steel, ruthless in getting his own way, iron-willed in seeing that his plans are carried through.

jonathan mahler

Murdoch essentially develops what becomes the Murdoch playbook.

archived recording

You do like the feeling of power you have as a newspaper proprietor and being able to sort of formulate policies for a large number of newspapers in every state of Australia.

archived recording (rupert murdoch)

Yes.

jonathan mahler

Reward your allies and punish your enemies. And you know, he has a growing empire with which to do that.

michael barbaro

And tell me how this playbook works in practice.

jim rutenberg

Well, let me tell you a story, an early story of Murdoch’s origins.

archived recording

If the News of the World deal goes through, he’ll transfer his base to London.

jim rutenberg

Rupert Murdoch, having gotten his empire underway solidly in Australia, returns to London.

archived recording

He says the News of the World organization is now ripe for expansion into TV or possibly a new daily.

jim rutenberg

And in the late ‘60s buys The News of the World, a major tabloid. He buys the U.K. Sun, another big tabloid.

archived recording

He takes an active part in what goes into his papers, even going into the composing room to supervise what’s in the page proofs for next day’s edition.

jim rutenberg

He wants more. He wants to own The Times of London, the establishment broadsheet that speaks to the elite, so he has the whole market kind of covered. But he runs into a problem. The United Kingdom had strict media rules. They don’t want one person to own that much influence, to have so many newspapers in a single market, London. But —

archived recording (margaret thatcher)

What a contrast with us. While Labour’s pessimistic, we are full of hope.

jim rutenberg

He finds a solution in getting behind Margaret Thatcher, conservative icon, rising right-leaning star of British politics.

archived recording (margaret thatcher)

We rise to the challenge, to the excitement and the adventure.

jim rutenberg

Puts his tabloids behind her.

michael barbaro

Literally, like, editorials, stories.

jonathan mahler

Yes, I mean, just throws the weight of his tabloid behind her. And this is a very influential tabloid.

jim rutenberg

And creams her rivals.

jonathan mahler

Yes.

jim rutenberg

And creams that left-leaning Labour Party. And when she gets into office, lo and behold, the regulators who could get in the way of a deal like buying The Times of London look the other way. So now he’s got three giant newspapers in London — cycle complete.

[music]

archived recording

The New York Post is a classic tabloid — brash, outspoken, controversial.

jonathan mahler

A few years later, Murdoch imports this same playbook to the United States.

archived recording

— has made its share of headlines, thanks to owner Rupert Murdoch.

jonathan mahler

And he buys a newspaper here, The New York Post.

archived recording (ronald reagan)

Good evening. I’m here tonight to announce my intention to seek the Republican nomination for president of the United States.

jonathan mahler

So in 1980, Reagan’s running for president. And Rupert Murdoch wants him to win. He puts the New York Post behind him.

archived recording (ronald reagan)

I believe that, together, we can keep this rendezvous with destiny.

jonathan mahler

He helps actually deliver New York State to Ronald Reagan. Reagan is enormously grateful. And a relationship is forged.

archived recording (ronald reagan)

Thank you and good night.

jonathan mahler

So now he has in the White House a friend, an ally, someone who owes him and can help him kind of advance his agenda in the U.S. And so that agenda, early on, includes getting into television. And Rupert, you know, it was no problem for him to buy The New York Post. But in order to buy a TV station, you need to be an American citizen. It’s federally regulated.

michael barbaro

So he has to get citizenship.

archived recording

Rupert Murdoch decided to become an American citizen so he could buy six American television stations.

jonathan mahler

And so he turns to Reagan, who fast-tracks his application.

michael barbaro

As president.

jonathan mahler

As president. And enables him to get into TV.

michael barbaro

And does he, in fact, buy TV stations?

jonathan mahler

He does indeed, and, in fact, launches what becomes the Fox network. And we’re not talking about Fox News, but the Fox broadcasting network, which becomes this unlikely competitor to the big three broadcast networks.

archived recording

Starting on April 5, you’ll view Sundays in a whole new light.

michael barbaro

Right, so when I was growing up, it was ABC, CBS, NBC. And then suddenly, there was Channel 5.

jonathan mahler

Suddenly there was Channel 5, which was Fox, which was —

michael barbaro

Which was Rupert Murdoch.

jonathan mahler

Which was Rupert Murdoch.

archived recording

This is the Fox Broadcasting Company.

michael barbaro

O.K., so by using this playbook, Rupert Murdoch is able to create this Fox broadcasting network. And what happens after that?

jonathan mahler

Well, he also buys what was then known as 20th Century Fox, a massive Hollywood studio. The empire gets bigger and bigger and bigger.

archived recording

What do you think you’re offering people that they would want to watch?

archived recording (rupert murdoch)

Choice, much more choice.

jonathan mahler

And then in the mid-‘90s, he launches a 24-hour cable news channel, Fox News.

archived recording (bill o'reilly)

Hi, I’m Bill O’Reilly. Thank you for watching on our very first day. How did it happen? How did television news become so predictable, and in some cases, so boring?

jonathan mahler

Which, you know, very quickly becomes this incredibly powerful force in American politics.

archived recording (bill o'reilly)

Few broadcasts take any chances these days. And most are very politically correct. Well, we’re going to try to be different, stimulating, and a bit daring, but at the same time, responsible and fair.

[music]

archived recording 1

President Bush winning more votes than any president in history.

archived recording 2

But after another hour of Barack Obama explaining his program, I still don’t know what it is. The man is incapable of breaking it down so that we, the people, can understand it. That’s the crux of the matter. It’s supplemental. It’s elemental. It’s crazy.

archived recording 3

How precisely is diversity our strength? Since you’ve made this our new national motto, please be specific, as you explain it. Can you think, for example, of other institutions, such as — I don’t know — marriage or military units, in which the less people have in common, the more cohesive they are.

jonathan mahler

And at a certain point, Rupert Murdoch is, in many ways, dictating Republican policy. He’s leading the conservative movement in different directions.

archived recording (donald trump)

Sean Hannity, come on up. Sean Hannity. [APPLAUSE]

jim rutenberg

And in so doing, what it’s really helping foment and add to is this populist wave.

archived recording

We want to control our own country.

jim rutenberg

In the U.K., it’s anti-Europe.

archived recording

We want Brexit!

jim rutenberg

In the U.S., it’s hell with all this P.C. culture. And he gets behind Donald Trump.

archived recording

Build a wall! Build a wall!

jim rutenberg

So enter our times, like, here we are, Brexit and Donald Trump.

archived recording (donald trump)

Build that wall! Build that wall! Built that wall!

jim rutenberg

There are multiple forces behind all of this. And we’ll be studying that for decades. But the common denominator is Rupert Murdoch and his media empire.

jonathan mahler

And so that is what his children are fighting over. It is this media empire, which has the power to change politics and governments all over the world. That’s what’s at stake here when Rupert falls on his son’s yacht.

[music]

michael barbaro

We’ll be right back.

O.K., so tell me about these children who are poised to take over the Murdoch media empire.

jonathan mahler

So Rupert has six children, two teenage daughters, four adult children, whom we already mentioned. And of those four, the only two who were really in the succession mix were the two boys, either Lachlan, his eldest son, or James, his younger son.

michael barbaro

O.K., so who are these two sons who stand to inherit the company?

jim rutenberg

Well, there’s the first-born, Lachlan, born in ‘71, mostly raised in New York. And history repeats itself — learning at dad’s knee, watching, going over the newspapers every morning. He goes to Princeton. He studies philosophy. He’s into Hegel and Kant. But he really loves Australia. He identifies with it. And he takes a series of jobs there, where he becomes this kind of big figure in Australian media, because Murdoch’s so powerful by then. And he’s seen around town on his motorcycle. He’s known for his cool armband tattoo. He’s a rock climber. He’s like — he had even served as a jackaroo. One of his summer jobs —

michael barbaro

What is a jackaroo?

jim rutenberg

Well, I’m told that a jackaroo kind of helps deal with the — really, manhandles the animals on the farm.

jonathan mahler

Like herding, it’s, like, sheep and goat herding —

jim rutenberg

But we heard that —

jonathan mahler

And vaccinating, yeah.

