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[cheering and applause]
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[man 1] Welcome, one and all,
to The Late Show.
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I'm your host, Stephen Colbert.
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[audience cheering]
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About two hours ago,
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Fox News settled their defamation suit
with Dominion Voting Systems.
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Damn it!
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I wanted to see Rupert Murdoch
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put his hand on the Bible
and burst into flames.
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[audience laughing]
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[dramatic music playing]
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- [horns beeping]
- [man shouting]
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[Jim Rutenberg]
2023 was one of the worst years
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in Rupert's entire career.
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[shouts] 'Cause Fox Lie!
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[Jim] Fox News settled a lawsuit
with the Dominion voting machine company
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for almost a billion dollars.
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Fox was already strapped for cash.
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Tucker Carlson can only afford
one facial expression.
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[man 2] Dominion had accused Fox News
of knowingly pushing
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false conspiracy theories
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{\an8}about what former President Trump
had claimed were rigged voting machines.
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So Fox knew this was all BS, and yet they
were hyping it to their viewers anyway.
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[chanting] Detox from Fox.
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[Jim] During the 2020 presidential race,
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Fox hosts gave airtime
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to conspiracy theories
about a stolen election.
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{\an8}These fraudulent ballots
will just be counted again.
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Fox News was trying to sell their bullshit
that Trump really won the election.
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{\an8}The machine ran an algorithm
that shaved votes from Trump
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{\an8}and awarded them to Biden.
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[man 3] The judge ruled that
everything Fox aired about Dominion
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and its voting machines
in the 2020 election was false.
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[camera clicking]
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[Jonathan Mahler] Their decision
to buy into the big lie
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created a credibility problem
for the company and for shareholders.
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So there are tensions
within the Murdoch family.
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Liz, James, and Prue are concerned
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about the direction
of the company under Lachlan,
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because this Dominion Voting settlement
happened under his leadership.
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At Fox News, there has always been
a push to the right.
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But now this is an existential matter
for the family.
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[Jonathan] An enormous amount is at stake.
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I mean, this is the most powerful
media empire in the world.
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And it begins to provoke a conversation
among the children
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about, well, what is gonna happen
when Rupert dies?
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Where do we go from here?
What will happen with the companies?
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So James is passing through London,
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and he reaches out to Liz and Prue
to meet with them.
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It's worth acknowledging
Lachlan is not invited.
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[Jonathan] James reserves a private room
inside the Claridge Hotel in London.
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And that meeting becomes a source
of a lot of debate… [scoffs]
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…and a lot of controversy.
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[Jim] Because as this is all unspooling,
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there's this article
in the Financial Times
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that really sets Lachlan off.
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There's a quote
from a source close to James
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that says, basically,
when Rupert dies, Lachlan's out.
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{\an8}[Jonathan] Of course,
that fuels Lachlan's paranoia.
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{\an8}- [man 4] Who is going to succeed?
- [man 5] Waiting in the wings…
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{\an8}[Jim] The chatter that James
will effect a coup with his sisters
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{\an8}was, in Lachlan's ears, deafening.
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The clear indication is,
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if James were to somehow effect a coup,
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he would change the direction of Fox
and would take it to the left.
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[Jonathan] And that's all in the air
as this meeting happens.
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[pulsing music playing]
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[Jim] So, at Claridge's,
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Liz, James, and Prue are definitely
venting about Lachlan
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but all say that they didn't
talk about getting rid of him.
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The most memorable thing about it
is Liz has a beer.
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[bottle opens, fizzes]
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But afterward, Prue gets
an alarming text from Lachlan
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asking her to call him.
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Prue is beside herself.
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Maybe he's found out about their meeting.
She doesn't know what to say.
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And she writes to Liz,
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"Lachlan trying to reach me!"
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And she does
a kind of exploding-head emoji.
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[music continues]
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[Jonathan] But, as it turns out,
he was reaching out to tell her
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about some changes
at one of the company's boards.
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[Jim] So it was actually pretty innocuous,
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but still, Lachlan's very unhappy.
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He's constantly reminding
or pointing out to his dad,
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"Look, look, look.
They're planning a coup."
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Rupert spent his entire lifetime
building Fox News
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and the rest of the conservative empire,
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so he sees it as his legacy.
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[Richard Cooke]
And there is only one of his children
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that Rupert trusts
with the Murdoch media empire
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operating in the interests
of conservative politics.
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He knows Lachlan will act
as an instrument of his will,
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even posthumously.
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[Jim] So Rupert and Lachlan decide,
"We've got to figure this out."
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And thus begins an aggressive plot
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to take control of the empire
once and for all.
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[dramatic music playing]
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[music softens]
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[music ends]
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- [children chattering]
- [string music playing]
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[Paul Barry] Rupert portrays himself
as someone who came from nothing,
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who built his empire out of nothing.
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But he grew up in a house
that had 30 rooms.
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It had a tower,
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four acres of gardens,
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a ballroom. They had ten servants.
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So Rupert wasn't just born
with a silver spoon in his mouth.
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He had a whole set of gold cutlery.
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[Paddy Manning] His father, Keith,
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was the most powerful newspaper man
in Australia,
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with one of the top-selling tabloids
in Melbourne.
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And Rupert grew up
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wanting to emulate his father.
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The way that his father made money was
through a populist messaging apparatus.
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[Paul] He pioneers
modern tabloid journalism in Australia.
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Snappy headlines, competitions,
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sport, and crime.
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[Paddy] He was a kingmaker in his day.
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He was able to seat
and unseat prime ministers.
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[Paul] Rupert's born in 1931.
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He's the second child.
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The first is a girl.
Two more girls come after.
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Rupert, as the boy, was naturally the one
that his father looked to to succeed him.
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But he was not great at sports.
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He was not particularly focused in school.
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His headmaster said
he was the most unpleasant,
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most difficult pupil he'd ever taught.
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He was rebellious, arrogant,
didn't like authority.
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So he's a guy
who's got a lot of privilege about him,
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and he behaves like that.
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[church bell tolls]
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[man 1] Keith had sent him to Oxford
to rub shoulders with future influencers
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and make something of himself.
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And instead, Rupert was driving fast,
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gambling, drinking, smoking,
having a great time.
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[curious music playing]
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[David] So Keith Murdoch was not convinced
that Rupert was a good representation
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of what the Murdoch family name
should embody.
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[bells chime]
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[Rupert] I was sleeping inone Sunday morning in my flat at Oxford
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when my tutor came in and woke me upand told me that my father had died.
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Any memory I really have of itis one of, um, complete shock.
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[David] Rupert's father died
rather abruptly.
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In his will, Keith Murdoch said
that he hoped for his only son,
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Keith Rupert Murdoch,
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to have a useful, altruistic,
and full life
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in newspapering and broadcasting,
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which is quite a charge.
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I was burdened with this anxiety
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for Rupert.
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He was so very young,
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and I did long to be able to help Rupert
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to prove worthy of his father.
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[Walter] From Elisabeth's perspective,
she's got this 21-year-old son
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who's totally unproven
when it comes to being a journalist,
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let alone running a media empire.
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And so after the funeral, Keith Murdoch's
former colleagues take control.
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[Paddy] The executors of his estate
talked Dame Elisabeth into selling
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the bulk of the media business
that Keith had built up.
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Rupert is outraged.
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He believes that the people
that used to work for his father
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have now betrayed him,
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and his inheritance has been stolen
out from under him.
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[David] Rupert carried this with him
for his entire life.
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Not a chip, but a boulder on his shoulder.
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[Paddy] And he spends
the next 45 years getting even.
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[reporter 1] Mr. Murdoch, sir.
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[cameras clicking]
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[Paul] People always ask,
"What drives Rupert?"
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Everyone thinks that it's money,
but it's really the game.
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[Paddy] By the mid '90s,
Rupert was on a winning streak.
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The Murdoch empire is sprawling.
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It's in the US, UK, and Australia.
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[Sarah] He has 20th Century Fox,
movie studios, television.
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{\an8}[woman 1] His communications empire
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includes everything
from satellite companies
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to some of the biggest newspapers
in the world.
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Forbes magazine estimates his fortune
to be worth $4 billion.
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[McKay Coppins] Rupert had already
acquired a villainous reputation
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for his down-market tabloids
and conservative politics.
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[Rupert] Our company is a reflection
of my thinking,
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my character, and my values.
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[Sarah] His guiding light was poking
whoever he viewed as the Establishment.
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When it's going well, push it.
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[Jim] 1996 is the most important year
in Rupert Murdoch's career.
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And it's important for two words.
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Fox News.
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As you know, Fox has had
a phenomenal growth in the last few years,
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and now we have to move, uh, to making
ourselves the best in news programming.
