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Monday, April 24, 2023

We're burning the midnight oil! Needless to say, it has been a wild 48 hours in media, with multiple consequential stories breaking one after another. And a lot of questions still remain. Here's the latest information we have at the moment on each of the giant stories reverberating in the industry.

THE A1

The Cancellation of Carlson

CNN Photo Illustration/Seth Wenig/AP

Why?

That is the question I have been asked — and expect to continue to be asked — more than any other after the seismic news that Fox News had fired its highest-rated host, Tucker Carlson. The news, which rocked both the media and political worlds, begs for an answer to that fundamental question.

But answering it is anything but easy. In the hours following Carlson's abrupt dismissal from the right-wing channel, a number of explanations have emerged — all with plausibility. It goes without saying that it was no coincidence that the dismissal came just days after Fox's historic settlement with Dominion Voting Systems. But what specifically about that case prompted Carlson's undoing remains murky.

Perhaps it was related to ex-producer Abby Grossberg's lawsuit against the network, which alleged rampant sexism and anti-Semitic behavior behind the scenes at Carlson's show? Or perhaps it was profanity-laced remarks, some of which were redacted in the Dominion discovery documents, that Carlson privately made, disparaging his colleagues, including Fox brass? Or perhaps Rupert Murdoch, and his chief executive son Lachlan, wanted to send a message about who is ultimately in command at the company after having been embarrassed for months with the public airing of Fox's dirty laundry?

It's possible it was all of the above, given that each of the issues are intertwined. For its part, Fox News did not offer an explanation for Carlson's ouster in the short statement the network put out announcing the bombshell decision. "We thank him for his service to the network as a host and prior to that as a contributor," Fox News said. Carlson also offered no comment on Monday, ignoring my many texts and phone calls seeking information.

Which leaves us in a frustrating position. We know the basic contours of how the decision was made (Lachlan Murdoch and Suzanne Scott came to agreement Friday evening about canceling Carlson's show and informed him on Monday morning, just before publicly announcing the news). But we are unable to say definitively, for now, what led to the firing of one of the most powerful figures in modern American media and politics.

One veteran television news executive told me that they believed the decision came down to a straightforward calculation by the Murdochs: Risk versus reward. "There's a lot of drama and intrigue, but this is always about managing risk vs reward," the person said.

"I know that's not very exciting, but it's how these decisions get made at the highest level," the executive added. "A weighing of the negatives - and risks to the business - versus the positives or benefits."

And if you're the Murdochs, it is easy to say how holding on to Carlson comes with more much more risk than reward. Carlson is not a team player, and in fact is uncontrollable. He carries legal baggage, and the Murdochs are trying to put an end to the legal disputes they find themselves in. He regularly births negative news cycles about the network that tarnish the brand, and Fox News is desperate to emerge from the cloud of negative press it has been the subject of. Meanwhile, mainstream advertisers have stayed far away from Carlson's show, which is far too toxic to associate with.

The Murdochs also have plenty of evidence to support the bet that Fox News is bigger than any single person. Just look at Glenn Beck, Bill O'Reilly, Megyn Kelly, and others who have exited the network. None of them have bigger platforms today than they did when they were on Fox News. They all have a less powerful megaphone than the one they carried when employed by the Murdochs.

Meanwhile, the network itself has endured. It is pretty much enshrined as a law of physics in the universe of right-wing media that whoever the Murdochs put in prime time will rate. In some cases, certain shows have out-rated their predecessors. Beck was replaced by the higher rated "The Five," for instance.

All that said, Carlson will test the hypothesis that Fox News as a brand trumps any single personality. Carlson is a force unlike any other in right-wing media and politics. He commands a loyal audience that is really not akin to anything else in the space. If he were to turn up on another channel, it's certainly possible that a not-so-insignificant chunk of his audience would follow him over — especially with former President Donald Trump eager to rip the Murdochs and fan chaos in right-wing media.

Which is all to say that, while the Murdochs may have made a calculated bet that the odds will remain in their favor, it is still a bet. And it's not clear exactly how things will shake out when the dice land.