jim rutenberg

We heard he would literally, physically vaccinate the sheep, like, inject them.

michael barbaro

So kind of a swashbuckler.

jim rutenberg

He’s swashbuckler.

jonathan mahler

Yes, very much, yeah.

jim rutenberg

And he’s known early on to kind of identify with his father’s politics. But those who work with him say he’s even maybe more conservative than his father.

michael barbaro

O.K., so that is Lachlan. What about the other son, James?

jonathan mahler

Yeah, well, James is 18 months younger than Lachlan. And he’s considered to be the family rebel when he was younger. He had dyed his hair. He pierced his ears. He went to Harvard.

michael barbaro

Which is not so rebellious.

jonathan mahler

Well, you know, you can’t have everything. While at Harvard, he considers becoming a medieval historian, so he’s considering maybe going into academia, which is a sort of surprising notion for a young Murdoch. And he ends up dropping out of Harvard. He goes off to follow the Grateful Dead. He’s, like, a big Deadhead.

michael barbaro

Wow.

jonathan mahler

Yeah. And after that, he starts a hip-hop label called Rawkus Records. And the label, which actually does very well — I mean, they certainly have some pretty well-known hip-hop artists. And after about a year with him at this hip-hop label, his father buys the label and brings James into the company. And that’s sort of the end of James’s kind of brief foray outside the business. And now, he’s sort of squarely part of the Murdoch empire and in contention for the throne.

michael barbaro

And what are his politics like at this phase?

jonathan mahler

Yeah, James is far, far more centrist than Lachlan. He’s a big environmentalist, really sort of focused on climate change. You wouldn’t call him a liberal. But you would certainly call him a centrist, someone with moderate politics. He also had no attachment whatsoever to Australia.

michael barbaro

It sounds like Lachlan and James are —

jonathan mahler

Oil and water.

michael barbaro

— not exactly on the same page.

jim rutenberg

Chalk and cheese is the way they put it in Australia.

jonathan mahler

Yeah.

michael barbaro

And do they get along?

jim rutenberg

Uh —

jonathan mahler

No.

jim rutenberg

Really no. So you can imagine why they’d have two very different visions and want to take the company in two very different directions.

michael barbaro

And listening to you describe these two, it would feel almost inevitable that Rupert Murdoch would identify a bit more with Lachlan, the Australian-loving, conservatively-inclined, firstborn son.

jonathan mahler

Right.

michael barbaro

So is Lachlan a kind of obvious choice to run the company?

jim rutenberg

He is definitely the leading contender. And Rupert brings Lachlan back from Australia. And he sets up in New York. And he starts working in television stations. He goes and works in L.A., and deals with the movie studios, and gets to know the big executives, all of whom have their own ambitions and see Lachlan and his brother, for that matter, as these entitled princelings.

michael barbaro

And kind of a threat to them.

jim rutenberg

Definitely a threat to them. And there’s some resentment. So it’s a frustrating period for Lachlan this time around. We’ve heard stories of executives rolling their eyes when Lachlan speaks. Finally, he has a very big clash with the famous chairman of Fox News, Roger Ailes, who’s just a bombastic, larger-than-life character and wants nothing to do with Lachlan. And when he and Lachlan clash on a pretty small programming issue, Roger Ailes goes to Rupert. And it gets back to Lachlan that Rupert says, don’t worry about the boy. And right on the spot, Lachlan quits.

michael barbaro

Wow.

jim rutenberg

And he up and just leaves the country, right back to Australia.

[music]

michael barbaro

O.K., so at this point, does Rupert turn to James as the logical heir?

jonathan mahler

Yes, that’s exactly what happens. Lachlan is gone. He’s in self-imposed exile in Australia. And James now steps up and sort of seizes his opportunity to become the heir.

michael barbaro

And what is James’s vision for this media empire?

jonathan mahler

So James has a very different vision from his brother, certainly, and his father. He’s sort of a Davos-style executive, a globalist who wants to move the company into new markets, move the company away from this sort of purely kind of political identity, and become a kind of progressive, carbon-neutral — he actually leads an initiative to convert all of their offices to carbon neutral.

michael barbaro

That doesn’t sound Murdochian.

jonathan mahler

It does not sound Murdochian, no.

michael barbaro

And in terms of the politics of the company, how it presents the world, the events it chooses to try to influence, what does he see?

jonathan mahler

Well, he would like the company to be more politically neutral, I mean, to be a centrist company that isn’t pushing a political agenda, but, rather, is just kind of moving forward with its own agenda. So I mean, it’s a very different vision than the one that his father had had for so many years during his decades of empire-building and pushing his politics.

jim rutenberg

So there’s a moment where this company could be very different.

michael barbaro

And so how does that work out for James?

jonathan mahler

Well, he’s on his way, when —

[music]

archived recording

Media tycoon Rupert Murdoch didn’t only deliver the news this week, Murdoch was the news.

jonathan mahler

All of his efforts get completely undone by a massive scandal.

archived recording

Murdoch’s journalists have been hacking into the cell phones of the owners and users of those phones. Police reports say there could be as many as 4,000 victims.

jonathan mahler

Really, the biggest scandal that the Murdoch family and empire has ever faced.

archived recording

The paper accused of hacking the phones of celebrities, politicians, and even the voicemail of a murdered teenager.

jonathan mahler

One of the Murdoch papers, The News of the World, has been hacking into the phones and stealing their personal messages for dirt to sell papers.

archived recording

The company’s best-selling paper, the News of the World, has been closed down because it became too much of a liability.

jonathan mahler

And that becomes an enormous, enormous, international front-page scandal in the year 2011.

archived recording 1

— London with the latest. Jeffrey, this story just continues to unfold at a massive rate.

archived recording 2

It sure does, Elizabeth. This scandal has rocked his media empire to the core.

jonathan mahler

And James, at the time, is running the company. And it all sort of falls on him.

archived recording

The issue all along has been how much the management of the paper knew about the phone-hacking its reporters were involved in. James Murdoch had signed the check settling some of the claims. But —

jonathan mahler

Really, what happens here, you know, you might imagine, in some families, this might be a time for the father and son to sort of bond together and figure out how to fight this thing off. But what happens in the case of Rupert and James now is they basically blame each other for the hacking scandal. James feels like, my father’s company is a mess. The culture of this company is out of control. And now he’s essentially throwing me in front of it, his son.

michael barbaro

Wow.

jonathan mahler

And Rupert feels like, I put you in charge of my operation over there. This scandal has been brewing for years. And you have failed to contain it. How is that possible?

archived recording

That’s right. It was a very public family drama, a dynasty scrambling to save itself from destruction.

jim rutenberg

So it’s complete chaos. James is blaming Rupert. Rupert is blaming James. The whole succession thing is now completely kaput. It’s up in the air. There’s no clear heir apparent. And then Lachlan returns. He calls his father and says, I’m going to fly there from Australia.

jonathan mahler

Lachlan arrives in London. He swoops into the offices there. He is tan. He’s fit. He’s somehow miraculously looking rested, even though he’s just flown halfway around the world. And he is sort of instantly a comfort to his father.

michael barbaro

And so, suddenly, he may, in fact, be back in the game as an heir to this whole thing.

jonathan mahler

Correct.

archived recording

Lachlan Murdoch, it looks like, is going to emerge. One time, the clear crown prince, then a dark horse, now back in the game.

jonathan mahler

So for a couple of years, it seems as though Lachlan is now just kind of edging James out.

archived recording 1

As a result, many believe that this makes Lachlan the heir apparent to take over his father’s media empire. Mr. Murdoch —

archived recording 2

— also this seemingly reversal of fortunes for James Murdoch.

jonathan mahler

But Rupert hasn’t made a decision yet. To do so, for one, would sort of suggest his own mortality. But it’s also entirely possible that he, in fact, doesn’t trust either one of his sons to take over his empire. So that’s where things are when he trips and falls on the yacht. And once again, everything is up in the air.

michael barbaro

So what ends up happening to Rupert Murdoch after this pretty bad fall?

