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Wednesday, March 27, 2024

Bob Iger and Ron DeSantis settle their beef, Shane Smith reportedly wants to buy Vice Media back, the FTC probes TikTok, Matt Schlapp settles a sexual assault lawsuit, Beyoncé releases her album's track list, Martin Scorsese joins forces with Fox Nation, and so much more. But first, the A1.

THE A1

Comcast's NBC Crisis

CNN Photo Illustration/Beata Zawrzel/NurPhoto/Getty Images

What is Brian Roberts going to do?

The Comcast boss is watching an unceasing five-alarm fire rage at 30 Rock, scarring the reputation of NBC News and threatening to consume multiple parts of the Cesar Conde-run NBC Universal News Group.

It's difficult to succinctly summarize the disastrous state of affairs at the news division, given that multiple engines are failing simultaneously. But one thing is clear: Conde has lost control of his organization, prompting industry insiders to wonder how he continues to remain in his role as chairman of the NBC News Group. In the words of one veteran media executive I spoke to Wednesday, "It's inconceivable that he should."

Instead of extinguishing the inferno that broke out on Friday with the hiring of former Republican National committee chair Ronna McDaniel, sparking an unprecedented on-air mutiny over her role in working to subvert the 2020 vote, the actions of Conde and the NBC executives he has empowered have only hosed gasoline on it.

While it was immediately obvious that the announcement was not going over well with the network's staff, Conde froze still, digging his heels in the (Miami?) sand and refusing to dump McDaniel until after his top television personalities, including Chuck Todd and Rachel Maddow, went on the air and excoriated the hire. By the time Conde moved to sever ties with McDaniel on Tuesday evening, however, the crisis had spiraled far out of control and given way to even larger problems for the network boss.

The eventual decision to cut McDaniel earned him public praise from MSNBC hosts, but not before the 80-hour saga severely tarnished the reputations of Conde's top executives and touched off an all-out civil war inside the news group which has sent the organization into a tailspin.

Those details are starting to leak flood out of 30 Rock and into public view. On Wednesday evening, Puck's Dylan Byers offered an inside look into the chaos that has broken out — and it's quite an ugly sight to behold.

Byers reported that Carrie Budoff Brown, NBC News' senior vice president of politics, had recruited Republican Richard Walters to "advance conservative pushback on social media against Todd." Brown confirmed to Byers that she "had a conversation with Richard Walters and asked if [McDaniel] had supporters who could speak on behalf of her being an NBC News contributor," but insisted that she "never discussed what to say, how to say it, or who to focus on." Regardless, staffers inside NBC News are enraged at the fact an executive would have engaged in such behavior.

Inside Conde's inner circle, Stephen Labaton, executive vice president of communications, is also facing an accusation of professional misconduct. Amid the crisis, Labaton bashed his colleagues over at MSNBC, rebuking the hosts in a profane manner, Byers reported, citing a source. Labaton denied making the remark and suggested a disgruntled McDaniel had leaked it after being fired.

Over at MSNBC, Rashida Jones, the network chief, did not escape unscathed. Byers reported that not only did Jones initially not object to McDaniel's hiring, but that she expressed interest in having the election denier on the progressive cable network.

And, outside of Byers' report, I am told that staffers are not pleased with Rebecca Blumenstein, the NBC News president of editorial. During the network's daily editorial meetings this week, Blumenstein has managed to remain almost entirely silent on the McDaniel mess, drawing consternation and dismay from staffers. That could, however, change on Thursday. Blumenstein, I'm told, will travel to Washington to meet with staffers.

Meanwhile, as the top executives at NBCU News Group are ensnared in their own controversies, the company is under tremendous attack from right-wing figures, which are aiming to mar the reputation of NBC News.

"NBC just hired & immediately fired Ronna McDaniel, because the team refused to let even one Republican join them – that's how biased they are!" Elon Musk posted on his social platform X Wednesday.

Of course, the reality is that the journalists rejected McDaniel because she participated in Donald Trump's attempt to throw out votes in 2020 and in the years since publicly stated she did not believe Biden legitimately won the election. Nevertheless, the dishonest narrative is what outlets like Fox News are feeding their audiences — and that coverage has significant consequences for NBC News. Ironically, NBC News' attempt to make inroads with Republicans through the hiring of McDaniel has had the opposite effect.

