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Jim Rutenberg and I
started writing about the Murdochs
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more than 20 years ago.
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And, you know,
I would say, with some humility,
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that I think we have, like,
gotten to know the family pretty well.
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00:00:33,283 --> 00:00:36,119
One day, out of the blue,
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we get contacted by this mystery person,
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saying "You're gonna
find this pretty interesting,
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given what you do and who you cover."
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So we agreed to meet.
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All I can say is the way
that we had to get that first document
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was pretty involved.
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Nothing was gonna be given
to us electronically
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'cause it's all so sensitive.
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00:01:01,019 --> 00:01:06,107
So that meant meeting
in secret locations, passing envelopes.
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00:01:07,025 --> 00:01:11,696
Until finally, we got our hands
on these secret documents.
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We couldn't believe it.
It was jaw-dropping.
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This was thousands of pages.
E-mails, text messages.
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Every page was unbelievable.
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"You're being lobbied by James,
and you're going to bend to his will."
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To this, Liz responds,
"Do you think I'm a fucking moron?"
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The family was airing decades
of dirty laundry in a Nevada court.
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That's when it dawned on us,
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that, oh my God, the Murdoch family is
in a massive lawsuit against each other.
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According to the New York Times,
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93-year-old Rupert Murdoch
allegedly surprised three of his children
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by filing to change an irrevocable trust.
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-It reads like Succession.
-A legal battle.
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At issue, who controls
his right-leaning media empire.
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Joining me,
one of the reporters who broke this story.
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All right, Jim, why are the three siblings
going up against Lachlan and Rupert?
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I just would say
it's really why is Rupert, uh,
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going against the three siblings?
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After our story ran,
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everyone knew
the family was suing each other
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00:02:28,356 --> 00:02:32,735
over Rupert's desire to lock in
Lachlan's control over the company.
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Morning. Anybody have
any comment this morning?
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But then there was
no more information available.
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The case was sealed.
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Any comment?
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No one was really allowed
to talk about it.
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00:02:45,915 --> 00:02:48,918
And then we learned
that all the Murdoch family members
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were going to actually testify
against each other.
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The Murdochs were going to war
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in a pitched court fight
over the future of the entire empire.
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00:03:13,651 --> 00:03:16,070
In early 2024,
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before the New York Times piece came out,
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I approached James really just on a hunch
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that he would have
an interesting story to tell.
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He couldn't quite believe
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that his father was willing
to divide the family, maybe permanently.
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00:03:36,174 --> 00:03:41,763
So when James was deposed
as part of the preparation for the trial,
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he was really ready to go to battle.
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00:03:45,266 --> 00:03:48,478
James had spent 20 years
as a senior executive.
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He had been in depositions
where you have to be really aggressive.
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And so he decided that he was
going to approach the whole thing
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in a spirit of corporate combat.
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00:04:01,491 --> 00:04:05,828
But the deposition was much more difficult
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for James emotionally
than I think he was prepared for.
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00:04:10,083 --> 00:04:12,794
When he walked into the boardroom,
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00:04:12,877 --> 00:04:18,258
James saw that it wasn't
just his father's lawyer and his lawyer,
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but sitting in this office
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was his father himself.
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James didn't know
that Rupert would be there.
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This was the first time he had seen Rupert
in years. They were fully estranged.
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His dad just sat down across from him.
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They didn't talk to each other.
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And for the next several hours,
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Rupert's lawyer just grilled James with
incredibly witheringly personal questions.
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Questions like,
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"Have you ever accomplished anything
on your own?"
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00:04:58,089 --> 00:05:01,175
Or, "Why don't you ever
take responsibility
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00:05:01,259 --> 00:05:03,469
for the things
that go wrong in your life?"
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00:05:04,470 --> 00:05:09,100
Or, "Why were you too busy
to call your dad on his 90th birthday?"
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00:05:10,351 --> 00:05:15,106
James told me that he tried
to concentrate on the lawyer's questions,
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00:05:15,189 --> 00:05:20,570
but he just kept looking over at his dad,
who was staring inscrutably at his son.
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And every once in a while,
Rupert would pick up his phone
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and tap something out.