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Rupert saw a real business opportunity.
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{\an8}Good morning, and welcome to MSNBC.
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{\an8}[Sarah] He saw all of the news operations
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{\an8}fighting for the same
left-of-center audience,
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{\an8}and there's no real conservative voice
in the news.
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[reporter 2] Murdoch is vowing to offeran alternative
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to what he claimsis a liberal bias in the media.
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Recognizing an audience
that isn't being catered to
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and speaking to them directly,
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this is the model
for the Murdoch media empire.
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[Sarah] So Rupert launched Fox News.
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We've been very lucky in being able
to obtain the services of Mr. Roger Ailes.
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00:11:06,415 --> 00:11:09,877
I'd like to thank Mr. Murdoch for
the kind words. Thank you all for coming…
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[Sarah] Like Rupert Murdoch, Roger Ailes
was deep into conservative politics.
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00:11:14,632 --> 00:11:19,428
We'd like to, uh, restore objectivity
where we find it lacking,
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and, uh, we just expect
to do fine, balanced journalism.
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00:11:24,684 --> 00:11:26,977
Roger Ailes is
one of the smartest people I've met.
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Smartest, canny.
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00:11:29,146 --> 00:11:31,899
It's like talking to Satan.
Like, Satan's smart.
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00:11:33,818 --> 00:11:37,446
[Matthew Belloni] It depends who you are,
how you describe the relationship
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between Roger Ailes and Rupert Murdoch.
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00:11:40,950 --> 00:11:45,579
They are either supervillains
that came together to dominate the world,
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or they are mutual geniuses
who recognize market value.
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00:11:51,085 --> 00:11:52,837
Considering his choice of Ailes,
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and that his conservative fingerprints
are smudged all over his newspapers,
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many analysts wonder
if he will use the TV news channel
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to spread his gospel.
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[man 2] How did it happen?
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How did television news
become so predictable,
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and in some cases, so boring?
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Well, we're going to try to be different.
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{\an8}[theme music playing]
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{\an8}[man 3] We launched in the fall of 1996.
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{\an8}[reporter 3] The debutof the Fox News Channel.
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00:12:15,860 --> 00:12:18,112
{\an8}[man 3] We were sort of outcasts,
like pirates,
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00:12:18,195 --> 00:12:22,908
{\an8}and being part of that sort of outsider,
anti-establishment crusade was fun.
227
00:12:22,992 --> 00:12:24,952
{\an8}Chandra Levy was killed
by an acquaintance…
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{\an8}But one of my fellow editors at CNN said,
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00:12:27,747 --> 00:12:30,875
"Be careful. Ailes does not have
the best reputation."
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He has this pugnacious sort of style,
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00:12:33,669 --> 00:12:36,255
so he was known as a ruthless character.
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[woman 2] The Fox News Channel
was Roger's fiefdom.
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00:12:40,551 --> 00:12:45,139
He had a lot of latitude
and unilateral control.
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But he followed the playbook
of the other Murdoch media properties.
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[Matthew] It was taking the ethos
of the New York Post
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and bringing it
to a vibrant television screen.
237
00:12:55,983 --> 00:12:58,194
Whether it was an American flag
238
00:12:58,277 --> 00:13:01,405
or splashy graphics,
there's something to look at.
239
00:13:01,489 --> 00:13:03,824
[David Shuster] "Ding," Fox News alert.
240
00:13:04,408 --> 00:13:07,703
"Ding." [laughs] Over and over and over.
241
00:13:08,329 --> 00:13:14,251
They believed that you had to grab
the audience, the viewer, visually first.
242
00:13:15,294 --> 00:13:17,713
[David Shuster] Fox hired
people who were good-looking.
243
00:13:18,214 --> 00:13:24,094
[Sarah] More makeup, more hairspray,
shorter skirts, and higher heels.
244
00:13:24,595 --> 00:13:27,097
Roger Ailes came up with the idea
of a translucent desk
245
00:13:27,181 --> 00:13:31,185
because he wanted the audience to be able
to see the legs of his female anchors.
246
00:13:31,268 --> 00:13:32,728
[anchor] …got rid of valedictorians.
247
00:13:32,812 --> 00:13:35,606
Ailes wanted an image
that you would stop on.
248
00:13:35,689 --> 00:13:38,692
And… you know, I don't think he was wrong.
249
00:13:38,776 --> 00:13:41,237
[applause and cheering]
250
00:13:41,821 --> 00:13:45,574
[Richard] They realized that
what the American public wanted,
251
00:13:45,658 --> 00:13:47,910
almost more than anything else,
252
00:13:47,993 --> 00:13:51,497
was an attractive young woman
with the opinions of an old man.
253
00:13:53,207 --> 00:13:56,585
[Sarah] Just as Ailes and Rupert Murdoch
are launching Fox,
254
00:13:57,086 --> 00:14:00,047
a story on the national stage
breaks through.
255
00:14:00,130 --> 00:14:01,966
[theme music playing]
256
00:14:02,049 --> 00:14:05,219
- [reporter 4] The president's on trial.- The impeachment of President Clinton.
257
00:14:05,302 --> 00:14:06,804
Bill Clinton strung us all along.
258
00:14:06,887 --> 00:14:10,307
[Sarah] It's Bill Clinton's alleged affair
with Monica Lewinsky,
259
00:14:10,391 --> 00:14:14,854
and it's catnip for Fox News's viewers.
260
00:14:14,937 --> 00:14:17,231
[reporter 5] CBS News has uncoverednew pictures…
261
00:14:17,314 --> 00:14:19,233
[Sarah] Everybody was covering that story,
262
00:14:19,817 --> 00:14:24,488
{\an8}but no one was covering it
with the same kind of glee that Fox was.
263
00:14:24,572 --> 00:14:26,657
This is a very good dayfor a number of lawyers
264
00:14:26,740 --> 00:14:28,868
involved inthe Monica Lewinsky investigation.
265
00:14:28,951 --> 00:14:31,287
We're hitting a sitting president.
Hitting him hard.
266
00:14:31,370 --> 00:14:32,746
He definitely lied.
267
00:14:32,830 --> 00:14:35,624
{\an8}[David Shuster] We were encouraged
to play by different rules.
268
00:14:35,708 --> 00:14:39,670
{\an8}To go all in
on a scandalous tabloid kind of story…
269
00:14:39,753 --> 00:14:41,297
Monica Lewinsky's chance…
270
00:14:41,380 --> 00:14:43,966
[David] …without the kind
of careful journalistic balance
271
00:14:44,049 --> 00:14:45,926
that had preceded years before.
272
00:14:46,010 --> 00:14:48,470
The Lewinsky case challenges all of us.
273
00:14:48,554 --> 00:14:52,725
You and I, the American people,will have to render the final verdict.
274
00:14:53,309 --> 00:14:57,438
{\an8}[Alisyn] That's when Fox News Channel
found its voice,
275
00:14:57,521 --> 00:15:00,441
and the ratings spiked.
276
00:15:00,524 --> 00:15:03,903
{\an8}Tonight, it's worth pointing out
that the Fox News Channel has succeeded
277
00:15:03,986 --> 00:15:05,112
{\an8}against all odds.
278
00:15:05,195 --> 00:15:09,742
{\an8}It's hard to imagine that they could have
launched with as much of a bang
279
00:15:09,825 --> 00:15:13,412
if they didn't have that story
to chew on every single night.
280
00:15:14,121 --> 00:15:17,833
Fox News established that you can make
a ton of money and get a huge audience
281
00:15:17,917 --> 00:15:20,794
not by doing straight news, but by
giving people what they want.
282
00:15:21,962 --> 00:15:24,798
[woman 3] For all you kids at home,
Santa just is white.
283
00:15:25,299 --> 00:15:27,968
{\an8}You know, I mean,
Jesus was a white man too.
284
00:15:28,719 --> 00:15:32,222
[Sarah] They took this populist tendency
and put it on steroids.
285
00:15:32,306 --> 00:15:37,019
{\an8}Mexico has announced it will provide
up to 200,000 survival kits
286
00:15:37,102 --> 00:15:41,565
{\an8}to those planning to illegally
cross the border into the US.
287
00:15:42,149 --> 00:15:44,818
[Richard] Rupert said it was like
picking money up off the street.
288
00:15:45,945 --> 00:15:48,530
He was shameless about it, proud of it,
289
00:15:49,031 --> 00:15:50,449
and with good reason.
290
00:15:50,950 --> 00:15:53,869
It made him
phenomenally wealthy and powerful.