jonathan mahler

So not only does Rupert Murdoch recover, he goes on to do something incredibly surprising, something incredibly dramatic —

archived recording

Well, there’s Rupert Murdoch. And for more than 50 years, his media empire has been getting bigger and bigger. But today, all of that changed. Walt Disney —

jonathan mahler

— and, in fact, un-Murdochian.

archived recording

Let’s start with one of the biggest deals the media industry has ever seen.

jonathan mahler

He proceeds with what is ultimately the single biggest deal of his life.

michael barbaro

And what’s that deal?

jonathan mahler

He sells.

archived recording

A mega-merger to combine Disney with much of 21st Century Fox.

jonathan mahler

He sells roughly two-thirds of the company 21st Century Fox, the massive Hollywood studio, to Disney.

michael barbaro

Two-thirds of his company in one deal?

jonathan mahler

In one fell swoop.

michael barbaro

And why is Murdoch doing this?

jonathan mahler

So it’s a solution, really, on two levels. On one, it’s a solution to his business problem, which is that it’s becoming increasingly difficult for him to compete with the new tech streaming companies like Netflix, and Amazon, and Apple. But it’s also a solution to the succession problem.

jim rutenberg

He’s got these two sons. They’re at each other’s throats. They don’t get along. It’s believed he doesn’t necessarily even trust either one of them to carry the big company forward. So now, he will shrink the company, give it to one of the sons, and the other one can go on his merry way.

michael barbaro

So what’s left of this company? And who is to lead it, which one of them?

jonathan mahler

So what’s left are really the tools of influence, a political weapon. It’s Fox News. It’s the Murdoch newspapers around the world. It’s a diminished empire, but it’s still a very politically potent empire. And the man who is left to run it is Lachlan. He, at this moment, becomes the true heir. He takes the throne.

michael barbaro

And what does Lachlan do with these tools of influence that we know well, especially here in the United States, that he now has control over?

[music]

archived recording

I don’t know about you, but I’m sick and tired of political correctness, censorship and fake news.

jonathan mahler

Well, he’s clearly moving the company in the same direction that his father was taking it in.

archived recording

This is your nation. This is our nation. This is Fox Nation. [CHEERING]

jonathan mahler

One of the first things he does is he launches this new streaming service called Fox Nation.

archived recording 1

And along with my Fox Nation friends, we’re going to give you that place where your values, your communities, your voice is represented. And yes, at times, it may be politically incorrect. But it will always be intellectually honest.

jonathan mahler

And it’s sort of built for Fox superfans. They pay subscriptions. So they don’t have to worry about advertising boycotts. So it can be even sort of edgier and even more right wing.

archived recording

Are you freaking kidding me? She thinks voting for someone other than her lying, email-deleting, rotten self must be motivated by racism and white supremacy. How absolutely false and disgusting.

jonathan mahler

So he’s basically moving the network even more directly toward the base.

archived recording

That’s been her specialty and the only thing she’s done since November 2016.

jonathan mahler

And on top of that, it’s easy to see how the whole empire could actually become more conservative now, because 21st Century Fox was this massive, liberal Hollywood studio, which served as a kind of check on some of the truly kind of hardcore, right-wing impulses of the empire. So that’s gone. And now, of course, James is gone. And James, as we know, was trying to push the company into a more politically neutral direction. So those two impediments have been removed. And now, it can really march further and more aggressively to the right.

michael barbaro

And Jim, what happens to James Murdoch now?

jim rutenberg

He’s, interestingly, going to join with his wife to, among other things, invest in programs that combat the things they worry about Fox causing. They are going to invest in programs to fight illiberalism around the world, boost centrist political organizations, invest in voting and things that are really kind of counter-programming to the ideology that the empire he’s leaving behind pumps out regularly.

[music]

jonathan mahler

So it’s no longer a succession drama. Succession has finally been resolved. But it’s still a family drama, because James is now going off on his own with every intention of investing in big initiatives to effectively undermine the political agenda of the Murdoch empire.

michael barbaro

Wow. And so, essentially, the war over this business will take a new form.

jonathan mahler

Exactly. James will be on the outside. Lachlan will be on the inside. But the war will continue.

[music]

michael barbaro

Jonathan, Jim, thank you very much. Appreciate it.

jonathan mahler

Thank you, Michael.

jim rutenberg

Thanks, Michael.

[music]

michael barbaro

Here’s what else you need to know today.

archived recording

The crew performed all the procedures repeatedly provided by the manufacturer.

michael barbaro

Investigators have found that the pilots of a Boeing 737 Max 8 that crashed in Ethiopia followed the emergency safety procedures recommended by Boeing, suggesting that pilot error was not a factor in the jet’s crash. The investigation has concluded that, moments after takeoff, one of the jet’s sensors began fluctuating wildly, erroneously indicating that the jet was about to stall, triggering an automated system that pushed down its nose, a situation that doomed the same Boeing model in Indonesia six months ago. The pilots in Ethiopia then did what Boeing recommends, cutting off electricity to the automated system. But the nose kept pushing down, and the jet quickly crashed, killing everyone onboard.

archived recording

It is recommended that the aircraft flight control system related to the flight controllability shall be reviewed by the manufacturer.

michael barbaro

And, in a major reversal, the Mormon Church said that it would no longer treat same-sex couples as unworthy of the faith and would end a ban on baptizing the children of same-sex couples. The decision rolls back a 2015 rule that has ripped apart Mormon congregations and driven away many church members. The Times reports that the change in policy is an attempt to bring those members back and bring the Mormon Church in line with mainstream American views.

The Daily is produced by Theo Balcomb, Lynsea Garrison, Rachel Quester, Annie Brown, Andy Mills, Clare Toeniskoetter, Michael Simon Johnson, Jessica Cheung, Alexandra Leigh Young and Jonathan Wolfe, and edited by Paige Cowett, Larissa Anderson and Wendy Dorr. Lisa Tobin is our executive producer. Samantha Henig is our editorial director. Our technical manager is Brad Fisher. Our engineer is Chris Wood. And our theme music is by Jim Brunberg and Ben Landsverk of Wonderly. Special thanks to Sam Dolnick, Mikayla Bouchard, Stella Tan and Susan Beachy.

That’s it for The Daily. I’m Michael Barbaro. See you on Monday.

The Battle to Control the Murdoch Media Empire

Rupert Murdoch’s media outlets have helped destabilize democracy on three continents. The power struggle among his children has world-changing consequences.

Hosted by Michael Barbaro, produced by Clare Toeniskoetter, and edited by Wendy Dorr, Lisa Chow and Lisa Tobin
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transcript

The Battle to Control the Murdoch Media Empire

Hosted by Michael Barbaro, produced by Clare Toeniskoetter, and edited by Wendy Dorr, Lisa Chow and Lisa Tobin

Rupert Murdoch’s media outlets have helped destabilize democracy on three continents. The power struggle among his children has world-changing consequences.

michael barbaro

From The New York Times, I’m Michael Barbaro. This is “The Daily.”

Today: Through his media empire, Rupert Murdoch has reshaped the politics of countries across the English-speaking world, pushing their governments to the right. Inside the bitter struggle between his sons over who would control that empire once he’s gone.

It’s Friday, April 5.

jonathan mahler

So the story begins in January 2018 with Rupert Murdoch, 86 years old, the most powerful media mogul in the world, with his fourth wife, Jerry Hall, Mick Jagger’s ex. And they borrow his son Lachlan’s 140-foot yacht.

[music]

jim rutenberg

I mean, “yacht” doesn’t even begin to describe it. It is a floating pleasure palace.

michael barbaro

Jim Rutenberg and Jonathan Mahler spent six months investigating the Murdoch family for The Times Magazine.

jim rutenberg

There’s one room that has all the stars of the sky in the ceiling. One switch turns on the Southern Hemisphere constellations. The other one turns on the Northern Hemisphere constellations. The cockpit turns into a swimming pool because you never know when you want to take a dip. There’s even a rock climbing kind of training apparatus. So you set that up on the deck and practice your rock climbing.

michael barbaro

So this boat is kind of a floating portrait of luxury.

jonathan mahler

Yes. But it’s also a sailboat. And Rupert Murdoch is an 86-year-old man. And it’s not easy to navigate a sailboat, especially in the middle of the night.