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And eventually, James realized
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that these super aggressive,
mean-spirited, personal questions
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were actually coming from his father.
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I remember talking to James weeks later,
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and he was still sort of reeling
from the experience.
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He couldn't quite believe
what had happened.
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He was constantly analyzing it
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and trying to make sense
about why his dad did what he did.
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The question that kept coming back to him
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00:06:04,530 --> 00:06:06,949
was, how did we let it come to this?
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If you look at the succession in 2011,
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James is in the box seat.
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00:06:19,754 --> 00:06:23,049
But Binocular's been
the challenger as they turn for home.
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00:06:23,132 --> 00:06:24,884
Binocular now strikes the…
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Elisabeth walked away,
and Lachlan's back in Australia.
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00:06:29,180 --> 00:06:32,517
…Binocular, who had this
patchy season, win the Champion Hurdle.
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James is running News Corp in Britain,
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and their tabloids
were making an absolute fortune.
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He sits atop what's now called News UK,
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their publishing empire in Great Britain,
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the four newspapers that they own.
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Most importantly, the News of the World.
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They have a villainous reputation
in Britain
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for down-market tabloids
and conservative politics.
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One of Rupert's editors
once gave a staff talk.
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He said, "Imagine the old man
down the end of the bar."
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00:07:06,843 --> 00:07:10,054
"Doesn't like immigrants.
He doesn't like poofs."
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00:07:10,138 --> 00:07:12,807
"He thinks that there's
too much smut on TV."
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"But he wants to see tits
in the newspaper."
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"That's who we're writing for."
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You're feasting on the missteps
and embarrassments of celebrities.
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That's a News of the World exclusive.
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If you were a royal,
if you were a politician,
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if you were some fancy actor,
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a sports star or a singer,
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you were fair game.
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The News of the World
is the jewel of Murdoch's empire.
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Enormously profitable.
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Britain's biggest newspaper
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with an unrivaled reputation
for journalistic scoops.
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I went to work for the News of the World
because I liked its reputation.
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It was like the Death Star.
The dark heart of the evil empire.
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And that emanated
from the characters who ran it.
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00:08:03,399 --> 00:08:05,860
Piers Morgan, who you might've heard of,
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00:08:05,943 --> 00:08:07,153
was my first boss.
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00:08:07,236 --> 00:08:10,323
One day, I turned up
with a load of stolen photographs.
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Pictures of Naomi Campbell,
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00:08:14,785 --> 00:08:16,287
Eva Herzigová,
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Carla Bruni,
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all of them topless.
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00:08:21,667 --> 00:08:23,503
I gave them to the picture editor,
and he said,
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00:08:23,586 --> 00:08:26,005
"You can't use these.
They're stolen pictures."
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00:08:26,088 --> 00:08:29,509
And Piers went, "Bollocks to it.
Stick it in. Good work."
131
00:08:31,469 --> 00:08:33,137
And on the basis of that,
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I got my staff job at the News
for stealing, basically.
133
00:08:41,604 --> 00:08:45,066
One thing which is interesting about
Rupert Murdoch and his corporate culture
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00:08:45,149 --> 00:08:48,778
is a sense that anything can be achieved
by a force of will.
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00:08:49,695 --> 00:08:53,533
This is a really important characteristic
of the people who worked for him.
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00:08:54,033 --> 00:08:56,911
He needed people
that would do whatever it took
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to continue his way of doing business.
138
00:09:00,831 --> 00:09:04,293
And at the News of the World,
that was Rebekah Brooks.
139
00:09:05,086 --> 00:09:07,713
Rebekah Brooks was the features editor.
140
00:09:07,797 --> 00:09:10,675
Used to work as a secretary
in the magazine.
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00:09:10,758 --> 00:09:15,972
And Murdoch made her editor
of the biggest newspaper in the world.
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00:09:17,348 --> 00:09:22,186
Rebekah Brooks was the daughter
that Rupert never had
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because she was unfailingly loyal to him.
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00:09:26,357 --> 00:09:29,569
Elisabeth Murdoch hated her,
but Murdoch loved her.