By the time the right-wing media machine is through with NBC News, it will likely be one of the least trusted news organizations on the right. Instead of taking a few steps forward, the outlet has been sent a dozen steps back. The right is still animated by the Tom Cotton op-ed controversy that roiled The New York Times in 2020. That drama now appears relatively minor when compared to the seismic event that McDaniel's ouster has wrought.

And it is likely not over. Staffers inside the company are wondering amongst themselves who is going to be held accountable for the mess? Will any executives lose their jobs over the corporate catastrophe? That conversation is playing out as McDaniel hunts for an attorney as she prepares for a possible legal fight with NBC News over its decision to pull the plug on her contract and, potentially, the embarrassment the entire episode has caused.

The right-wing fury has also reached the door of Roberts. On Wednesday, Trump spent part of the day ranting on Truth Social against the Comcast boss over the McDaniel disaster, characterizing Roberts as a weak leader whose employees are running amok.

"The sick degenerates over at MSDNC are really running NBC, and there seems nothing Chairman Brian Roberts can do about it," Trump wrote on Truth Social. He later added: "MSNDC fake anchors have taken over NBC from Chairman Brian Roberts, and he doesn't know what to do!"

It's not the first time that Roberts has bore the brunt of Trump's ire. In November, Trump wrote that the government "should come down hard" on Comcast and "make them pay" for the editorial positions of MSNBC. Given that Roberts and the executives who run the media conglomerate hold a significant distaste for drama, it's difficult to imagine that he is thrilled to once again find himself in the former president's crosshairs — and all because of Conde's self-inflicted wounds.

Put another way: The fire in the NBCU News Group house has spread to the Comcast neighborhood – and that can't bode well for Conde, who I'm told had been remote-working during the crisis. (I asked Conde's spokesperson on Wednesday whether the network boss had returned to 30 Rock to manage the situation in-person, but did not hear back.)

While Conde struggles to quell the internal fighting, it is unclear what precisely Roberts and Comcast president Michael Cavanagh are doing — or will do — to help put out the flames. I asked Comcast spokespeople on Wednesday if either Roberts or Cavanagh were taking any action. Do they have confidence in Conde's ability to lead, given that his portfolio has been thrown into absolute disarray?

Comcast declined to comment. Suffice to say, that silence is rather deafening.

THE MCDANIEL MESS

Norman Ornstein on X: The Ronna McDaniel debacle "makes it clear" NBC needs "a major house leaning starting at the very top."
Kim Masters: "For Conde, who is believed to be angling to rise to the CEO job at NBCUniversal in the fullness of time, it's fair to question whether this deeply embarrassing episode will have major consequences." (THR)
Chris Wallace: "I thought it was pretty dumb, frankly, that the executives at NBC News thought they were going to get away with it."
McDaniel "is exploring potential defamation and hostile work environment torts after MSNBC's top talent — momentarily her colleagues — took turns Monday blasting her on air," Rachel Bade reports. (POLITICO)
Brian Stelter reveals that he has been working on a profile of Conde for Fast Company magazine. He writes the McDaniel blowup was "inevitable" and suggests management wasn't in touch with the staff. (Fast Company)
Michael Grynbaum and John Koblin note that NBC News staffers "have questioned the byzantine leadership structure" put into place by Conde. (NYT)
"Veterans of the network were shocked that top talent had apparently not been consulted in advance" of McDaniel's hiring, Max Tani reports. (Semafor)
Michael Luciano notes that the Fox News personalities attacking and mocking NBC staffers are "woefully lacking in self-awareness." (Mediaite)