So Rupert Murdoch is on his way to the bathroom in his cabin. And he trips, and he falls. And he can’t move. He’s stretchered off the boat. He is initially seen at a hospital in the Caribbean. They saw how serious his condition was, that it was potentially fatal. And he’s airlifted to Los Angeles, to the U.C.L.A. Medical Center, and ultimately goes into emergency surgery.

[music]

jim rutenberg

So at this point, Jerry Hall, his fourth wife, begins calling the children, Lachlan, James, Elizabeth and Prudence, who live in different parts of the world. And they all fly in to Los Angeles to be by their father’s bedside.

jonathan mahler

And there’s a whole sort of subtext here. They’ve literally spent their entire lives jockeying and competing with each other to become the heir to this empire. So the subtext is, who is going to run this company when our dad is gone, that not only are they all coming to possibly say goodbye to their father, but the whole Murdoch empire is up for grabs.

michael barbaro

Because it sounds like there is no plan in place if Murdoch dies at this moment.

jonathan mahler

Correct. I mean, everything is now up in the air.

michael barbaro

O.K., so just how big and important is this media empire that’s now hanging in the balance?

jonathan mahler

It is enormous.

archived recording

[20TH CENTURY FOX MUSIC]

jonathan mahler

It is a massive Hollywood studio.

archived recording

(SINGING) The Simpsons.

jonathan mahler

It is multiple TV stations. It is dozens of newspapers. It’s really media outlets across the English-speaking world.

jim rutenberg

In the U.S., of course, it’s Fox News.

archived recording

America needs just one channel that has a somewhat different point of view.

jim rutenberg

But it’s also the 21st Century Fox movie studio. It’s The New York Post. It’s The Wall Street Journal. It’s the Dow Jones wire.

archived recording (john bercow)

Order!

jim rutenberg

In the U.K., it’s leading newspapers like —

archived recording

Today, you should order The Sun.

jim rutenberg

— the tabloid U.K. Sun and the more establishment Times of London.

archived recording

Hello, and welcome to Sky News.

jim rutenberg

It’s Sky News, cable news. And it’s Sky’s satellite service, which is gigantic.

archived recording 1

Well, thanks for coming in this morning, Will.

archived recording 2

No problem.

jim rutenberg

And in Australia, their media power is at its most undiluted. The Murdoch papers account for 60 percent of newspaper sales. And they have a cable news service as well.

jonathan mahler

So what all of these outlets add up to is more than just kind of a media company in the traditional sense. It’s a media empire, all controlled by one man who can use them as a tool of influence to shape political landscapes all across the world.

I mean, he’s an empire builder in the kind of original sense of the term. He wants to continuously grow his empire. And that works perfectly with his influence, because it enables him to knock down any barriers to growth that he needs.

[music]

jonathan mahler

And this instinct, this sort of desire for territorial conquest, he learned it from his dad.

michael barbaro

And who is his dad?

jim rutenberg

Well, his father, Sir Keith Murdoch, was a newspaperman himself. He worked for and basically led what became the first national news chain in Australia. His father is also very conservative. He had written a paper as a young man about the need for a white Australia.

michael barbaro

A white Australia.

jonathan mahler

Yep, he was a member of the Royal Eugenics Society. I mean, he was a proto-white nationalist.

michael barbaro

Hmm.

jim rutenberg

And he’s willing to use his newspapers to push into office people who do his bidding, people who will help him grow his media business and suspend regulations. And young Rupert is taking all of this in in the family house, learning the ways of the business from dad.

jonathan mahler

Then he goes off to Oxford as a young man. But his father dies abruptly. And you know, Rupert, at this point, has sort of — you know, not only has he grown up studying the newspaper with his father, but he’s done an apprenticeship on Fleet Street. So he’s —

michael barbaro

Which is kind of the media center of London.

jonathan mahler

It’s the media center of London. And it’s also the media center of tabloid London and the populist idea, essentially. So Rupert kind of has that in his blood already. And he returns home to Australia at the age of 22 to inherit a single newspaper with a circulation of around 100,000 —

michael barbaro

Pretty small.

jonathan mahler

— a regional newspaper, a small newspaper. And this becomes the beginning of the Murdoch empire.

[music]

archived recording

Over Sydney Harbour Bridge by Rolls-Royce, Rupert Murdoch on his way to his office.

jonathan mahler

He uses his one newspaper to wield power and get what he needs, influence politicians, clearing anti-monopoly rules out of his way so that he can buy another newspaper.

archived recording

Murdoch inherited the basis of his newspaper empire from his father, built on it and enlarged it to cover every state in Australia.

jonathan mahler

And he gradually starts to build what is effectively a media monopoly in Australia.

archived recording

He’s chubby-cheeked and open-faced, but underneath, say those who know him, he’s a man of steel, ruthless in getting his own way, iron-willed in seeing that his plans are carried through.

jonathan mahler

Murdoch essentially develops what becomes the Murdoch playbook.

archived recording

You do like the feeling of power you have as a newspaper proprietor and being able to sort of formulate policies for a large number of newspapers in every state of Australia.

archived recording (rupert murdoch)

Yes.

jonathan mahler

Reward your allies and punish your enemies. And you know, he has a growing empire with which to do that.

michael barbaro

And tell me how this playbook works in practice.

jim rutenberg

Well, let me tell you a story, an early story of Murdoch’s origins.

archived recording

If the News of the World deal goes through, he’ll transfer his base to London.

jim rutenberg

Rupert Murdoch, having gotten his empire underway solidly in Australia, returns to London.

archived recording

He says the News of the World organization is now ripe for expansion into TV or possibly a new daily.

jim rutenberg

And in the late ‘60s buys The News of the World, a major tabloid. He buys the U.K. Sun, another big tabloid.

archived recording

He takes an active part in what goes into his papers, even going into the composing room to supervise what’s in the page proofs for next day’s edition.

jim rutenberg

He wants more. He wants to own The Times of London, the establishment broadsheet that speaks to the elite, so he has the whole market kind of covered. But he runs into a problem. The United Kingdom had strict media rules. They don’t want one person to own that much influence, to have so many newspapers in a single market, London. But —

archived recording (margaret thatcher)

What a contrast with us. While Labour’s pessimistic, we are full of hope.

jim rutenberg

He finds a solution in getting behind Margaret Thatcher, conservative icon, rising right-leaning star of British politics.

archived recording (margaret thatcher)

We rise to the challenge, to the excitement and the adventure.

jim rutenberg

Puts his tabloids behind her.

michael barbaro

Literally, like, editorials, stories.

jonathan mahler

Yes, I mean, just throws the weight of his tabloid behind her. And this is a very influential tabloid.

jim rutenberg

And creams her rivals.

jonathan mahler

Yes.

jim rutenberg

And creams that left-leaning Labour Party. And when she gets into office, lo and behold, the regulators who could get in the way of a deal like buying The Times of London look the other way. So now he’s got three giant newspapers in London — cycle complete.

[music]

archived recording

The New York Post is a classic tabloid — brash, outspoken, controversial.

jonathan mahler

A few years later, Murdoch imports this same playbook to the United States.

archived recording

— has made its share of headlines, thanks to owner Rupert Murdoch.

jonathan mahler

And he buys a newspaper here, The New York Post.

archived recording (ronald reagan)

Good evening. I’m here tonight to announce my intention to seek the Republican nomination for president of the United States.

jonathan mahler

So in 1980, Reagan’s running for president. And Rupert Murdoch wants him to win. He puts the New York Post behind him.

archived recording (ronald reagan)

I believe that, together, we can keep this rendezvous with destiny.

jonathan mahler

He helps actually deliver New York State to Ronald Reagan. Reagan is enormously grateful. And a relationship is forged.

archived recording (ronald reagan)

Thank you and good night.

jonathan mahler

So now he has in the White House a friend, an ally, someone who owes him and can help him kind of advance his agenda in the U.S. And so that agenda, early on, includes getting into television. And Rupert, you know, it was no problem for him to buy The New York Post. But in order to buy a TV station, you need to be an American citizen. It’s federally regulated.

michael barbaro

So he has to get citizenship.

archived recording

Rupert Murdoch decided to become an American citizen so he could buy six American television stations.