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00:09:30,069 --> 00:09:35,992
Rebekah Brooks is an excellent example
of a senior Rupert Murdoch executive.
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Moves at 800 miles an hour.
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Knows all about newspapers,
makes quick decisions, is resourceful.
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Quite hot. Nice arse.
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She'd walk through with bits of paper,
just throwing them behind her,
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00:09:50,381 --> 00:09:52,008
"This is shit, this is shit."
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And her secretary's scurrying behind her,
picking up the bits of paper.
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There was no moaning or excuses.
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00:10:00,474 --> 00:10:02,893
It was, "Get the story at any cost."
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00:10:05,354 --> 00:10:06,939
Throughout the 2000s,
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the News of the World
was going gangbusters.
156
00:10:09,275 --> 00:10:15,656
They were getting great scoops about
celebrities, politicians, football stars.
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00:10:15,740 --> 00:10:20,369
I mean, every entity in the UK
was trying to get to the bottom of,
158
00:10:21,120 --> 00:10:22,830
how are they doing that?
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00:10:25,374 --> 00:10:28,377
The Murdoch organization
at the News of the World
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00:10:28,461 --> 00:10:30,755
was an organized crime group,
by any definition.
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00:10:31,797 --> 00:10:34,884
Scores of people were involved.
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00:10:34,967 --> 00:10:38,721
Journalists and private detectives
trading unlawful information.
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00:10:39,347 --> 00:10:42,475
They were spending
millions of pounds a year on gathering it.
164
00:10:43,100 --> 00:10:44,977
And it went on all over the world.
165
00:10:45,686 --> 00:10:47,938
It was called the Dark Arts.
166
00:10:48,814 --> 00:10:50,483
Where have you gone, Kate Hudson?
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00:10:50,566 --> 00:10:54,111
Dark Arts are
hiring private investigators,
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00:10:54,195 --> 00:10:56,322
sitting in surveillance vans.
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00:10:56,405 --> 00:10:58,366
Getting phone bills, medical records,
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bank records, flight details.
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00:11:02,244 --> 00:11:04,080
Paris! Paris!
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00:11:04,664 --> 00:11:07,667
And what that means is
you can get to the story first.
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00:11:08,501 --> 00:11:11,087
It gave Murdoch the competitive advantage
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00:11:11,587 --> 00:11:13,964
against other newspapers
on exclusive stories.
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00:11:15,341 --> 00:11:16,550
Hello, dear.
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00:11:19,804 --> 00:11:22,682
I had a contact
who'd give me stories on Prince Charles,
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00:11:22,765 --> 00:11:25,309
who was having an affair
with Camilla Parker Bowles.
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00:11:25,393 --> 00:11:26,435
She's the queen now.
179
00:11:26,519 --> 00:11:28,312
So I knew her inside movements.
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00:11:28,396 --> 00:11:31,315
I'll wield my bullwhip at you in a minute.
181
00:11:34,151 --> 00:11:36,570
I spent the last month of Diana's life
182
00:11:36,654 --> 00:11:38,406
just chasing her around the world.
183
00:11:38,906 --> 00:11:40,783
I can see why Harry hates us.
184
00:11:41,283 --> 00:11:42,243
Sorry, Harry.
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00:11:45,788 --> 00:11:46,956
Wherever you went,
186
00:11:47,456 --> 00:11:51,794
bang, out came a pap, and you thought,
"How do they know where I am?"
187
00:11:53,421 --> 00:11:58,426
I got sent to LA to follow Hugh Grant,
crawling for Black hookers.
188
00:12:00,261 --> 00:12:03,514
So what did Murdoch want us to do?
189
00:12:03,597 --> 00:12:07,476
Find the girl, give her $250,000
190
00:12:09,270 --> 00:12:14,066
to tell us all about what Hugh Grant
asked you to do in his car.
191
00:12:14,567 --> 00:12:15,943
All the dirty details.
192
00:12:18,237 --> 00:12:20,448
I thought,
"This is part of my punishment."
193
00:12:21,365 --> 00:12:24,952
But, uh, life at that time
was extremely difficult,
194
00:12:25,035 --> 00:12:28,289
because their power
grew and grew and grew.