291
00:15:56,038 --> 00:15:59,375
[McKay] Rupert made very clear early on
292
00:15:59,458 --> 00:16:03,712
that he wanted
this huge, multinational conglomerate,
293
00:16:03,796 --> 00:16:07,716
publicly traded,
wildly successful media company
294
00:16:07,800 --> 00:16:09,009
to be a family business.
295
00:16:10,511 --> 00:16:13,597
[Lachlan] We talked as a family together
about business.
296
00:16:13,681 --> 00:16:16,600
And, of course,
that today is still the case.
297
00:16:16,684 --> 00:16:20,896
So I talk with my sister
and my brother and my dad about business
298
00:16:20,980 --> 00:16:23,232
on… on… on almost a daily basis.
299
00:16:24,483 --> 00:16:26,860
[Elisabeth] We were given
wonderful opportunities.
300
00:16:27,695 --> 00:16:30,531
We've also been
very much aware of the fact
301
00:16:30,614 --> 00:16:35,703
that there's pretty serious expectation
that you better prove what you're doing.
302
00:16:35,786 --> 00:16:39,748
As they talk about it within the family,
he wasn't raising children.
303
00:16:39,832 --> 00:16:42,001
He was raising possible successors.
304
00:16:42,084 --> 00:16:45,921
[Sarah] And it created this rivalry
among the kids.
305
00:16:46,005 --> 00:16:49,842
It's like he's throwing blood into
the water and letting them fight it out.
306
00:16:51,010 --> 00:16:54,096
[Elisabeth] I think my drive
comes from the same place
307
00:16:54,179 --> 00:16:56,557
that my dad's does.
308
00:16:56,640 --> 00:16:59,476
There's obviously a sense
of competitive drive,
309
00:16:59,560 --> 00:17:03,313
and there's a sense of real ambition.
310
00:17:03,397 --> 00:17:04,732
[enigmatic music playing]
311
00:17:04,815 --> 00:17:06,650
[David Folkenflik] In the late 1990s,
312
00:17:06,734 --> 00:17:10,404
Elisabeth goes to work
for her father at Sky,
313
00:17:10,946 --> 00:17:14,324
the major British
satellite TV conglomerate.
314
00:17:14,825 --> 00:17:17,786
Rupert really installed
very tough people there.
315
00:17:18,704 --> 00:17:22,666
[McKay] It was, like, macho
and nasty and belligerent.
316
00:17:24,293 --> 00:17:27,129
[Claire] What I heard
from people who worked with Liz
317
00:17:27,212 --> 00:17:29,298
is that she's like her dad.
318
00:17:29,882 --> 00:17:33,052
She's a very ideas-oriented person.
319
00:17:33,135 --> 00:17:37,514
Elisabeth has a creative eye that
neither of her brothers really possess.
320
00:17:38,265 --> 00:17:42,102
[Claire] If we're talking about what
her big contribution to the company is,
321
00:17:42,186 --> 00:17:45,773
it's that she spotted,
I think it was called Pop Idol in the UK,
322
00:17:45,856 --> 00:17:48,984
and said to Dad,
"I think that we need this show."
323
00:17:49,068 --> 00:17:51,236
[man 4] America has made their decision.
324
00:17:51,320 --> 00:17:53,447
[Claire] And they renamed it
American Idol.
325
00:17:53,947 --> 00:17:55,324
[man 4] Kelly Clarkson.
326
00:17:55,407 --> 00:17:56,784
[audience cheering]
327
00:17:56,867 --> 00:17:59,244
[Claire] It was transformative for Fox.
328
00:18:00,329 --> 00:18:02,164
[Paul] People, they're impressed by her.
329
00:18:02,247 --> 00:18:05,292
She has shown that she can build
and run TV stations.
330
00:18:06,502 --> 00:18:09,838
[Claire] I think she thought that,
one day, she might be the CEO at Sky.
331
00:18:10,339 --> 00:18:12,382
I think Dad thought otherwise.
332
00:18:12,466 --> 00:18:15,427
Perhaps because she was a woman,
it wasn't enough.
333
00:18:15,511 --> 00:18:18,764
[David] He treats her as disrespectfully
and in as sexist a manner
334
00:18:18,847 --> 00:18:23,060
as you could expect
that a person of his generation might do.
335
00:18:23,894 --> 00:18:26,230
[Paul] She's a young mother with two kids.
336
00:18:26,313 --> 00:18:29,149
[Sarah] And Rupert makes these sexist,
undermining comments
337
00:18:29,233 --> 00:18:31,110
about her having children
338
00:18:31,193 --> 00:18:34,279
and how she needs to figure out
what she wants to do with her life.
339
00:18:35,697 --> 00:18:37,950
She feels she's not being given a chance.
340
00:18:38,450 --> 00:18:41,620
And so she faxes
a resignation letter to her father.
341
00:18:43,956 --> 00:18:46,458
[Sarah] It's a classic Murdoch move.
342
00:18:46,542 --> 00:18:48,293
And her father respects that.
343
00:18:48,961 --> 00:18:52,464
[Elisabeth] I think he was surprised
that I decided to leave.
344
00:18:52,548 --> 00:18:55,676
But I think also great pride.
Um, I think he got it.
345
00:18:56,260 --> 00:18:57,594
[purposeful music playing]
346
00:18:57,678 --> 00:19:00,639
[Sarah] She starts her own
production company called Shine.
347
00:19:00,722 --> 00:19:03,725
[Rupert] She's not given up her ambitions,
by any means,
348
00:19:03,809 --> 00:19:05,394
to play a part in the company.
349
00:19:05,894 --> 00:19:09,773
But we'll have to see how things
settle down in her own career.
350
00:19:10,774 --> 00:19:13,610
[McKay] There were always rumors
in the company
351
00:19:13,694 --> 00:19:19,116
that Liz was the dark horse candidate
to become Rupert's successor.
352
00:19:19,741 --> 00:19:22,202
And she was playing the long game.
353
00:19:22,286 --> 00:19:24,413
That by building
her own successful company
354
00:19:24,496 --> 00:19:26,999
outside of the Murdoch umbrella,
355
00:19:27,082 --> 00:19:29,835
that one day she would come back
and "kill her brothers."
356
00:19:31,170 --> 00:19:33,380
[cameras clicking]
357
00:19:33,463 --> 00:19:34,798
Morning, everybody.
358
00:19:35,966 --> 00:19:37,801
[woman 4] 25-year-old Lachlan Murdoch
359
00:19:37,885 --> 00:19:41,597
is taking over control
of his father's Australian operations.
360
00:19:41,680 --> 00:19:42,890
[Paul] By the mid to late '90s,
361
00:19:42,973 --> 00:19:46,727
Lachlan is in charge
of the whole of the Australian empire.
362
00:19:46,810 --> 00:19:50,230
He's a bit of a rock star,
but he's not a journalist.
363
00:19:50,314 --> 00:19:53,275
He's not a businessman.
He's not got an MBA.
364
00:19:53,358 --> 00:19:57,154
[woman 5] There's a lot of focus on
who will be Rupert Murdoch's successor.
365
00:19:57,237 --> 00:19:59,615
Do you think that could be you
of the four children?
366
00:19:59,698 --> 00:20:01,700
Oh, I… I can't think that far ahead.
367
00:20:01,783 --> 00:20:04,494
I'll do the best job I can,
and we'll see what happens.
368
00:20:05,537 --> 00:20:07,623
I'm very pleased about it,
but it'll be a test.
369
00:20:08,665 --> 00:20:10,834
[Paul] He's not
incredibly highly regarded,
370
00:20:10,918 --> 00:20:13,420
but he's got good people around him.
371
00:20:13,503 --> 00:20:17,382
And those good people know that
if they want to get into the organization,
372
00:20:17,466 --> 00:20:20,177
they need to help Lachlan,
because Rupert is looking.
373
00:20:20,844 --> 00:20:23,722
[reporter 6] They're Australia'sglamorous, golden couple.
374
00:20:23,805 --> 00:20:26,266
Lachlan Murdoch, heir to a media fortune,
375
00:20:26,350 --> 00:20:29,436
and Sarah, a successful model,TV presenter,
376
00:20:29,519 --> 00:20:31,688
and all-round great Aussie girl.
377
00:20:31,772 --> 00:20:33,774
[quirky music playing]
378
00:20:35,484 --> 00:20:37,903
[reporter 7] Fit enoughto marry a supermodel,
379
00:20:37,986 --> 00:20:41,365
Lachlan Murdoch started his wedding daywith a morning run.
380
00:20:41,448 --> 00:20:43,867
- Mr. Murdoch, looking forward to the day?
- Absolutely.