jonathan mahler

And so he turns to Reagan, who fast-tracks his application.

michael barbaro

As president.

jonathan mahler

As president. And enables him to get into TV.

michael barbaro

And does he, in fact, buy TV stations?

jonathan mahler

He does indeed, and, in fact, launches what becomes the Fox network. And we’re not talking about Fox News, but the Fox broadcasting network, which becomes this unlikely competitor to the big three broadcast networks.

archived recording

Starting on April 5, you’ll view Sundays in a whole new light.

michael barbaro

Right, so when I was growing up, it was ABC, CBS, NBC. And then suddenly, there was Channel 5.

jonathan mahler

Suddenly there was Channel 5, which was Fox, which was —

michael barbaro

Which was Rupert Murdoch.

jonathan mahler

Which was Rupert Murdoch.

archived recording

This is the Fox Broadcasting Company.

michael barbaro

O.K., so by using this playbook, Rupert Murdoch is able to create this Fox broadcasting network. And what happens after that?

jonathan mahler

Well, he also buys what was then known as 20th Century Fox, a massive Hollywood studio. The empire gets bigger and bigger and bigger.

archived recording

What do you think you’re offering people that they would want to watch?

archived recording (rupert murdoch)

Choice, much more choice.

jonathan mahler

And then in the mid-‘90s, he launches a 24-hour cable news channel, Fox News.

archived recording (bill o'reilly)

Hi, I’m Bill O’Reilly. Thank you for watching on our very first day. How did it happen? How did television news become so predictable, and in some cases, so boring?

jonathan mahler

Which, you know, very quickly becomes this incredibly powerful force in American politics.

archived recording (bill o'reilly)

Few broadcasts take any chances these days. And most are very politically correct. Well, we’re going to try to be different, stimulating, and a bit daring, but at the same time, responsible and fair.

[music]

archived recording 1

President Bush winning more votes than any president in history.

archived recording 2

But after another hour of Barack Obama explaining his program, I still don’t know what it is. The man is incapable of breaking it down so that we, the people, can understand it. That’s the crux of the matter. It’s supplemental. It’s elemental. It’s crazy.

archived recording 3

How precisely is diversity our strength? Since you’ve made this our new national motto, please be specific, as you explain it. Can you think, for example, of other institutions, such as — I don’t know — marriage or military units, in which the less people have in common, the more cohesive they are.

jonathan mahler

And at a certain point, Rupert Murdoch is, in many ways, dictating Republican policy. He’s leading the conservative movement in different directions.

archived recording (donald trump)

Sean Hannity, come on up. Sean Hannity. [APPLAUSE]

jim rutenberg

And in so doing, what it’s really helping foment and add to is this populist wave.

archived recording

We want to control our own country.

jim rutenberg

In the U.K., it’s anti-Europe.

archived recording

We want Brexit!

jim rutenberg

In the U.S., it’s hell with all this P.C. culture. And he gets behind Donald Trump.

archived recording

Build a wall! Build a wall!

jim rutenberg

So enter our times, like, here we are, Brexit and Donald Trump.

archived recording (donald trump)

Build that wall! Build that wall! Built that wall!

jim rutenberg

There are multiple forces behind all of this. And we’ll be studying that for decades. But the common denominator is Rupert Murdoch and his media empire.

jonathan mahler

And so that is what his children are fighting over. It is this media empire, which has the power to change politics and governments all over the world. That’s what’s at stake here when Rupert falls on his son’s yacht.

[music]

michael barbaro

We’ll be right back.

O.K., so tell me about these children who are poised to take over the Murdoch media empire.

jonathan mahler

So Rupert has six children, two teenage daughters, four adult children, whom we already mentioned. And of those four, the only two who were really in the succession mix were the two boys, either Lachlan, his eldest son, or James, his younger son.

michael barbaro

O.K., so who are these two sons who stand to inherit the company?

jim rutenberg

Well, there’s the first-born, Lachlan, born in ‘71, mostly raised in New York. And history repeats itself — learning at dad’s knee, watching, going over the newspapers every morning. He goes to Princeton. He studies philosophy. He’s into Hegel and Kant. But he really loves Australia. He identifies with it. And he takes a series of jobs there, where he becomes this kind of big figure in Australian media, because Murdoch’s so powerful by then. And he’s seen around town on his motorcycle. He’s known for his cool armband tattoo. He’s a rock climber. He’s like — he had even served as a jackaroo. One of his summer jobs —

michael barbaro

What is a jackaroo?

jim rutenberg

Well, I’m told that a jackaroo kind of helps deal with the — really, manhandles the animals on the farm.

jonathan mahler

Like herding, it’s, like, sheep and goat herding —

jim rutenberg

But we heard that —

jonathan mahler

And vaccinating, yeah.

jim rutenberg

We heard he would literally, physically vaccinate the sheep, like, inject them.

michael barbaro

So kind of a swashbuckler.

jim rutenberg

He’s swashbuckler.

jonathan mahler

Yes, very much, yeah.

jim rutenberg

And he’s known early on to kind of identify with his father’s politics. But those who work with him say he’s even maybe more conservative than his father.

michael barbaro

O.K., so that is Lachlan. What about the other son, James?

jonathan mahler

Yeah, well, James is 18 months younger than Lachlan. And he’s considered to be the family rebel when he was younger. He had dyed his hair. He pierced his ears. He went to Harvard.

michael barbaro

Which is not so rebellious.

jonathan mahler

Well, you know, you can’t have everything. While at Harvard, he considers becoming a medieval historian, so he’s considering maybe going into academia, which is a sort of surprising notion for a young Murdoch. And he ends up dropping out of Harvard. He goes off to follow the Grateful Dead. He’s, like, a big Deadhead.

michael barbaro

Wow.

jonathan mahler

Yeah. And after that, he starts a hip-hop label called Rawkus Records. And the label, which actually does very well — I mean, they certainly have some pretty well-known hip-hop artists. And after about a year with him at this hip-hop label, his father buys the label and brings James into the company. And that’s sort of the end of James’s kind of brief foray outside the business. And now, he’s sort of squarely part of the Murdoch empire and in contention for the throne.

michael barbaro

And what are his politics like at this phase?

jonathan mahler

Yeah, James is far, far more centrist than Lachlan. He’s a big environmentalist, really sort of focused on climate change. You wouldn’t call him a liberal. But you would certainly call him a centrist, someone with moderate politics. He also had no attachment whatsoever to Australia.

michael barbaro

It sounds like Lachlan and James are —

jonathan mahler

Oil and water.

michael barbaro

— not exactly on the same page.

jim rutenberg

Chalk and cheese is the way they put it in Australia.

jonathan mahler

Yeah.

michael barbaro

And do they get along?

jim rutenberg

Uh —

jonathan mahler

No.

jim rutenberg

Really no. So you can imagine why they’d have two very different visions and want to take the company in two very different directions.

michael barbaro

And listening to you describe these two, it would feel almost inevitable that Rupert Murdoch would identify a bit more with Lachlan, the Australian-loving, conservatively-inclined, firstborn son.

jonathan mahler

Right.

michael barbaro

So is Lachlan a kind of obvious choice to run the company?

jim rutenberg

He is definitely the leading contender. And Rupert brings Lachlan back from Australia. And he sets up in New York. And he starts working in television stations. He goes and works in L.A., and deals with the movie studios, and gets to know the big executives, all of whom have their own ambitions and see Lachlan and his brother, for that matter, as these entitled princelings.

michael barbaro

And kind of a threat to them.

jim rutenberg

Definitely a threat to them. And there’s some resentment. So it’s a frustrating period for Lachlan this time around. We’ve heard stories of executives rolling their eyes when Lachlan speaks. Finally, he has a very big clash with the famous chairman of Fox News, Roger Ailes, who’s just a bombastic, larger-than-life character and wants nothing to do with Lachlan. And when he and Lachlan clash on a pretty small programming issue, Roger Ailes goes to Rupert. And it gets back to Lachlan that Rupert says, don’t worry about the boy. And right on the spot, Lachlan quits.

michael barbaro

Wow.

jim rutenberg

And he up and just leaves the country, right back to Australia.

