Too long to post here in full, but this excerpt is telling:
The upshot is that the very propaganda organ the GOP helped build up for themselves is beginning to eat the party and soon will begin eating itself.By the beginning of this year, it was clear Beck would be leaving Fox. Ailes is a businessman, and he saw Beck, who had graced the covers of Forbes, Time, and The New York Times Magazine, leading rallies and becoming bigger than the Fox brand. Beck’s media company, Mercury Radio Arts, had broken the mold at Fox. He earned more than 90 percent of his reported $40 million income from non-Fox activities, including comedy tours, best-selling books, a magazine, and a subscription website. Ailes was peeved. When Beck rallied about 100,000 of his devoted followers in front of the Lincoln Memorial, Fox provided scant coverage of the event—CNN actually seemed to give it more play. And Fox executives told Beck he couldn’t promote the Blaze on-air.
Ailes also faced internal resistance to Beck’s rise. Sean Hannity complained to Bill Shine about Beck. And it didn’t help matters that O’Reilly, who had become friends with Beck and can’t stand Hannity, scheduled Beck as a regular guest, a move that only annoyed Hannity further.
In March 2010, the Washington Post ran an article that reported on grievances Fox employees had about Beck. Fox’s PR department is notoriously strict when it comes to internal leaks, and the public griping was seen from the outside as a measure of the unease about where Fox was heading. Ailes was angry with the leak. Two days after the article was published, he visited Fox’s D.C. bureau and scolded the staff. “For the first time in our fourteen years, we’ve had people apparently shooting in the tent, from within the tent,” he said. “Glenn Beck does his show, and that’s his opinion. It’s not the opinion of Fox News, and he has a right to say it … I was brought up to defend the family. If I couldn’t defend the family, I’d leave. I’d go to another family.”
Recently, the Blaze ran an article debunking conservative provocateur James O’Keefe’s NPR sting, which had received wall-to-wall coverage on Fox. And during another meeting, Ailes called Beck into his office and told him the show had grown too religious.
“God’s really busy, Glenn,” Ailes told him. “He can’t be listening to you.”
As Ailes figured out what to do with Beck, a new problem emerged: Sarah Palin. Inside Fox, Palin had become a source of frustration in some corners. In the wake of the 2008 campaign, the network had wanted to capitalize on her celebrity. But as Palin contemplated her political future, she began to worry that being a celebrity pundit on Fox was potentially at odds with her presidential aspirations.
Last year, tensions between Palin’s camp and Fox erupted over a prime-time special that the network wanted her to host. Nancy Duffy, a senior Fox producer, wanted Palin to host the show in front of a live studio audience. Duffy wanted to call the program Sarah Palin’s Real American Stories. Palin hated the idea. She complained to her advisers that she didn’t want to be a talk-show host. She wanted to just do voice-overs. More important, she didn’t want Fox to promote her name in the title of the program. Not that it mattered: Palin’s ratings were starting to disappoint Ailes anyway. Fox hasn’t scheduled any additional specials.
Ailes began to doubt Palin’s political instincts. He thought she was getting bad advice from her kitchen cabinet and saw her erratic behavior as a sign that she is a “loose cannon,” as one person close to him put it. A turning point in their relationship came during the apex of the media debate over the Tucson shooting. As the media pounced on Palin’s rhetoric, Palin wanted to fight back. She felt it was deeply unfair that commentators were singling her out. Ailes agreed but told her to stay out of it. He thought if she stayed quiet, she would score a victory.
“Lie low,” he told her. “If you want to respond later, fine, but do not interfere with the memorial service.”
Palin ignored Ailes’s advice and went ahead and released her now-infamous “blood libel” video the morning Obama traveled to Tucson. For Ailes, the move was further evidence that Palin was flailing around off-message. “Why did you call me for advice?” he wondered out loud to colleagues.
What had been an effort to boost ratings has recently become a complication for Fox. Employing potential presidential candidates has opened the network up to criticism that it is too politicized. As risible as liberals find the slogan “Fair and Balanced,” it was significantly more defensible before Ailes’s candidate-hiring binge.
As Ailes struggled with what to do with Glenn Beck in a changed political landscape, an older problem reared its head. In February, news broke that former lawyers for Judith Regan, the former HarperCollins publisher, claimed in sworn statements that Regan taped conversations in which Ailes had allegedly told her to lie to investigators about her affair with Bernie Kerik to help Ailes’s friend Rudy Giuliani’s 2008 presidential campaign. News Corp. issued a statement that quoted Regan denying she felt pressure, but it sparked a media frenzy for a couple of days. Regan blames Ailes for her negative press in the wake of her 2006 ouster from News Corp. and claims Ailes is trying to protect powerful interests. “Connect the dots,” she told me.
As Ailes’s history with Regan was racing back to the present, he had little choice but to force the hands of the candidates on his payroll. In late February, Shine made calls to Palin and her husband, Todd, to ask if she was going to run for president. The Palins told him they hadn’t decided. “I’m not sure Sarah has made up her mind one way or the other,” a Palin adviser told me. The network is working hard to get a definitive answer out of her. A couple of weeks earlier, Shine and Fox general counsel Dianne Brandi called Mike Huckabee into a meeting to ask him about his presidential ambitions.
In early March, Fox News suspended contracts for Gingrich and Santorum. Santorum was said to be angry at Fox’s decision. He hadn’t formally declared his candidacy when Fox decided he had to go, even as Ailes had allowed Palin and Huckabee to keep their lucrative gigs before making a decision. Last week, Huckabee finally did, choosing the Fox paycheck over the GOP primary. And in making his announcement on-air, he turned his Saturday-evening show into an odd ratings-grab spectacle. “I didn’t like the endgame; it was a bizarre-type thing,” Ed Rollins, Huckabee’s former ’08 campaign manager, told me.
In the halls of Fox News, people do not want to be caught talking about what will happen to Fox News after the Ailes era. The network continues to be Ailes’s singular vision, and he’s so far declined to name a successor. One possibility in the event Ailes departs when his contract is up in 2013 is that Bill Shine could continue to oversee prime time and Michael Clemente would run the news division. But more than one person described fearing Lord Of The Flies–type chaos in the wake of Ailes’s departure, so firm has his grip on power been.