381
00:20:45,744 --> 00:20:48,956
[woman 6] The Murdoch clan has gathered
at the family's property near Yass
382
00:20:49,039 --> 00:20:51,208
for what's been labeled
the wedding of the year.
383
00:20:52,209 --> 00:20:54,586
[Paddy] He's married the supermodel
Sarah O'Hare,
384
00:20:54,670 --> 00:20:57,214
and he started a family.
385
00:20:57,798 --> 00:20:59,633
He's fabulously rich.
386
00:21:00,467 --> 00:21:02,010
They are like royalty.
387
00:21:03,011 --> 00:21:05,180
[Matthew] He loves it there.
He loves the lifestyle.
388
00:21:06,807 --> 00:21:09,184
He feels like he is at home.
389
00:21:10,310 --> 00:21:14,398
[Paddy] But if he's to be the successor,
it's clear that Lachlan has to come
390
00:21:14,481 --> 00:21:17,317
where the center of gravity is
for News Corporation,
391
00:21:17,818 --> 00:21:19,278
and that's in America.
392
00:21:19,778 --> 00:21:21,947
[reporter 8] Goodbye,Network 10 Australia,
393
00:21:22,030 --> 00:21:23,407
and hello, New York.
394
00:21:24,491 --> 00:21:27,244
[Paddy] Lachlan and his family
move to New York,
395
00:21:27,327 --> 00:21:31,081
and he becomes an executive
at News Corporation.
396
00:21:31,164 --> 00:21:32,708
[dynamic music playing]
397
00:21:32,791 --> 00:21:34,293
He was clearly the favorite.
398
00:21:34,376 --> 00:21:37,671
♪ Twenty-five centsfor the New York Post ♪
399
00:21:37,754 --> 00:21:41,133
[McKay] He was learning
the ways of the New York Post
400
00:21:41,216 --> 00:21:42,467
and the newspaper business,
401
00:21:42,551 --> 00:21:44,928
which was what Rupert cared about most,
402
00:21:45,012 --> 00:21:46,638
and he was the oldest son.
403
00:21:47,639 --> 00:21:51,476
[Paul] Lachlan from the very beginning,
really, is the one who's being groomed,
404
00:21:51,560 --> 00:21:54,146
and the one
who's being given the easiest run.
405
00:21:54,646 --> 00:21:59,276
And Rupert is describing Lachlan
as the "first among equals."
406
00:22:00,068 --> 00:22:02,988
That doesn't go down too well with James.
407
00:22:03,572 --> 00:22:06,158
[McKay] James was running
an independent hip-hop label
408
00:22:06,241 --> 00:22:09,119
called Rawkus Records with his friends.
409
00:22:09,202 --> 00:22:14,207
They actually discovered some of
the emerging hip-hop talent in Brooklyn.
410
00:22:14,291 --> 00:22:15,417
Mos Def.
411
00:22:15,500 --> 00:22:16,501
♪ I'm Slim Shady… ♪
412
00:22:16,585 --> 00:22:18,670
[McKay] They worked with Eminem
at one point.
413
00:22:18,754 --> 00:22:20,922
[curious music playing]
414
00:22:21,006 --> 00:22:24,176
I think James wanted to think of himself
415
00:22:24,259 --> 00:22:27,137
as someone who was going
to chart his own course,
416
00:22:27,220 --> 00:22:32,267
and he resisted Rupert's efforts
to put him to work in the family business.
417
00:22:32,851 --> 00:22:36,605
But there was
this gravitational pull from Rupert
418
00:22:36,688 --> 00:22:39,107
to get James back into his orbit.
419
00:22:39,191 --> 00:22:41,360
[suspenseful music playing]
420
00:22:41,443 --> 00:22:44,237
Rupert decided to buy Rawkus Records.
421
00:22:45,864 --> 00:22:51,161
I don't think Rupert particularly cared
for the emerging hip-hop scene,
422
00:22:51,244 --> 00:22:53,038
but buying the label
423
00:22:53,121 --> 00:22:57,042
was an easy way
for him to force his son's hand
424
00:22:57,125 --> 00:22:58,919
and get him into the company.
425
00:22:59,753 --> 00:23:02,756
Also, James had grown up
426
00:23:02,839 --> 00:23:07,260
believing that the Murdoch media empire
was the center of the universe.
427
00:23:08,762 --> 00:23:12,766
So when his dad said,
"I want you to come work for me, son,
428
00:23:12,849 --> 00:23:15,894
I'm gonna trust you with this,"
it meant a lot.
429
00:23:15,977 --> 00:23:18,021
[indistinct chattering]
430
00:23:18,688 --> 00:23:21,566
[Paul] Rupert manages to put him in a suit
and get his hair cut,
431
00:23:21,650 --> 00:23:22,818
and bring him into line.
432
00:23:25,737 --> 00:23:29,574
[David] James goes over
to work for Star TV in Asia.
433
00:23:31,493 --> 00:23:34,204
[McKay] James is 27 years old
at this point.
434
00:23:34,287 --> 00:23:38,041
He's had really
no meaningful corporate experience.
435
00:23:38,125 --> 00:23:40,335
People at News Corp thought
it was a suicide mission.
436
00:23:41,294 --> 00:23:43,880
There was no reason to believe
437
00:23:43,964 --> 00:23:48,718
that a green 27-year-old
could go to Hong Kong
438
00:23:48,802 --> 00:23:51,138
and turn around a company
439
00:23:51,221 --> 00:23:54,516
that had lost, I think,
in recent years, $100 million.
440
00:23:55,100 --> 00:23:58,478
But James, I think,
was excited by the challenge,
441
00:23:58,562 --> 00:24:03,984
excited that his dad seemed to trust him,
and earnestly went out there
442
00:24:04,067 --> 00:24:06,987
believing that he could
do big things there.
443
00:24:08,572 --> 00:24:11,158
[Jim] James had to show
that he could play his father's game.
444
00:24:11,241 --> 00:24:14,327
He needed to prove it to his father
but also to the world.
445
00:24:14,411 --> 00:24:16,705
That meant compromising on some things.
446
00:24:16,788 --> 00:24:20,167
[reporter 9] There were political protestson the issue of human rights.
447
00:24:20,667 --> 00:24:23,420
[Sarah] James is very willing
to look the other way
448
00:24:23,503 --> 00:24:26,131
when it comes
to human rights abuses in China.
449
00:24:27,674 --> 00:24:30,760
[reporter 10] Murdoch pulled outof publishing the memoirs of Chris Patten,
450
00:24:30,844 --> 00:24:34,764
the former governor of Hong Kongand critic of the Chinese government.
451
00:24:34,848 --> 00:24:36,683
[tense music playing]
452
00:24:36,766 --> 00:24:38,435
[Richard] They made him eat shit.
453
00:24:38,518 --> 00:24:40,061
They made him give speeches
454
00:24:40,145 --> 00:24:43,482
about how you had to respect
other countries' ways of doing things,
455
00:24:43,565 --> 00:24:46,151
and democracy wasn't always the answer.
456
00:24:47,235 --> 00:24:49,279
[James] The press doesn't need
to talk down to people.
457
00:24:49,362 --> 00:24:52,532
The press doesn't need to educate.
The press is just a tool.
458
00:24:53,158 --> 00:24:56,286
[Sarah] He wants to own the identity
of being a Murdoch
459
00:24:56,369 --> 00:24:58,580
and being a kind of ruthless businessman.
460
00:24:59,831 --> 00:25:01,416
[McKay] His early assignments,
461
00:25:01,500 --> 00:25:05,086
he was really eager
to prove himself to his dad
462
00:25:05,170 --> 00:25:07,464
and to be seen as a good soldier.
463
00:25:07,547 --> 00:25:09,049
[fireworks whistling]
464
00:25:09,758 --> 00:25:12,636
[Richard] So James spearheaded
these efforts.
465
00:25:13,637 --> 00:25:16,515
And for a while,
it looks like it will work.
466
00:25:17,682 --> 00:25:22,896
But China is a graveyard
for a lot of Western businesses.
467
00:25:23,897 --> 00:25:26,691
The Chinese Communist Party,
they just played him along.
468
00:25:27,567 --> 00:25:30,737
It all wound up not doing anything for him
469
00:25:30,820 --> 00:25:32,531
other than wasting time and money.
470
00:25:35,450 --> 00:25:40,997
He is unsuccessful in opening up China
to the degree that they had hoped.
471
00:25:42,040 --> 00:25:44,626
{\an8}[Paul] But James always had
a pretty high opinion of himself
472
00:25:44,709 --> 00:25:47,254
{\an8}and I think he was
incredibly competitive with Lachlan,
473
00:25:47,337 --> 00:25:49,506
and so I don't think he ever gave up.