[music]

michael barbaro

O.K., so at this point, does Rupert turn to James as the logical heir?

jonathan mahler

Yes, that’s exactly what happens. Lachlan is gone. He’s in self-imposed exile in Australia. And James now steps up and sort of seizes his opportunity to become the heir.

michael barbaro

And what is James’s vision for this media empire?

jonathan mahler

So James has a very different vision from his brother, certainly, and his father. He’s sort of a Davos-style executive, a globalist who wants to move the company into new markets, move the company away from this sort of purely kind of political identity, and become a kind of progressive, carbon-neutral — he actually leads an initiative to convert all of their offices to carbon neutral.

michael barbaro

That doesn’t sound Murdochian.

jonathan mahler

It does not sound Murdochian, no.

michael barbaro

And in terms of the politics of the company, how it presents the world, the events it chooses to try to influence, what does he see?

jonathan mahler

Well, he would like the company to be more politically neutral, I mean, to be a centrist company that isn’t pushing a political agenda, but, rather, is just kind of moving forward with its own agenda. So I mean, it’s a very different vision than the one that his father had had for so many years during his decades of empire-building and pushing his politics.

jim rutenberg

So there’s a moment where this company could be very different.

michael barbaro

And so how does that work out for James?

jonathan mahler

Well, he’s on his way, when —

[music]

archived recording

Media tycoon Rupert Murdoch didn’t only deliver the news this week, Murdoch was the news.

jonathan mahler

All of his efforts get completely undone by a massive scandal.

archived recording

Murdoch’s journalists have been hacking into the cell phones of the owners and users of those phones. Police reports say there could be as many as 4,000 victims.

jonathan mahler

Really, the biggest scandal that the Murdoch family and empire has ever faced.

archived recording

The paper accused of hacking the phones of celebrities, politicians, and even the voicemail of a murdered teenager.

jonathan mahler

One of the Murdoch papers, The News of the World, has been hacking into the phones and stealing their personal messages for dirt to sell papers.

archived recording

The company’s best-selling paper, the News of the World, has been closed down because it became too much of a liability.

jonathan mahler

And that becomes an enormous, enormous, international front-page scandal in the year 2011.

archived recording 1

— London with the latest. Jeffrey, this story just continues to unfold at a massive rate.

archived recording 2

It sure does, Elizabeth. This scandal has rocked his media empire to the core.

jonathan mahler

And James, at the time, is running the company. And it all sort of falls on him.

archived recording

The issue all along has been how much the management of the paper knew about the phone-hacking its reporters were involved in. James Murdoch had signed the check settling some of the claims. But —

jonathan mahler

Really, what happens here, you know, you might imagine, in some families, this might be a time for the father and son to sort of bond together and figure out how to fight this thing off. But what happens in the case of Rupert and James now is they basically blame each other for the hacking scandal. James feels like, my father’s company is a mess. The culture of this company is out of control. And now he’s essentially throwing me in front of it, his son.

michael barbaro

Wow.

jonathan mahler

And Rupert feels like, I put you in charge of my operation over there. This scandal has been brewing for years. And you have failed to contain it. How is that possible?

archived recording

That’s right. It was a very public family drama, a dynasty scrambling to save itself from destruction.

jim rutenberg

So it’s complete chaos. James is blaming Rupert. Rupert is blaming James. The whole succession thing is now completely kaput. It’s up in the air. There’s no clear heir apparent. And then Lachlan returns. He calls his father and says, I’m going to fly there from Australia.

jonathan mahler

Lachlan arrives in London. He swoops into the offices there. He is tan. He’s fit. He’s somehow miraculously looking rested, even though he’s just flown halfway around the world. And he is sort of instantly a comfort to his father.

michael barbaro

And so, suddenly, he may, in fact, be back in the game as an heir to this whole thing.

jonathan mahler

Correct.

archived recording

Lachlan Murdoch, it looks like, is going to emerge. One time, the clear crown prince, then a dark horse, now back in the game.

jonathan mahler

So for a couple of years, it seems as though Lachlan is now just kind of edging James out.

archived recording 1

As a result, many believe that this makes Lachlan the heir apparent to take over his father’s media empire. Mr. Murdoch —

archived recording 2

— also this seemingly reversal of fortunes for James Murdoch.

jonathan mahler

But Rupert hasn’t made a decision yet. To do so, for one, would sort of suggest his own mortality. But it’s also entirely possible that he, in fact, doesn’t trust either one of his sons to take over his empire. So that’s where things are when he trips and falls on the yacht. And once again, everything is up in the air.

michael barbaro

So what ends up happening to Rupert Murdoch after this pretty bad fall?

jonathan mahler

So not only does Rupert Murdoch recover, he goes on to do something incredibly surprising, something incredibly dramatic —

archived recording

Well, there’s Rupert Murdoch. And for more than 50 years, his media empire has been getting bigger and bigger. But today, all of that changed. Walt Disney —

jonathan mahler

— and, in fact, un-Murdochian.

archived recording

Let’s start with one of the biggest deals the media industry has ever seen.

jonathan mahler

He proceeds with what is ultimately the single biggest deal of his life.

michael barbaro

And what’s that deal?

jonathan mahler

He sells.

archived recording

A mega-merger to combine Disney with much of 21st Century Fox.

jonathan mahler

He sells roughly two-thirds of the company 21st Century Fox, the massive Hollywood studio, to Disney.

michael barbaro

Two-thirds of his company in one deal?

jonathan mahler

In one fell swoop.

michael barbaro

And why is Murdoch doing this?

jonathan mahler

So it’s a solution, really, on two levels. On one, it’s a solution to his business problem, which is that it’s becoming increasingly difficult for him to compete with the new tech streaming companies like Netflix, and Amazon, and Apple. But it’s also a solution to the succession problem.

jim rutenberg

He’s got these two sons. They’re at each other’s throats. They don’t get along. It’s believed he doesn’t necessarily even trust either one of them to carry the big company forward. So now, he will shrink the company, give it to one of the sons, and the other one can go on his merry way.

michael barbaro

So what’s left of this company? And who is to lead it, which one of them?

jonathan mahler

So what’s left are really the tools of influence, a political weapon. It’s Fox News. It’s the Murdoch newspapers around the world. It’s a diminished empire, but it’s still a very politically potent empire. And the man who is left to run it is Lachlan. He, at this moment, becomes the true heir. He takes the throne.

michael barbaro

And what does Lachlan do with these tools of influence that we know well, especially here in the United States, that he now has control over?

[music]

archived recording

I don’t know about you, but I’m sick and tired of political correctness, censorship and fake news.

jonathan mahler

Well, he’s clearly moving the company in the same direction that his father was taking it in.

archived recording

This is your nation. This is our nation. This is Fox Nation. [CHEERING]

jonathan mahler

One of the first things he does is he launches this new streaming service called Fox Nation.

archived recording 1

And along with my Fox Nation friends, we’re going to give you that place where your values, your communities, your voice is represented. And yes, at times, it may be politically incorrect. But it will always be intellectually honest.

jonathan mahler

And it’s sort of built for Fox superfans. They pay subscriptions. So they don’t have to worry about advertising boycotts. So it can be even sort of edgier and even more right wing.

archived recording

Are you freaking kidding me? She thinks voting for someone other than her lying, email-deleting, rotten self must be motivated by racism and white supremacy. How absolutely false and disgusting.

jonathan mahler

So he’s basically moving the network even more directly toward the base.

archived recording

That’s been her specialty and the only thing she’s done since November 2016.

jonathan mahler

And on top of that, it’s easy to see how the whole empire could actually become more conservative now, because 21st Century Fox was this massive, liberal Hollywood studio, which served as a kind of check on some of the truly kind of hardcore, right-wing impulses of the empire. So that’s gone. And now, of course, James is gone. And James, as we know, was trying to push the company into a more politically neutral direction. So those two impediments have been removed. And now, it can really march further and more aggressively to the right.

michael barbaro

And Jim, what happens to James Murdoch now?

jim rutenberg

He’s, interestingly, going to join with his wife to, among other things, invest in programs that combat the things they worry about Fox causing. They are going to invest in programs to fight illiberalism around the world, boost centrist political organizations, invest in voting and things that are really kind of counter-programming to the ideology that the empire he’s leaving behind pumps out regularly.