THE INDUSTRY

THE FOURTH ESTATE

Shane Smith is "trying to buy" Vice Media back, Sharon Waxman and Emily Smith report. One source told the duo that Smith "has been telling anyone who will listen for the last 18 months that he is buying Vice Media back." (The Wrap)
Charlotte Klein on POLITICO: "The challenge Politico faces today is one of identity, amid stepped-up competition in Washington and shifting editorial priorities. In its fifth election cycle, Politico is battling onetime colleagues turned rivals for scoops on its traditional turf while trying to fulfill a more global mandate." (Vanity Fair)
Evan Gershkovich's parents spoke to Andrea Mitchell as The WSJ reporter nears one-year behind bars in Russia. (NBC News)
Reporters Carolyn Cole and Molly Hennessy-Fiske, who were attacked by Minnesota State Patrol while covering George Floyd protests will settle a lawsuit with the state for $1.2 million. (LAT)
BBC boss Tim Davie said that 14 years of "shortsighted" budget cuts from Conservative governments risk undermining the broadcaster's future — as its budget is further reduced. (The Guardian)

IN THE MARKET

S&P downgraded Paramount Global's debt to junk status. (Variety)
Egan-Jones has become the second independent firm to back Nelson Peltz in his Disney proxy war. (Deadline)
Alex Weprin: "Most significantly for [Bob] Iger, his reputation for making the right call at the right time has been punctured in Disney's ever-evolving succession process." (THR)
The U.S. music industry produced $17.1 billion in 2023, an 8% increase year on year, the eighth consecutive on-year increase for the market. (MBW)

MEDIA MOVES

The NYT named James Shield executive producer for "The Headlines." (NYT)
NPR named Bobby Carter the host and series producer for its Tiny Desk series and Jack Corbett the visual host of the "Planet Money" TikTok account. (NPR/NPR)
The Information hired Anita Ramaswamy as a financial analysis writer and hired Yueqi Yang as a crypto reporter. (TBN/TBN)
Barron's hired Laura Sanicola as an energy beat writer spearheading a new newsletter. (Editor and Publisher)
Bloomberg News hired Tara Mulholland as an audience editor. (TBN)
Fox Entertainment promoted Fernando Szew to head of Fox Entertainment Studios, Michael Thorn to president of Fox Television Network while also expanding Allison Wallach's role to overseeing global unscripted programming for Fox Entertainment Studios. (The Wrap)

THE INFO WARS

CNN Photo Illustration/Joe Burbank/Orlando Sentinel/TNS/Getty Images

Mickey's Peace Pact: The fight between Bob Iger and Ron DeSantis is over, for now. The DeSantis appointed Central Florida Tourism Oversight District board on Wednesday agreed to a settlement with Disney, putting the Magic Kingdom's lawsuit against the Sunshine State to bed and averting a scheduled June trial. The two sides, which had once bitterly battled each other in a fight that became a centerpiece of the culture wars, each put out statements saying that they are ready to put the legal war behind them and move forward. CNN's Elisabeth Buchwald and Samantha Delouya have more here.

🔎 Zooming in: It's hard to view the outcome as anything but a victory for DeSantis, who was able to retaliate against Disney for speaking out against the "Don't Say Gay" bill and strip the company of the special status that for decades allowed it to manage its Walt Disney World property. "It seems like the white flag of surrender has been raised over Cinderella's castle," University of Central Florida political science professor Aubrey Jewett told The WaPo's Lori Rozsa and Aaron Gregg. More from the duo here.

IN THE BATTLEFIELD

Right-wing media personality and CPAC boss Matt Schlapp settled a sexual assault lawsuit with Carlton Huffman for $480,000, Jamie Gangel and Gregory Krieg report. (CNN)
Marc Thiessen took a brutal jab at Tucker Carlson. (Mediaite)
Former CBS News and Fox News correspondent Catherine Herridge is in talks to join Elon Musk's X, Alexandra Steigrad reports. (NY Post)
Right-wing personalities shared "nut job conspiracy theories" about the Francis Scott Key Bridge collapse, Jamie Frevele reports. (Mediaite)
David Gilbert: "A non-exhaustive list of things that are getting blamed for the bridge collapse on Telegram and X include President Biden, Hamas, ISIS, P. Diddy, Nickelodeon, India, former President Barack Obama, Islam, aliens, Sri Lanka, the World Economic Forum, the United Nations, Wokeness, Ukraine, foreign aid, the CIA, Jewish people, Israel, Russia, China, Iran, Covid vaccines, DEI, immigrants, Black people, and lockdowns." (WIRED)
Kate Middleton's video statement in which she shares that she's been diagnosed with cancer has sparked a new bout of A.I. conspiracies, Tatum Hunter reports. (WaPo)