474
00:25:49,589 --> 00:25:51,049
{\an8}James, welcome to Walk the Talk.
475
00:25:51,132 --> 00:25:53,009
{\an8}Thank you so much. It's great to be here.
476
00:25:53,093 --> 00:25:56,096
[McKay] He pivots the growth strategy
to India,
477
00:25:56,179 --> 00:26:00,183
where he develops
a big new slate of programming,
478
00:26:00,267 --> 00:26:03,603
including an Indian version
of Who Wants to Be a Millionaire?,
479
00:26:03,687 --> 00:26:05,730
which becomes a national sensation.
480
00:26:05,814 --> 00:26:07,190
Best of luck to you, Naveen.
481
00:26:07,691 --> 00:26:09,484
[McKay] He also sees
482
00:26:09,568 --> 00:26:13,321
a lot of organizational mismanagement
and chaos.
483
00:26:14,322 --> 00:26:18,702
James had to instill
a professional corporate culture.
484
00:26:18,785 --> 00:26:20,954
And he, by all accounts, succeeded.
485
00:26:21,913 --> 00:26:26,960
Within, I think, two years of his time,
Star turned a profit in Asia.
486
00:26:27,752 --> 00:26:31,381
James actually remembers
coming back for a board meeting one day
487
00:26:31,464 --> 00:26:34,759
and having one of the directors
pull him aside and say,
488
00:26:34,843 --> 00:26:37,012
"I didn't think
you had it in you. Congrats."
489
00:26:41,349 --> 00:26:45,645
At the time, both James and Lachlan
were on the board for News Corp.
490
00:26:45,729 --> 00:26:49,608
And when they would get in the room
at these board meetings,
491
00:26:49,691 --> 00:26:53,445
it was an opportunity for both of them
to perform for their father.
492
00:26:53,528 --> 00:26:54,613
[cartoon music playing]
493
00:26:54,696 --> 00:26:59,576
And I think maybe implicitly to compete
with each other in front of their father.
494
00:26:59,659 --> 00:27:01,453
[tense music playing]
495
00:27:01,536 --> 00:27:05,749
James would come in
challenging every point that Lachlan made.
496
00:27:06,708 --> 00:27:08,501
They were bickering a lot.
497
00:27:09,002 --> 00:27:12,088
And some people who remember those moments
498
00:27:12,172 --> 00:27:15,091
will say that they felt bad for Lachlan,
499
00:27:15,175 --> 00:27:17,844
and that it was awkward
for everyone involved.
500
00:27:18,720 --> 00:27:21,264
But the fact that James was succeeding
501
00:27:21,348 --> 00:27:25,727
started a lot of speculation
inside the News Corp headquarters
502
00:27:25,810 --> 00:27:29,773
about whether James would actually
overtake his older brother
503
00:27:29,856 --> 00:27:31,650
to become the successor.
504
00:27:31,733 --> 00:27:32,859
[music ends]
505
00:27:34,903 --> 00:27:37,781
Lachlan, meanwhile, has been laboring
506
00:27:37,864 --> 00:27:44,037
in the claustrophobic confines
of the New York News Corp headquarters,
507
00:27:44,120 --> 00:27:46,039
working at Fox News.
508
00:27:47,415 --> 00:27:50,126
[Paul] He's thought of as quite lazy
by some people,
509
00:27:50,210 --> 00:27:52,212
as quite arrogant by some people,
510
00:27:52,295 --> 00:27:55,090
as quite pleased with himself
by some people.
511
00:27:55,173 --> 00:28:00,220
Now, that may be unfair,
but it's a recurrent story that you get.
512
00:28:00,887 --> 00:28:03,640
[McKay] But his words carried
a certain amount of weight,
513
00:28:03,723 --> 00:28:06,434
maybe a disproportionate amount of weight,
514
00:28:06,518 --> 00:28:08,853
because he was the boss's son.
515
00:28:09,479 --> 00:28:12,732
And there were certain people
in the company,
516
00:28:12,816 --> 00:28:14,734
like Roger Ailes,
517
00:28:14,818 --> 00:28:19,364
who really resented
how much respect Lachlan commanded.
518
00:28:20,365 --> 00:28:23,368
[Matthew] The impression at Fox
at the time
519
00:28:23,451 --> 00:28:26,121
was that they were babysitting,
520
00:28:26,204 --> 00:28:28,331
and they did not like that.
521
00:28:29,666 --> 00:28:33,878
So Lachlan knew
that he had to prove himself
522
00:28:33,962 --> 00:28:36,005
at a pretty significant moment
for Fox News.
523
00:28:38,341 --> 00:28:40,468
- [siren wailing]
- [man shouting]
524
00:28:40,552 --> 00:28:43,930
[woman 7] An incredible plane crashinto the World Trade Center
525
00:28:44,013 --> 00:28:46,391
{\an8}here at the lower tip of Manhattan.
526
00:28:46,474 --> 00:28:51,146
{\an8}[reporter 11] Another plane just flewinto the second tower.
527
00:28:51,813 --> 00:28:55,567
{\an8}[Sarah] 9/11 and a terrorist attack
on the United States
528
00:28:55,650 --> 00:28:57,444
{\an8}was a perfect moment for Fox.
529
00:28:57,527 --> 00:29:00,780
{\an8}[reporter 12] You're either with usagainst the terrorists or you're with…
530
00:29:00,864 --> 00:29:04,451
{\an8}[Sarah] They were taking advantage
of a broad fear in the American public
531
00:29:04,534 --> 00:29:06,995
{\an8}and harnessing it and running with it.
532
00:29:07,787 --> 00:29:11,374
[Alisyn] Roger Ailes personally
had an anti-Muslim bias,
533
00:29:11,458 --> 00:29:15,503
and that attitude
showed up quite vividly on air.
534
00:29:15,587 --> 00:29:17,922
{\an8}[reporter 13]
Palestinians dancing in the street.
535
00:29:18,006 --> 00:29:19,340
{\an8}How did that make you feel?
536
00:29:19,424 --> 00:29:23,553
{\an8}That was the drum that we beat
every day, all day.
537
00:29:24,387 --> 00:29:26,389
[Paddy] In the days after 9/11,
538
00:29:26,473 --> 00:29:30,393
there was a panic
about anthrax being sent around
539
00:29:30,477 --> 00:29:34,397
to various government offices
and media businesses.
540
00:29:34,481 --> 00:29:35,982
[George W. Bush] As all Americans know,
541
00:29:36,065 --> 00:29:40,236
recent weeks have brought a second waveof terrorist attacks upon our country.
542
00:29:40,320 --> 00:29:43,031
Deadly anthrax sporessent through the US mail.
543
00:29:43,114 --> 00:29:46,201
[reporter 14] In just a week, we have hadfour confirmed cases of anthrax,
544
00:29:46,284 --> 00:29:48,161
all with media connections.
545
00:29:48,244 --> 00:29:50,246
- [tense music playing]
- [applause]
546
00:29:52,081 --> 00:29:54,751
{\an8}America has always stood
for human freedom.
547
00:29:54,834 --> 00:29:59,255
{\an8}[Sarah] So amid this environment
where everyone is on high alert,
548
00:29:59,339 --> 00:30:02,342
{\an8}the yearly Al Smith dinner
hosts Roger Ailes.
549
00:30:02,842 --> 00:30:04,469
Actually Bill Clinton, this year…
550
00:30:04,552 --> 00:30:06,095
[Sarah] That happens to be the night
551
00:30:06,179 --> 00:30:10,642
when they learn that an envelope
full of white powder
552
00:30:10,725 --> 00:30:12,435
has been sent to the Fox office.
553
00:30:13,853 --> 00:30:15,146
[Paddy] The FBI comes in.
554
00:30:15,230 --> 00:30:19,359
They identify that it is anthrax.
They close off the newsroom.
555
00:30:21,110 --> 00:30:24,739
Lachlan is managing it
under advisement from the FBI
556
00:30:24,823 --> 00:30:27,909
as a kind of workplace incident.
557
00:30:27,992 --> 00:30:30,703
[Jonathan] Ailes is losing his mind. He's…
558
00:30:30,787 --> 00:30:33,581
"We're under attack! We're under attack!"
He's freaking out.
559
00:30:33,665 --> 00:30:35,750
Ailes wants to go nuclear.
560
00:30:36,334 --> 00:30:38,461
[Paddy] He's thinking, "This is big news."
561
00:30:38,545 --> 00:30:42,799
And directly against the advice
of the FBI, he goes public.
562
00:30:43,466 --> 00:30:45,718
"Fox News is under attack."
563
00:30:45,802 --> 00:30:50,056
Anthrax spores mailed to this building
where Fox News Channel sits.