[music]

jonathan mahler

So it’s no longer a succession drama. Succession has finally been resolved. But it’s still a family drama, because James is now going off on his own with every intention of investing in big initiatives to effectively undermine the political agenda of the Murdoch empire.

michael barbaro

Wow. And so, essentially, the war over this business will take a new form.

jonathan mahler

Exactly. James will be on the outside. Lachlan will be on the inside. But the war will continue.

[music]

michael barbaro

Jonathan, Jim, thank you very much. Appreciate it.

jonathan mahler

Thank you, Michael.

jim rutenberg

Thanks, Michael.

[music]

michael barbaro

Here’s what else you need to know today.

archived recording

The crew performed all the procedures repeatedly provided by the manufacturer.

michael barbaro

Investigators have found that the pilots of a Boeing 737 Max 8 that crashed in Ethiopia followed the emergency safety procedures recommended by Boeing, suggesting that pilot error was not a factor in the jet’s crash. The investigation has concluded that, moments after takeoff, one of the jet’s sensors began fluctuating wildly, erroneously indicating that the jet was about to stall, triggering an automated system that pushed down its nose, a situation that doomed the same Boeing model in Indonesia six months ago. The pilots in Ethiopia then did what Boeing recommends, cutting off electricity to the automated system. But the nose kept pushing down, and the jet quickly crashed, killing everyone onboard.

archived recording

It is recommended that the aircraft flight control system related to the flight controllability shall be reviewed by the manufacturer.

michael barbaro

And, in a major reversal, the Mormon Church said that it would no longer treat same-sex couples as unworthy of the faith and would end a ban on baptizing the children of same-sex couples. The decision rolls back a 2015 rule that has ripped apart Mormon congregations and driven away many church members. The Times reports that the change in policy is an attempt to bring those members back and bring the Mormon Church in line with mainstream American views.

The Daily is produced by Theo Balcomb, Lynsea Garrison, Rachel Quester, Annie Brown, Andy Mills, Clare Toeniskoetter, Michael Simon Johnson, Jessica Cheung, Alexandra Leigh Young and Jonathan Wolfe, and edited by Paige Cowett, Larissa Anderson and Wendy Dorr. Lisa Tobin is our executive producer. Samantha Henig is our editorial director. Our technical manager is Brad Fisher. Our engineer is Chris Wood. And our theme music is by Jim Brunberg and Ben Landsverk of Wonderly. Special thanks to Sam Dolnick, Mikayla Bouchard, Stella Tan and Susan Beachy.

That’s it for The Daily. I’m Michael Barbaro. See you on Monday.

Listen and subscribe to our podcast from your mobile device:
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Through his media empire, Rupert Murdoch has reshaped the politics of countries across the English-speaking world, pushing their governments to the right. We look inside the struggle over who will control that empire once he’s gone.

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On today’s episode:

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Rupert Murdoch with his sons, Lachlan, left, and James in 2016. The brothers have long feuded over the future direction of Mr. Murdoch’s media empire.Credit...Justin Tallis/Agence France-Presse — Getty Images

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The Night Fox News and Trump Became One

When Sean Hannity of Fox News appeared onstage at a rally with President Trump — and called the press corps “fake news” from the podium — it was the culmination of the network’s shift from its “fair and balanced” founding days to a post-Ailes MAGA messaging machine.

