Global business news twenty four hours a day. It's Bloomberg dot Com the radio plus mobile LAFT and on your radio. This is a Bloomberg business flag Boom Bloomberg World Headquarters. I'm Charlie Pellet. A mix of corporate earnings reports. We're seeing shares of GE and Honeywell trading lower today. Ge down one eight percent, Honeywell down two and a half percent. Stocks are advancing toward records SMP five hundred index of seventy two, a gain there of seven points, up three
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four percent. I'm Charlie Pellott. That's the Bloomberg Business flash you're listening to. Taking stuff with Kathleen Hayes and Pim Fox on Bloomberg Radio. Twenty one century Fox is the parent company of of Fox News and Rupert Murdoch, the eighty five year old media mogul who started Fox News, stunned employees at Fox News Midtown Manhattan headquarters by announcing that Roger Ales, the twenty year tenured head of Fox News and Fox Business News, was out as the chairman
and chief executive. Mr Murdoch himself taking over Fox News in the interim here to tell us more about the news business and the challenges facing modern media, is Porter bib of Media Tech Capital Partners. Porter, thank you very much for being with us. First of all, your reaction and your thoughts about the departure of Roger Ales. Well, this was a shock that had happened so quick day,
but Roger was in. He has another eighteen months to go on his latest contract with twenty one century Fox, and at seventies six uh, Roger has told me and other people he deals with that he's pretty much ready to retire anyway. So I think that the big shock was the fact that Gretchen Carlson's litigation against Roger personally accelerated things to a fairly will, and no one including me expected this to happen as quickly as it has. Well, it really just took fifteen days. It all began one
on July the sixth. Gretchen Carlson, the former Fox anchor, followed the lawsuit accusing Roger Ales of sexual harassment, and that led to an internal investigation by twenty one century Fox. What happens next? Who can fill Roger Ayles' role? Well, James Murdoch, who essentially is the CEO of the company, even though his brother Lackland is co chairman and his father Rupert those executive chairman. They have all had some misgivings about the lack of Fox UH to begin to
prepare for the transition to digital. UH. It's still basically an old media linear television network. It's very strong, it's enormously profitable. It's having a record year this year, probably when when fiscal is finished, Fox News is going to be up about eighteen over any previous earnings year. So it's a very very important integral part of twenty first centuries uh entire profit picture and the fact that every everybody ever in the linear tell Vision network is concerned
about the erosion of audiences. Um and when you look at the rise at Fox News is enjoyed. Yes, it's significant, but it's minuscule compared to what CBS, ABC or NBC News draws on a nightly basis so wonderful part if you could speak more specifically about what the challenges are for the division of Century Fox, well, thanks to Roger Ales, uh, they have a premier position as as both a very biased political news network on on the right hand side.
But Rogers brilliant stroke of genius was calling Fox News fair and balanced. The He put CNN and MSNBC the to our genemies of Fox News on the defensive and forced MSNBC and to a certain extent, CNN uh and to be I mean left liberal, uh politically oriented news networks and the competit offering the other side of the
coin to Fox News. Fox Fox is going to continue exactly as it is, but probably with much greater uh omission of sexism of very uh good looking blond anchors and certainly Roger ales innovative leg cam is going to disappear very quickly. James Murdoch UH is known to have a very different political perspective from his father. Uh he's a lot more open minded and centrist than Rupert and certainly more than Roger Ales. So I think you're going to see not a lot of substantive change. They will
take their time. My guess is that they will choose somebody to run Fox News, like David Rhodes who's the head of CBS News, or some other major uh experience qualified and highly regarded news director, and they will continue to do what they do because even with the political bias uh and and and the social bias that Fox News has, it's a terrifically competent and very very strong competing news service uh and and holds its own with anybody,
even the major broadcast network news businesses. Can you give us your thoughts on some of the some of the stars at at Fox, Megan Kelly, uh Billa Riley and so on. Well, Bill Bill O'Reilly who had his own problems with sexual molestation a couple of years ago and was able to settle it in arbitration out of court, So it didn't get the kind of publicity that Gretchen Carlson's cases is uh lie to to end up becoming a major news story in the public courts. But O'Reilly's
got the option of retiring now. Uh and several other major players at Fox News have the similar option to If Roger Rails is no longer running the network, they can leave anytime they want. But but I think o'reiley is probably going to retire and maybe follow Glenn Beck into his own screening O'Reilly network. Thanks very much, Porter bib, managing partner Media Tech Capital Partners. Follow him on Twitter
at Porter three. This is taking Stock. Coming up on Bloomberg, we're gonna be speaking with Tuna Amobi equity analyst SMP Capital i Q and to talk about the shifts in the overall US pay television industry. That's next