564
00:30:51,099 --> 00:30:53,935
[Paddy] Lachlan finds out about this,
565
00:30:54,018 --> 00:30:57,480
storms downstairs
to confront Ailes directly.
566
00:30:57,564 --> 00:30:58,815
"What are you doing?"
567
00:30:59,482 --> 00:31:02,527
[Sarah] Lachlan tries to calm Ailes down,
568
00:31:02,610 --> 00:31:04,904
but they end up verbally fighting
569
00:31:04,988 --> 00:31:08,491
in front of a huge number of people
in the office.
570
00:31:08,575 --> 00:31:11,077
This is not done to Roger Ailes.
571
00:31:11,661 --> 00:31:14,789
[Paddy] He was probably the only person
inside News Corporation
572
00:31:14,873 --> 00:31:16,749
that even Rupert was scared of.
573
00:31:17,709 --> 00:31:19,627
[Jim] Roger Ailes lets Rupert have it.
574
00:31:20,587 --> 00:31:23,590
"I am not gonna be lectured
by your children."
575
00:31:23,673 --> 00:31:25,466
He's furious.
576
00:31:26,009 --> 00:31:27,844
[Paddy] And in the end,
577
00:31:27,927 --> 00:31:31,222
Rupert backs Roger over Lachlan.
578
00:31:31,973 --> 00:31:35,768
[Jim] Ultimately, he'll give Ailes
a brand-new contract.
579
00:31:36,561 --> 00:31:40,106
So Rupert basically
sent the message to Lachlan
580
00:31:40,189 --> 00:31:42,901
that, "You're not to cross Ailes."
581
00:31:42,984 --> 00:31:44,527
"You're second fiddle here."
582
00:31:45,820 --> 00:31:50,617
[McKay] Lachlan is incredibly frustrated,
incredibly insulted by all of it.
583
00:31:51,576 --> 00:31:53,119
And also is starting to realize
584
00:31:53,202 --> 00:31:56,623
that even though
he's supposed to be the heir apparent,
585
00:31:56,706 --> 00:32:00,043
that his dad has no interest in retiring
anytime soon.
586
00:32:04,464 --> 00:32:06,466
[sprightly music playing]
587
00:32:07,717 --> 00:32:09,802
[reporter 15] How does
having a young family again
588
00:32:09,886 --> 00:32:11,846
affect your views on retirement?
589
00:32:12,347 --> 00:32:14,223
Your own retirement, that is?
590
00:32:14,307 --> 00:32:16,684
- Oh, it delays it forever. Hm.
- [laughter]
591
00:32:17,518 --> 00:32:20,188
[Sarah] At this point,
Rupert and his third wife,
592
00:32:20,271 --> 00:32:21,689
Wendi Deng Murdoch,
593
00:32:21,773 --> 00:32:24,400
have two daughters, Grace and Chloe.
594
00:32:25,860 --> 00:32:30,073
[Matthew] The other children
were never big fans of Wendi Deng.
595
00:32:30,156 --> 00:32:32,200
They were skeptical of her.
596
00:32:32,784 --> 00:32:33,618
Oh, come on.
597
00:32:33,701 --> 00:32:39,207
[Sarah] And James and Lachlan
saw Wendi as being tough on their dad.
598
00:32:39,707 --> 00:32:43,294
But Wendi wanted him to keep up with her.
599
00:32:43,378 --> 00:32:45,171
[exhaling deeply]
600
00:32:46,214 --> 00:32:49,550
Wendi has him under a sort of regimen.
601
00:32:50,551 --> 00:32:56,182
He is on a strict diet of green juice,
and he's not allowed to have dessert.
602
00:32:56,265 --> 00:32:58,184
[Jim] He undergoes this makeover.
603
00:32:58,267 --> 00:33:02,689
He dyes his hair red.
He starts wearing a leather jacket.
604
00:33:03,189 --> 00:33:07,026
Rupert goes from the Upper East Side,
established stodginess,
605
00:33:07,110 --> 00:33:08,820
to downtown hip.
606
00:33:09,320 --> 00:33:11,364
It's like the Fountain of Youth
for Rupert.
607
00:33:12,115 --> 00:33:15,576
And unlike Anna, who didn't want
anything to do with the business,
608
00:33:16,160 --> 00:33:19,288
Wendi wanted to know
what was going on in the company
609
00:33:19,372 --> 00:33:20,873
and was very interested in it.
610
00:33:21,457 --> 00:33:23,418
[Claire] Wendi went everywhere with him,
611
00:33:23,501 --> 00:33:27,338
and she's becoming
also an advisor to the company.
612
00:33:27,422 --> 00:33:29,465
[Sarah] She was very ambitious,
613
00:33:29,549 --> 00:33:33,302
and she had a lot of hopes
for her two daughters.
614
00:33:33,386 --> 00:33:36,305
She says that she wants her own children
615
00:33:36,389 --> 00:33:40,643
to have the same standing
as Rupert's other children.
616
00:33:40,727 --> 00:33:43,312
Where does that stand today, succession?
617
00:33:43,396 --> 00:33:46,190
The little girls are too young
to consider this at the moment.
618
00:33:46,274 --> 00:33:49,652
Do you consider them…
You have said, "They're all my children."
619
00:33:49,736 --> 00:33:52,238
They'll all get treated
equally financially.
620
00:33:52,321 --> 00:33:54,782
He goes on Charlie Rose,
621
00:33:54,866 --> 00:34:00,621
and that is how his own children learn
that he is slicing up the trust
622
00:34:00,705 --> 00:34:06,085
and giving his two youngest children
an equal stake in the inheritance.
623
00:34:06,169 --> 00:34:07,170
[cash register rings]
624
00:34:07,253 --> 00:34:10,798
[Paddy] Each of the four elder children
got paid $150 million
625
00:34:10,882 --> 00:34:15,219
for agreeing to include Grace and Chloe
on the Murdoch Family Trust.
626
00:34:16,012 --> 00:34:18,765
So Rupert's six kids
have an equal financial stake,
627
00:34:18,848 --> 00:34:21,976
but only the four eldest kids have a vote.
628
00:34:22,060 --> 00:34:24,228
[Charlie] You ran into some buzz saw
within the family
629
00:34:24,312 --> 00:34:25,563
because of that decision?
630
00:34:25,646 --> 00:34:27,648
We've resolved everything very happily.
631
00:34:28,149 --> 00:34:31,360
In fact, it sets off a bomb
with the other kids.
632
00:34:32,361 --> 00:34:35,364
But he doesn't apologize for this
633
00:34:35,448 --> 00:34:39,744
and runs roughshod over their feelings
and their desires.
634
00:34:40,244 --> 00:34:42,455
[Jim] We've seen this his entire life.
635
00:34:42,955 --> 00:34:44,791
When Rupert wants something,
636
00:34:45,416 --> 00:34:47,168
he will stop at nothing to get it.
637
00:34:49,378 --> 00:34:52,298
[McKay] Often, the Murdoch family
would come together
638
00:34:52,381 --> 00:34:53,800
for Christmas or Thanksgiving
639
00:34:53,883 --> 00:34:57,678
on Rupert's superyacht
called Morning Glory.
640
00:34:58,179 --> 00:34:59,847
[laid-back drumbeat playing]
641
00:35:00,431 --> 00:35:03,768
James had been married to his wife,
Kathryn, for a while.
642
00:35:04,519 --> 00:35:09,941
And Kathryn remembers
these legendary games of family Monopoly
643
00:35:10,024 --> 00:35:11,901
that the Murdochs would play.
644
00:35:12,485 --> 00:35:15,321
Once, she caught Rupert cheating…
645
00:35:15,404 --> 00:35:17,740
[chuckles] …and called him out on it,
646
00:35:17,824 --> 00:35:20,785
and he just kind of smirked and shrugged.
647
00:35:21,536 --> 00:35:26,249
Apparently, this was a common feature
of their family Monopoly games.
648
00:35:26,749 --> 00:35:29,836
And that sort of tells you everything
you need to know about him.
649
00:35:32,088 --> 00:35:35,800
[Jim] So, after the changes to the trust,
the family is divided.
650
00:35:36,425 --> 00:35:38,177
There's a lot of tension.
651
00:35:38,678 --> 00:35:43,182
And especially with Rupert's
favored successor, Lachlan.
652
00:35:44,308 --> 00:35:47,311
There are a lot of things
going on in Lachlan's head at that point.
653
00:35:48,062 --> 00:35:50,481
And he was still feuding with Roger Ailes.
654
00:35:51,941 --> 00:35:56,571
Ailes wants to get Fox Television
to back a new series
655
00:35:56,654 --> 00:36:00,032
called Crime Line,
hosted by Geraldo Rivera.