“Promises made. Promises kept.” This is the night Fox crossed the line between where the network ends and President Trump begins. And I’m going to tell you how we got here. “America, you have the power. Tomorrow, you can shock the world again.” “Hello everyone. We are out here live on Facebook at President Trump’s rally in Cape Girardeau.” This is not just any rally. It’s the night before a historic midterm election. Control of Congress, the future of Trump’s presidency, it’s all on the line. Missouri is a key battleground. And team Trump is pulling out all the stops to fire up the base. This is the birthplace, the hometown of Rush Limbaugh. There’s no more sacred ground in conservative media. “What an honor. This is so exciting! I have been watching Trump rallies” — Lo and behold, word goes out, Sean Hannity will be among the presenters. Well, that would be astonishing. Mind you, this is the top person in all of cable news — Fox News’s PR department, their phones are ringing off the hook. Sean Hannity is supposed to be like an opinion columnist. Fox allows him to take great liberty, but he still has to, at least, abide by some measure of news standards. Talent for a news organization should not be openly campaigning with a candidate. It erases any line between the news organization and the campaign. Hannity completely denies it, tweets out: “I will not be on stage campaigning with the president.” He says he’s just covering the final rally for his show. “Sean Hannity, come on up, Sean Hannity.” That one small step for Sean Hannity would be a giant step for the network that pledged to make the news “fair and balanced.” So, how did we get to this moment? It all started with an Australian media mogul who wanted to take on the world. Rupert Murdoch, from the minute he steps ashore in the United States in the ’70s, is all about upending the elitist news environment. He wants to blow up the entire media system here. “With a publishing empire in New York alone, that includes The Post, New York Magazine, Village Voice.” Murdoch’s expanding his empire in the United States just as a new right-wing radio star enters the scene. “Rush Limbaugh, talent on loan from God.” Rush Limbaugh is a national hit — he is huge. “That’s more like it!” Limbaugh is a game changer for the conservative base. But what Limbaugh doesn’t have is the gravitas of a news operation. Murdoch sees a big opportunity and he finds the perfect accomplice. “I’m here with Roger Ailes, who has been called the Ernest Hemingway of campaign advisers.” Roger Ailes was in the Nixon White House. He knows Watergate happens because The Washington Post, this beacon of credibility, this mainstream news organization, takes down a president. Ailes and Murdoch want that kind of power. They start in 1996. The two men make their pitch to the base. “So, what will our Fox News be? It will be different and it will be fair, because it has to be. Because a very large audience is begging it to be.” “On the record. Fair and balanced.” There was a brilliance to it. We are fair and balanced because the others aren’t. This makes us different. It’s a bullhorn, not a dog whistle, to those people who have felt left out by the news conversation. This is for me. For a long time, they’re struggling to get any notice. And then, they get a gift: the Monica Lewinsky scandal. It’s a salacious story tailor-made for Fox. “Get ready with your clicker to turn your volume up.” It gripped the base and starts to solidify their audience. “The president’s on trial. Our team will keep you informed.” And everything flows from there. “On the ground in Lower Manhattan.” “Strike happened shortly after dark.” They established their news division. “Are American policies too strict or not strict enough?” And that news division gave heft to their commentariat. — “Since the April deadly shooting” “They’re gonna go after the guns.” “Yes.” Ailes also newsified his commentators. “Those who want reparations for slavery are misguided.” “Should people who illegally sneak into this country be given a free ride?” Sean Hannity, he’s not just in a studio in a Lacoste shirt talking to a microphone. It’s a news desk. It has flashing headlines. It’s got all the accoutrements of news. “We can get you to jump in and listen to Hillary.” For many years, it was fair and balanced. “So, let me go back to the single mother issue here.” Hannity would square off against a liberal named Alan Colmes. “They hate the nuclear family.” “Liberals hate the nuclear family?” “Let him, let her finish her point.” “Yeah, would you stop interrupting? I’m trying to make a point here.” “I lost my head.” But let’s face it, he got his butt kicked on almost every debate. It was fair and balanced on the surface. But there was a lot more at play underneath it that tilted the scales to the right. It’s the secret of their success. “This is a Fox News alert.” We’re a news organization like anybody else. And we’re going to tell you those other news organizations are wrong. They’re lying to you. “These people are not journalists. These are not news channels. What you just saw is nothing but left-wing propaganda.” “This was a retweet” — “All right, whatever it is.” “And it came from sources” — “I told you whatever it is, you shouldn’t tweet, ever!” One thing you have to do if you want to run for president as a Republican, it is believed you must visit Rupert Murdoch at the Fox headquarters in Midtown Manhattan. You have to inform him of your plans. So, Trump informs Rupert that he is running for president. And Rupert is eating soup. And as we hear this story, he doesn’t even look up from his soup. Rupert is not ready to buy into the idea of a Trump presidential run, let alone, a Trump presidency. Ailes has the same reaction. And the sentiment comes through loud and clear. Trump’s getting pounded on Fox. “Loser?” “Loser is Trump, who seems to think this campaign is about him.” “It is simply bad anti-terror policy to overreact and prohibit Muslims, even if you could, which you can’t!” “I find him offensive.” “I don’t think you’re a first-time offender making a personal crack at a woman.” “I just think that belief in Trump is misplaced.” It would drive Trump crazy. And he would call Ailes and yell and it gets to the point where Trump’s own staff has to try to keep him away from the television. And then there’s the bitter proxy war with Megyn Kelly. It begins on the national debate stage. “You’ve called women you don’t like fat pigs, dogs.” Trump is furious. “You know, you could see there was blood coming out of her eyes, blood coming out of her, wherever.” “This afternoon, Fox chief Roger Ailes demanding Trump apologize for his latest Twitter tirade against host Megyn Kelly.” What it settles into is this really interesting power struggle, because Ailes doesn’t take orders from candidates. “Before we get to the issues, let’s address the elephant not in the room tonight.” Trump doesn’t take orders from anybody. “Donald Trump has chosen not to attend this evening’s presidential debate.” They both need each other. Trump needs the Fox audience. Fox needs Trump’s ratings. So, there’s just this battle for control of effectively, really the party. “Donald Trump is the front-runner.” Thirty seven percent to Kasich’s 34.” “Trump is leading in Idaho.” “All my money on Trump.” Fox might have been hard on Trump, but it didn’t matter. The base loves him. It’s looking like Trump’s probably on his way to becoming the Republican nominee. “We rarely see black chips here at this table.” Trump isn’t a Murdoch kind of guy in terms of temperament, in terms of policy. But Murdoch and Ailes have to make a choice: Get behind Trump or risk losing their base and their ratings. “This is the great wall of Trump, I guess? I don’t know.” In March 2016, Murdoch sends a signal: He’s ready to get behind Trump. He tweets out the Republican Party would be quote, mad not to unify. Over the course of several weeks, you see the different parts of the Murdoch empire get behind Trump. “So, big news today is Donald Trump has agreed to sit down with yours truly.” The big moment comes when Megyn Kelly goes to Trump Tower to make peace. Trump visits Ailes for lunch at the Fox headquarters and that’s another breaking of the bread — the truce is complete. “Roger Ailes, the architect of the Fox News Network” — But a few months later, literally as Trump’s cinching the nomination, Ailes is ousted over sexual harassment allegations. “Rupert Murdoch, who hired Ailes” — Murdoch takes the helm. He’s back in the newsroom. He’s part of the action. It’s just a wild, fun ride. Through most of the summer, everyone, including Trump, still thinks that Clinton’s probably going to win. Rupert Murdoch and Rupert Murdoch’s sons, James and Lachlan, all believe the true future of the network is with a Megyn Kelly. Someone who can be Trump critical — “Mr. Trump is off base” — and can appeal to sort of moderate centrist, suburban Republican women and ideally, some independents. They need to grow. “Hillary Clinton has called Donald Trump to concede the race.” Trump winning starts to change this calculus dramatically. And we start to see a shift in Fox’s primetime lineup. “Donald Trump’s son” — Greta Van Susteren? Gone. “He’s right here to go on the record.” “I have decided to pursue a new challenge.” Megyn Kelly, she lands a big job at NBC. Gone. Bill O’Reilly’s also forced out over sexual harassment allegations. Suddenly, their primetime is far more pro-Trump than it ever was under Ailes. The new faces? The hard-right commentator Tucker Carlson. “Admit the world’s poor they tell us, even if it makes our own country poorer, and dirtier and more divided.” And the conservative radio star Laura Ingraham. “A conservative Republican like Donald Trump to remind us what it was all about, freedom.” “What the mainstream media will never tell you.” Anchoring it all is Sean Hannity. Ailes used to tell me that Hannity’s show was segmented, that its appeal was limited to a shrinking hardcore base. But it turned out this wrong. “That I would be the bridge between two generations of the Fox News channel. This is the next generation.” Trump is ratings gold. His rise to power turned Hannity into Fox’s biggest star. And the affection was mutual. “One of the reasons I’m supporting Donald Trump this year is number one, he’s going to” — Weeks after Ailes was forced out, Hannity actually appeared in a video for the Trump campaign. There was a stern reprimand from Fox, but it was an early sign that times were changing. With a freewheeling Murdoch now running the show and Trump in the White House, “fair and balanced” gets lost in the ratings chase. The network actually drops the slogan eventually — there’s virtually no limit on how far Hannity can go. “As I have been warning, Mueller is out to get the President, and it appears at any cost. Here’s what happened.” Fox and Trump are now both vying for the base’s affection, but the base overwhelmingly only wants Trump and Trump cheerleading. “We’ve been talking about for about a week now, blanketed in red, white and blue” — The feedback loop is just amazing. It becomes an echo chamber. If you ever see daylight between them, it’s because one of them isn’t properly giving the base what it wants to see. “Do not fall for it, Mr. President.” “We’re already on the right track, Mr. President.” “Mr. President, I understand the pressure that you are under from every side. But the wall at our southern border is a promise that you made, ran on, got elected on and must keep.” “From Cape Girardeau, Mo., it is our election eve edition.” Which brings us back to the rally in Missouri, on the eve of the midterms. Remember, Hannity claimed he would just be covering the rally for his show. “Let me describe the scene here if I can for everybody. They’re, like, firing out hats and T-shirts. I mean, this is, literally, like a rock concert.” To Fox News it should be a political event. It’s not a rock concert. “There never has been anybody like him. I was speaking to Sean Hannity backstage. Do we love Sean, by the way?” But the problem is, Sean Hannity is in the band and he’s about to go up there and play lead guitar. Here we go — being on stage is just a whole other level of involvement. It’s breaking down that last little bit of independence that Fox says it expects from even its opinion hosts. “By the way, all those people in the back are fake news.” It has always been part of Fox’s m.o. to attack the rest of the media as biased. But doing it from a stage with the press in the building, including his own Fox colleagues — he’s pointing at them, among others, saying “fake news.” That was a big deal. This moment is a joint play to the base. Now, they’re the real leader of the party. “So, anyway. You’re right. U.S.A.” After much uproar, Fox says they don’t condone anyone taking the stage. So, they don’t name the people who took the stage and that’s all. The tepid response is a reflection of where Fox stands right now. It still has real news and real journalists. So, they need to signal they’re not officially approving what Hannity did, but they will only go so far. The opinion hosts are still the ones plugging into the Trump base, drawing the ratings and leading the attack against the so-called fake news. “By the way their ratings dropped through the floor last night” — With a new Murdoch taking the reins at Fox News, there’s speculation this dynamic might change. But today, Trump and the network are as friendly as ever. “And our friends, Tucker, Sean, Laura — through the roof last night.” With 2020 coming into view, and both Trump and Fox working to feed the base, how much closer can they get?

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When Sean Hannity of Fox News appeared onstage at a rally with President Trump — and called the press corps “fake news” from the podium — it was the culmination of the network’s shift from its “fair and balanced” founding days to a post-Ailes MAGA messaging machine.

Tune in, and tell us what you think. Email us at [email protected]. Follow Michael Barbaro on Twitter: @mikiebarb. And if you’re interested in advertising with “The Daily,” write to us at [email protected].

Jonathan Mahler and Jim Rutenberg contributed reporting.

“The Battle to Control the Murdoch Media Empire” was produced by Clare Toeniskoetter, with help from Jessica Cheung, Alexandra Leigh Young and Michael Simon Johnson, and edited by Wendy Dorr, Lisa Chow and Lisa Tobin.

“The Daily” is produced by Theo Balcomb, Annie Brown, Jessica Cheung, Lynsea Garrison, Michael Simon Johnson, Andy Mills, Neena Pathak, Rachel Quester, Clare Toeniskoetter, Jonathan Wolfe and Alexandra Leigh Young, and edited by Larissa Anderson, Paige Cowett and Wendy Dorr. Lisa Tobin is our executive producer. Samantha Henig is our editorial director. Brad Fisher is our technical manager. Chris Wood is our sound engineer. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

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