THE VALLEY

CNN Photo Illustration/Mike Blake/Reuters

TikTok's Troubles Deepen: The hits keep on coming for TikTok. The Federal Trade Commission is now investigating the short-form video company, owned by Chinese firm ByteDance, over its data and security practices, CNN's Brian Fung first reported. People familiar with the matter told Fung that the FTC "is investigating whether TikTok violated a portion of the FTC Act that prohibits 'unfair or deceptive' business practices," when they denied its data on millions of Americans could be accessed in China. The feds are also looking at whether the company violated the Children's Online Privacy Protection rule, which requires companies to notify parents and obtain consent before collecting data from children under age 13. Needless to say, the probe is just the latest complication for TikTok as it faces the threat of a potential U.S. ban or forced divestment from China. Fung has more here.

TOO MANY TABS

TikTok has launched a $2.1 million television ad campaign as its fate is decided by the U.S. Senate, Brian Schwartz reports. (CNBC)
"The TikTok bill isn't just about TikTok," Will Oremus writes. (WaPo)
Reddit shares took an 11% fall on Wednesday, the biggest dip the social media company has seen since going public last week. (Bloomberg)
Apple has turned to Phil Schiller, its former chief marketing officer and Steve Jobs' longtime protégé, to defend its so-called walled garden, Aaron Tilley and Kim Mackrael report. (WSJ)
Elon Musk announced that later this week all premium X subscribers will have access to Grok. (The Hill)
Amazon lost its legal bid to delay complying with a section of the E.U.'s Digital Services Act that mandates it make its online ad library publicly available. (POLITICO)
Amazon invested $2.75 billion in A.I. firm Anthropic. (THR)
LinkedIn is trying out a new TikTok-esque video feed. (TechCrunch)

CURTAIN CALL

CNN Photo Illustration/Jenny Kane/AP

Disney Doubles Down: Disney+ just got a whole lot bigger. The streaming service powered by the Magic Kingdom has officially added Hulu to its flagship app, giving its millions of subscribers the ability to watch both services under one roof. The move, a major undertaking by Disney, comes after Bob Iger recently admitted the media giant was playing catch up to Netflix in technical ability, calling it the "gold standard." To highlight the major upgrade to users, the Disney+ app icon has been changed from its usual blue color to a teal, integrating Hulu's green. "This launch really represents the most extensive technical advancement to Disney+ and our entire streaming platform since we launched Disney+ over four years ago," Aaron LaBerge, president and chief technology officer for Disney Entertainment & ESPN told THR's Alex Weprin. That same tech, LaBerge said, will also be used to launch ESPN's forthcoming standalone streaming service. Weprin has more here.

OFF STAGE

Beyoncé released the tracklist for her upcoming album, "Cowboy Carter." (Pitchfork)
Martin Scorsese will host, narrate, and executive produce "Martin Scorsese Presents: The Saints," a docuseries about Christian saints, for Fox Nation. (NYT)
The Praise Must Flow: Steven Spielberg applauded Denis Villeneuve's "Dune: Part Two," calling it "one of the most brilliant science fiction films." (Deadline)
Bill Maher is launching The Club Random Studios network, a podcast network, and hired former ESPN anchor Sage Steele as a host. (THR)
Austin Butler will star in Darren Aronofsky's crime thriller "Caught Stealing" for Sony Pictures. (Deadline)
Amazon MGM Studio's green-lighted "A Simple Favor 2," with Anna Kendrick and Blake Lively. (THR)
Katy O'Brian joined the cast of "Mission: Impossible 8." (The Wrap)
Netflix lost its attempt to throw out Rachel DeLoache Williams' defamation lawsuit over Shonda Rhimes' "Inventing Anna." (Variety)
Former Nickelodeon and Disney stars are connecting with Gen Z and millennial fans via podcasts, Rebecca Carballo reports. (NYT)
Adam B. Vary details the ambition of "Star Trek" as the 58-year-old franchise looks to win over future generations of fans. (Variety)

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. You can follow us on Instagram, Threads, and LinkedIn. We will see you back in your inbox tomorrow.

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