THE FOX HOLE

Brian Kilmeade briefly referenced Carlson's firing at the beginning of the 8pm hour, which he guest hosted on Monday: "As you probably have heard, Fox News and Tucker Carlson have agreed to part ways. I wish Tucker the best. I am great friends with Tucker and always will be." (Deadline)
Trump told Newsmax's Greg Kelly that he was "shocked" by the news Carlson had been fired: "I'm surprised. He's a very good person and a very good man, and very talented as you know." (Mediaite)
Sean Hannity addressed Carlson's firing on his radio show saying he was not read in on the matter: "I guess people think that because I've been there the longest that I'd have some knowledge or understanding of what's going on, but… I just don't. For those who think I should, I say to those people: 'I don't own the company.'" (Variety)
But inside Fox News, some of Carlson's internal critics rejoiced upon learning the news, people inside the network told me. There's "a lot of relief generally, surprise they had the nerve to do it, and hope for a culture change," one employee explained. (CNN)
Rachel Maddow opened her program with a 26-minute deep dive into right-wing media and its future: Carlson "is one of a string of them. There will be someone after him. The important question ... is about the success of that business, the success of that industry."
How Murdoch's paper covered the news: Joe Flint, Isabella Simonetti, and Keach Haegy emphasized the disparaging remarks Carlson made about his colleagues in their story. The trio reported that Carlson earns about $20 million a year and is expected to be paid out for the remainder of his contract. He was renewed in 2021. (WSJ)
Gabriel Sherman reported that Carlson "was in the midst of negotiating the renewal" of his deal "through 2029." Per Sherman, Carlson had told people as of last week he expected to be renewed. (Vanity Fair)
It's not just Carlson leaving. His executive producer, Justin Wells, is also exiting Fox News, Jeremy Barr and Sarah Ellison report. (WaPo)
Jonathan Swan and Maggie Haberman reported that people inside Trump's orbit were floored by the news. (NYT)
Justin Baragona, Corbin Bolies, and Diana Falzone meanwhile reported on how Newsmax "looks to copy Fox News again while gloating about Tucker." (Daily Beast)
Of note: Carlson has officially managed the trifecta of having a show canceled by CNN, MSNBC, and Fox News.
Brian Stelter: "News anchors don't own their time slots, they rent. Anchors who let their egos delude them into thinking they own their time slots, well, they don't last very long." (Vanity Fair)
On that note, Stuart Thompson wondered what's next for Carlson. (NYT)

——— BELOW THE FOLD ———

CNN Photo Illustration/Angela Weiss/AFP/Getty Images

Lemon Squeezed Out: Don Lemon's 17 years at CNN came to an astonishing conclusion on Monday. "CNN and Don have parted ways," CNN chief Chris Licht said in an afternoon note to staffers, sending shockwaves both inside and outside the network. "Don will forever be a part of the CNN family, and we thank him for his contributions over the past 17 years. We wish him well and will be cheering him on in his future endeavors." Licht's note offered no explanation for Lemon's abrupt exit, but sources indicated internal research that CNN had conducted signaled the longtime anchor had alienated part of the network's audience after his sexist comments about Nikki Haley earlier this year, which he apologized for. Some guests in recent weeks had expressed reservations about appearing on-air with Lemon, the sources added. "It was an accumulation of a lot of stuff," one of the people said about the move to sever ties. I'm told that Lemon's co-hosts, Poppy Harlow and Kaitlan Collins, were informed about the decision before it was announced publicly.

In a blistering statement of his own, Lemon punched back. After having appeared on-air for "CNN This Morning" as usual, Lemon said that his agent notified him later in the morning that he had been "terminated" by the network. "I am stunned," Lemon said in his statement. "After 17 years at CNN, I would have thought that someone in management would have had the decency to tell me directly." Lemon went on to thank colleagues for "an incredible run," saying he wished his former coworkers "all the best." In a follow-up statement, CNN disputed Lemon's version of events, saying he "was offered an opportunity to meet with management." A person close to Lemon said no specific reason had been given to the star anchor for the decision to cut him from the anchor roster. Sources in both camps indicated that Lemon, who just signed a new deal when he was named co-host of "CNN This Morning," is expected to have his contract paid out.

🔎 Zooming in: Lemon's departure presents Licht another programming conundrum. Licht, whose primetime programming bloc still remains under construction, will now need to reconfigure "CNN This Morning," which just launched six months ago. Collins has been one of the anchors who has recently hosted CNN's 9pm hour, raising speculation that she could be tapped for the prime time slot. If that were the case, it would leave Licht an opportunity to nearly entirely reset the morning show.

THE SIDEBAR

"I'm told that both Tucker Carlson AND Don Lemon have retained the famously aggressive entertainment lawyer Bryan Freedman," Brian Stelter reported. (Twitter)
"In a matter of minutes on Monday, the face of cable news changed dramatically," Judy Berman wrote. (TIME)
Sara Fischer said that the media industry is "in chaos" after all of the shocking firings. (Axios)
Tom Jones argued that it may have been "the wildest day in cable news history." (Poynter)
"Regardless of their differences, the media's dramatic and ongoing reaction to the news of both firings points in the same direction," Lorraine Ali wrote. "It's a signal of just how powerful TV news and anchors remain, even in a world that's supposedly all about streaming and social media." (LAT)
"People of a certain level get fired because their bosses/owners want to fire them," Lucas Shaw pointed out. "The indiscretions matter. But bad behavior gets overlooked until someone decides it's your time." (Twitter)