656
00:36:00,533 --> 00:36:04,453
Lachlan says it's too expensive,
and he blocks it.
657
00:36:04,954 --> 00:36:07,290
Roger goes directly to Rupert.
658
00:36:07,790 --> 00:36:11,711
Rupert reassures him
and says, "Don't worry about the boy."
659
00:36:11,794 --> 00:36:13,379
[tense music playing]
660
00:36:13,462 --> 00:36:16,174
{\an8}[Paddy] "Don't worry about the boy.
Do the show."
661
00:36:16,257 --> 00:36:19,802
[Sarah] It was a classic Murdoch moment.
Business over family.
662
00:36:20,803 --> 00:36:24,724
[Paddy] Lachlan was in the air on his way
back to America from Australia
663
00:36:24,807 --> 00:36:27,768
and found out about it when he landed.
664
00:36:27,852 --> 00:36:29,854
[music peaks, ends]
665
00:36:29,937 --> 00:36:31,272
He felt betrayed.
666
00:36:32,815 --> 00:36:36,444
Rupert had backed Roger over him again.
667
00:36:38,446 --> 00:36:43,618
[McKay] Lachlan tried to be the good son
and the loyal deputy.
668
00:36:44,118 --> 00:36:46,871
But every time he tried to make a decision
669
00:36:46,954 --> 00:36:48,956
that one of the other executives
didn't like,
670
00:36:49,040 --> 00:36:50,791
they would go over his head to Rupert.
671
00:36:50,875 --> 00:36:52,960
And Rupert would often overrule Lachlan.
672
00:36:54,086 --> 00:36:58,591
So I think, for Lachlan,
the proximity to his dad
673
00:36:58,674 --> 00:37:03,638
ended up being bad for his place
in the succession race.
674
00:37:03,721 --> 00:37:07,225
[reporter 16] Some surprise news out ofRupert Murdoch's News Corp overnight,
675
00:37:07,308 --> 00:37:10,519
with his eldest son, Lachlan,quitting his job as an executive.
676
00:37:10,603 --> 00:37:13,856
{\an8}[reporter 17] Lachlan Murdoch will remainon the News Corporation board,
677
00:37:13,940 --> 00:37:18,236
{\an8}but plans to return home to Australiaand pursue an independent career.
678
00:37:18,319 --> 00:37:23,574
{\an8}[McKay] So now Liz and Prudence were
out of the running to be heir apparent.
679
00:37:23,658 --> 00:37:28,371
And after Lachlan resigns in a huff,
moves back to Australia…
680
00:37:28,454 --> 00:37:30,456
[suspenseful music playing]
681
00:37:30,998 --> 00:37:34,168
…James is the only viable successor left.
682
00:37:35,086 --> 00:37:37,255
[bell chimes]
683
00:37:37,964 --> 00:37:40,132
[reporter 18] James Murdochhas been given a larger role
684
00:37:40,216 --> 00:37:43,386
overseeing all of News Corp'sEuropean and Asian operations.
685
00:37:43,469 --> 00:37:46,764
[reporter 19] 30-year-old James Murdochwas appointed the new CEO of Sky
686
00:37:46,847 --> 00:37:47,932
two weeks ago.
687
00:37:48,015 --> 00:37:50,351
Everyone wants to see
the value of the company grow.
688
00:37:50,434 --> 00:37:52,019
That's what we're gonna work to do.
689
00:37:52,770 --> 00:37:56,274
[McKay] James' promotion
was pretty controversial.
690
00:37:56,857 --> 00:38:02,154
There were howls of nepotism and outrage
that Rupert's relatively young son
691
00:38:02,238 --> 00:38:06,450
was going to be entrusted with
this crown jewel of British broadcasting,
692
00:38:08,286 --> 00:38:13,332
on top of the fact that this was the job
that Liz had been after.
693
00:38:15,626 --> 00:38:18,546
[Kara] I'll tell you that James…
I met with him in London.
694
00:38:18,629 --> 00:38:19,797
He was so arrogant.
695
00:38:20,298 --> 00:38:23,009
Master of the universe kind of vibe.
696
00:38:24,010 --> 00:38:27,013
[Sarah] At this point, even though
he hasn't gone to business school,
697
00:38:27,096 --> 00:38:29,682
he starts talking
like he went to business school.
698
00:38:29,765 --> 00:38:34,562
{\an8}The abolition of media boundaries
is a trumpet call to expansion,
699
00:38:34,645 --> 00:38:35,730
{\an8}to do more.
700
00:38:37,857 --> 00:38:42,028
[McKay] James starts to effect
a public persona
701
00:38:42,111 --> 00:38:46,032
that a lot of people around him
suspected was modeled after Rupert.
702
00:38:47,241 --> 00:38:50,453
[Sarah] He encourages all of his employees
to call themselves pirates.
703
00:38:50,536 --> 00:38:52,788
So in his London office,
704
00:38:52,872 --> 00:38:57,293
{\an8}he has a life-sized statue of Darth Vader
705
00:38:57,376 --> 00:39:00,671
and talks about them
running the Death Star.
706
00:39:01,422 --> 00:39:03,841
[David] He is a good ambassador
for his father,
707
00:39:03,924 --> 00:39:05,801
and he's also making the case that,
708
00:39:05,885 --> 00:39:07,970
"I can be the brash disruptor."
709
00:39:08,054 --> 00:39:12,266
"I can be the bold new force,
just as you once were."
710
00:39:13,434 --> 00:39:18,105
The irony is that the more
he seemed to act like Rupert,
711
00:39:18,189 --> 00:39:22,485
the more Rupert felt alienated by James.
712
00:39:23,277 --> 00:39:25,946
But also, we look forward
to the government's…
713
00:39:26,030 --> 00:39:29,533
[McKay] James begins to cultivate
his own inner circle.
714
00:39:29,617 --> 00:39:31,952
He starts dining with prime ministers
715
00:39:32,036 --> 00:39:35,206
and cozying up
to the liberal, respectable Establishment.
716
00:39:36,123 --> 00:39:39,877
He wanted to modernize
and run this company
717
00:39:39,960 --> 00:39:44,090
by what he considered to be
the best practices and standards.
718
00:39:45,341 --> 00:39:50,096
So he was going to fire
the more toxic executives and employees
719
00:39:50,179 --> 00:39:54,517
and emphasize human resources
and start to listen to the lawyers more.
720
00:39:55,559 --> 00:39:59,355
All of this
really rubbed Rupert the wrong way.
721
00:39:59,438 --> 00:40:05,319
He was really suspicious of James
trying to cozy up to the Establishment.
722
00:40:05,820 --> 00:40:10,991
It kind of makes Rupert regret
that he doesn't have Lachlan around.
723
00:40:14,036 --> 00:40:17,039
[Paul] After being forced out
by Roger Ailes,
724
00:40:17,123 --> 00:40:19,708
Lachlan is in Australia
with his tail between his legs.
725
00:40:21,877 --> 00:40:24,088
He was still
on the News Corporation board.
726
00:40:24,171 --> 00:40:26,799
The profit motive is not only fundamental…
727
00:40:26,882 --> 00:40:28,551
[Paddy] But he was doing his own thing,
728
00:40:28,634 --> 00:40:31,137
looking to make big investments
for the company.
729
00:40:32,096 --> 00:40:35,558
He was kind of humiliated,
but he still wants to emulate his father.
730
00:40:36,434 --> 00:40:39,353
[Paul] The question is,
how good a businessman is Lachlan?
731
00:40:40,354 --> 00:40:44,066
One of the things that's powering
newspapers at the time is classified ads,
732
00:40:44,150 --> 00:40:46,777
but it's quite clear
that the newspapers are fading
733
00:40:46,861 --> 00:40:49,780
and the Internet's gonna take
all the advertising revenue
734
00:40:49,864 --> 00:40:51,824
and real-estate ads in particular.
735
00:40:53,409 --> 00:40:56,745
So Lachlan says,
"We need to get a share of that."
736
00:40:57,455 --> 00:41:00,875
And so when realestate.com comes along,
he buys it.
737
00:41:01,375 --> 00:41:06,380
This is clearly a great deal, and it's
a great deal for everyone involved.
738
00:41:06,464 --> 00:41:07,590
It's win-win-win.
739
00:41:08,716 --> 00:41:11,886
[Paul] The decision to invest
in realestate.com.au
740
00:41:11,969 --> 00:41:14,638
makes the family billions of dollars,
741
00:41:14,722 --> 00:41:19,560
and it becomes the most valuable property
in the News Corp business in Australia.