THE BUSINESS

CNN Photo Illustration/Eric Gaillard/Reuters

Shell Shocker: Details emerged on Monday pertaining to Jeff Shell's (also stunning) exit as the top boss at NBCU. Comcast said in an SEC filing that it had fired Shell after an allegations from a female employee of sexual harassment. That complaint was lodged by CNBC senior correspondent Hadley Gamble and it was made in the last several weeks, I'm told. An attorney for Gamble confirmed on Monday that the CNBC correspondent had made the complaint that led to Shell's termination. "The investigation into Mr. Shell arose from a complaint by my client of sexual harassment and sex discrimination," attorney Suzanne McKie said. "Given these circumstances it is very disappointing that my client's name has been released and her privacy violated." CNN's Elizabeth Stuart and I have more here.

🔎 Zooming in: The complaint filed by Gamble, sources told CNN, came after a contract dispute she had with the company. It's not clear whether Gamble, who appeared on CNBC as recently as last week, is still employed by NBCU. Her attorney and a rep for Comcast declined to say on Monday when asked.

🔮 Into the future: In the interim, Comcast President Michale Cavanaugh will oversee Shell's portfolio. And I'm told that it should not be expected in the near future that a search for a Shell successor will be underway. In fact, Cavanaugh could oversee NBCU for some time.

Cracks in the House of Mouse: The Magic Kingdom doesn't feel so magical these days. Disney said Monday that it has resumed the painful process of laying off several thousand workers. It is the second and largest wave yet of cuts at the media giant as part of its previously announced plan to slash its workforce by 7,000 employees. The latest round of cuts is impacting ESPN, Disney's entertainment division, Disney Parks, and its Experiences and Product division. It's part of a broader workforce reduction plan announced in February by chief executive Bob Iger in an aim to save $5.5 billion in costs. The new round of layoffs will bring the total number of jobs slashed across the company to 4,000, it said, with a third and final round of layoffs expected before summer. CNN's Jon Passantino has more here.

🔎 Zooming in: No one is safe in the layoffs — including senior execs. Russell Wolff, who oversaw ESPN+, was impacted, The WSJ reported. And longtime ESPN spokesperson Mike Solty's was also cut.

IN THE INDUSTRY

CBS News is launching a weekday panel program called "America Decides" that will feature its D.C. correspondents. (Variety)
German publishing giant Axel Springer has filed a criminal complaint against former Bild editor Julian Reichelt. (FT)

THE VALLEY

CNN Photo Illustration/Matt Rourke/AP

Blue Checked Out: Elon Musk's attempts to salvage the disaster he created after stripping public figures of their legacy verification checkmarks has failed spectacularly. The erratic billionaire appended checkmarks to some celebrities over the weekend, in an apparent move to clean up his mess after realizing most people simply wouldn't fork over $8 a month for a blue badge. But several of these public figures have rejected the reapplication of the checks to their accounts, given that Musk has transformed the once-coveted symbol into one that is toxic. CNN's Brian Fung has details here.

🔎 Is it legal? While a variety of voices on Twitter are suggesting Musk's mandatory verification claims run afoul of the law, the situation appears more complicated. The Verge's Adi Robertson writes: "So let's not lose sight of the real news: over the course of a single weekend, Twitter managed to turn its most coveted status symbol into something that (at least some) users are so upset to be associated with that they're wondering if it's illegal."

TOO MANY TABS

Situational awareness: Meta, Microsoft, and Amazon are reporting earnings later this week.
"A federal appeals court largely sided with Apple on Monday in a closely watched case about its app store policies, a decision that could complicate future efforts to regulate app store operators and frustrate claims that Apple behaves monopolistically," Brian Fung reports. (CNN)
"When the U.S. Supreme Court decides in the coming months whether to weaken a powerful shield protecting internet companies, the ruling also could have implications for rapidly developing technologies like artificial intelligence chatbot ChatGPT," Andrew Goudsward writes. (Reuters)
YouTube TV says that it is planning to test increasing resolution to 1080p for its users. (TechCrunch)

CURTAIN CALL

OFF STAGE

"I'm totally fine": Taylor Swift says she is OK after photos showed she had cut her hand at a weekend concert. (Variety)
IMAX has signed theater deals in Thailand and Vietnam. (THR)
RIP: Veteran TV publicity exec Robert Crutchfield has died at 85. (THR)
Apple TV+ is not renewing "Truth Be Told" for a fourth season. (Deadline)
HBO Max released the trailer for season three of "The Other Two." (Collider)
George Lopez will no longer star in the Disney+ film "Alexander And The Terrible, Horrible, No Good, Very Bad Day." (Deadline)

Thank you for reading! This newsletter was edited by Jon Passantino and produced with the assistance of Liam Reilly. Have feedback? Send us an email here. We will see you back in your inbox tomorrow.