742
00:41:20,227 --> 00:41:23,481
I think they only paid $10 million.
It's now worth more than a billion.
743
00:41:24,356 --> 00:41:26,025
[McKay] By taking himself
out of the running
744
00:41:26,108 --> 00:41:29,028
and moving back to Australia
to set up his own shop
745
00:41:29,111 --> 00:41:31,906
and start building
his own little media empire,
746
00:41:32,698 --> 00:41:38,204
Lachlan becomes more desirable
to his father as a successor.
747
00:41:38,287 --> 00:41:41,373
I think that his dad
kind of wants what he can't have.
748
00:41:42,333 --> 00:41:45,127
Mr. Murdoch, the market's wondering
about your succession.
749
00:41:45,211 --> 00:41:48,005
You said this week that,
virtually, you'll die in the saddle,
750
00:41:48,088 --> 00:41:49,381
but you have to think of it.
751
00:41:50,382 --> 00:41:54,094
{\an8}It would be very nice.
It's every father's, uh, natural desire
752
00:41:54,178 --> 00:41:57,014
{\an8}to see, I think, his children follow him
if they're up to it.
753
00:41:57,097 --> 00:42:00,184
{\an8}And we'll have to see
how they, uh, work it out.
754
00:42:00,267 --> 00:42:02,311
{\an8}I hope not fight it out, but, uh…
755
00:42:02,394 --> 00:42:04,855
{\an8}I hope to be around for a few more years.
756
00:42:05,397 --> 00:42:07,608
[somber music playing]
757
00:42:07,691 --> 00:42:10,694
[Jonathan] Rupert is not a person
who likes to talk about his death.
758
00:42:12,655 --> 00:42:15,407
[Sarah] But now he's 94 years old,
759
00:42:15,491 --> 00:42:20,204
and he's clearly preparing
for one day when he eventually passes.
760
00:42:21,288 --> 00:42:22,289
[Jim] At this point,
761
00:42:22,373 --> 00:42:27,628
Liz, James, and Prue share concerns
about the direction of the company.
762
00:42:27,711 --> 00:42:29,547
[man 7] Good morning, Mr. Murdoch.
763
00:42:30,130 --> 00:42:33,092
[Jim] Rupert sees Fox as his legacy.
764
00:42:33,926 --> 00:42:37,054
And he's convinced
that Lachlan is the only one
765
00:42:37,137 --> 00:42:39,265
that will carry on what he built.
766
00:42:39,848 --> 00:42:42,893
At the same time,
Lachlan's looking over his shoulder,
767
00:42:42,977 --> 00:42:45,271
worried that after his father dies,
768
00:42:45,354 --> 00:42:48,023
there could be a coup,
and he could be pushed aside.
769
00:42:48,732 --> 00:42:52,486
So Rupert and Lachlan start
looking into the Murdoch Family Trust.
770
00:42:53,320 --> 00:42:56,865
If Rupert doesn't get the trust
built around Lachlan,
771
00:42:56,949 --> 00:42:57,783
it's over.
772
00:42:58,951 --> 00:43:00,452
They want to figure out,
773
00:43:01,453 --> 00:43:03,872
is there a way
to poke a hole in this trust?
774
00:43:04,623 --> 00:43:08,252
And what they find
is there actually is a way,
775
00:43:08,335 --> 00:43:12,047
as long as it was solely
for the benefit of all of the heirs.
776
00:43:12,548 --> 00:43:17,720
The simplest way to understand it
is the trust had eight votes.
777
00:43:18,220 --> 00:43:21,932
Four controlled by Rupert,
one controlled by each child.
778
00:43:22,016 --> 00:43:23,726
{\an8}So Rupert could never be outvoted,
779
00:43:23,809 --> 00:43:27,229
{\an8}but no child could be in control
when Rupert died.
780
00:43:27,896 --> 00:43:30,482
{\an8}So Rupert and Lachlan want to create
781
00:43:30,566 --> 00:43:33,944
{\an8}two new entities
that will control the trust.
782
00:43:34,695 --> 00:43:39,450
{\an8}And those entities will be able
to override the one that exists currently.
783
00:43:40,200 --> 00:43:43,287
{\an8}They're keeping it secret
from all the other children,
784
00:43:43,787 --> 00:43:47,207
{\an8}and they're going to do it
under a crazy codename,
785
00:43:47,291 --> 00:43:49,543
"Project Family Harmony."
786
00:43:49,627 --> 00:43:51,420
You have named your plan
787
00:43:51,503 --> 00:43:55,507
to take the voting rights
of three children away from them
788
00:43:55,591 --> 00:43:57,217
Project Family Harmony.
789
00:43:57,301 --> 00:43:59,094
I mean, just mind blowing.
790
00:43:59,178 --> 00:44:01,180
[tense music playing]
791
00:44:03,223 --> 00:44:05,684
[McKay] There was a period of a few weeks,
792
00:44:05,768 --> 00:44:10,522
and then James got an invitation
to join a Zoom call
793
00:44:10,606 --> 00:44:13,233
for a special meeting on the family trust.
794
00:44:14,360 --> 00:44:17,363
He did not know
what this meeting would be about.
795
00:44:17,446 --> 00:44:22,451
He had no reason to believe there was
any need to meet about the family trust.
796
00:44:23,202 --> 00:44:25,996
James was completely blindsided by this.
797
00:44:27,164 --> 00:44:31,669
Then his managing director
received an agenda.
798
00:44:32,169 --> 00:44:36,840
He called James and said,
"You need to look at this."
799
00:44:37,633 --> 00:44:40,260
"Your dad is making a move
for the entire empire."
800
00:44:40,344 --> 00:44:41,637
[computer bleeps]
801
00:44:41,720 --> 00:44:46,141
About a week after that,
the Murdoch family get on the Zoom.
802
00:44:46,642 --> 00:44:48,060
[computer bleeps repeatedly]
803
00:44:48,143 --> 00:44:50,521
[Jim] There's a lot of tension
in the room.
804
00:44:50,604 --> 00:44:54,233
[McKay] You have James
and his two sisters, Prudence and Liz,
805
00:44:55,109 --> 00:44:57,403
and his older brother, Lachlan.
806
00:44:58,237 --> 00:44:59,863
And you have Rupert
807
00:45:00,364 --> 00:45:03,242
surrounded by a hundred lawyers.
808
00:45:03,867 --> 00:45:07,204
He starts just kind of robotically
reading from this script.
809
00:45:07,287 --> 00:45:10,374
[Jonathan] He tells them,
"I'm going to change the family trust."
810
00:45:10,457 --> 00:45:14,586
[McKay] "You'll still have your shares,
but you'll have no voting power."
811
00:45:15,087 --> 00:45:17,715
{\an8}"You'll have no ability
to make decisions."
812
00:45:17,798 --> 00:45:19,675
[music intensifies]
813
00:45:21,635 --> 00:45:24,346
{\an8}"It's just gonna be Lachlan
who has control."
814
00:45:25,764 --> 00:45:27,641
So the meeting does not go
particularly well.
815
00:45:27,725 --> 00:45:29,893
There's shouting. There's yelling.
816
00:45:29,977 --> 00:45:31,311
It became very emotional.
817
00:45:32,646 --> 00:45:35,441
[Jonathan] James can't believe
his father is saying this.
818
00:45:35,524 --> 00:45:39,778
[McKay] That he was
willing to do something so provocative
819
00:45:39,862 --> 00:45:41,739
and so harmful.
820
00:45:41,822 --> 00:45:44,366
This is what had become of his family.
821
00:45:45,325 --> 00:45:47,619
[Jim] Rupert says, "You would come in."
822
00:45:47,703 --> 00:45:50,998
"You would change this company.
You would take it to the left."
823
00:45:51,081 --> 00:45:53,292
"That's the golden goose
you're playing with."
824
00:45:53,375 --> 00:45:55,544
"You need to go along with this."
825
00:45:55,627 --> 00:45:57,880
"It's good for all of you
in spite of yourselves."
826
00:45:58,464 --> 00:46:01,717
What's notable is that Lachlan is silent
827
00:46:01,800 --> 00:46:04,136
when he had helped
architect the whole thing.
828
00:46:05,220 --> 00:46:07,431
{\an8}Liz can't contain herself.
829
00:46:07,514 --> 00:46:10,851
She says, "How are you gonna get consensus
with a gun to our heads?"
830
00:46:10,934 --> 00:46:12,060
It was brutal.
831
00:46:12,144 --> 00:46:13,896
[computer chimes]
832
00:46:13,979 --> 00:46:15,773
It's total war.
833
00:46:23,071 --> 00:46:25,073
[instrumental music playing]
69047
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