195
00:12:29,206 --> 00:12:32,918
I mean, you know, you could do anything
as long as you didn't get caught.
196
00:12:33,961 --> 00:12:37,590
But it's important
that the wall is maintained,
197
00:12:37,673 --> 00:12:41,010
so the Murdochs can't see
how the sausage is made,
198
00:12:41,093 --> 00:12:43,512
even though they know how it's done.
199
00:12:43,596 --> 00:12:46,807
So there's plausible deniability
at every level.
200
00:12:46,891 --> 00:12:50,019
That's really important
in a Murdoch organization.
201
00:12:52,188 --> 00:12:55,357
Technically, James is
in charge of all of Murdoch's papers
202
00:12:55,441 --> 00:12:56,817
in Britain at the time.
203
00:12:56,901 --> 00:13:00,070
But he doesn't really care
about newspapers that much.
204
00:13:00,154 --> 00:13:01,947
He was very much interested in tech.
205
00:13:02,656 --> 00:13:05,034
And he was making investments
all over the place.
206
00:13:05,659 --> 00:13:07,453
I think he was trying to say, you know,
207
00:13:07,536 --> 00:13:09,705
"This is not my daddy's
old media company."
208
00:13:12,875 --> 00:13:13,959
BSkyB,
209
00:13:14,043 --> 00:13:17,129
Britain's most lucrative
satellite TV provider.
210
00:13:17,213 --> 00:13:22,510
News Corp is trying to buy
the 60% of BSkyB it doesn't already own.
211
00:13:23,511 --> 00:13:24,720
At that point,
212
00:13:24,804 --> 00:13:27,890
James is right on the cusp
of getting this deal with BSkyB,
213
00:13:27,973 --> 00:13:30,184
which would make
a huge amount of money for them.
214
00:13:30,684 --> 00:13:34,438
BSkyB is an incredibly powerful
satellite television operation.
215
00:13:35,147 --> 00:13:38,025
And it will give the Murdochs a launch pad
216
00:13:38,108 --> 00:13:42,279
to control the media environment
around the world.
217
00:13:42,363 --> 00:13:46,242
We're about to complete the merger
of the three European Sky businesses,
218
00:13:46,325 --> 00:13:49,745
which, uh, you know,
creates something really new.
219
00:13:49,829 --> 00:13:53,165
A real 21st century
digital television company.
220
00:13:53,249 --> 00:13:57,378
James sees that if he's able
to bring BSkyB into the fold.
221
00:13:57,461 --> 00:13:59,755
That will be his crowning achievement.
222
00:14:00,589 --> 00:14:05,427
But in order to be approved, you need
to be, quote unquote, "fit and proper,"
223
00:14:05,511 --> 00:14:08,973
which means your newspapers
are not doing things
224
00:14:09,056 --> 00:14:11,058
that are illegal or untoward.
225
00:14:11,642 --> 00:14:14,854
This requires an enormous amount
of review by the British government.
226
00:14:16,063 --> 00:14:18,732
And it's James's job to get it across.
227
00:14:20,025 --> 00:14:24,572
James has managed to befriend
and ingratiate himself with Jeremy Hunt,
228
00:14:24,655 --> 00:14:26,073
a key Cabinet figure.
229
00:14:26,949 --> 00:14:30,244
And Rebekah Brooks
is a close friend and confidante
230
00:14:30,327 --> 00:14:32,746
of the new prime minister, David Cameron.
231
00:14:33,956 --> 00:14:38,460
So everything seems aligned perfectly
to go James's way
232
00:14:40,421 --> 00:14:45,175
when a headline erupts
in early July of 2011.
233
00:14:48,137 --> 00:14:50,890
-Heinous, despicable.
-Shock and anger.
234
00:14:50,973 --> 00:14:53,058
Going too far to get a story.
235
00:14:53,142 --> 00:14:55,352
Allegations against
the News of the World.
236
00:14:55,436 --> 00:14:56,812
Hacked into…
237
00:14:56,896 --> 00:14:58,856
…families of murder victims.
238
00:14:58,939 --> 00:15:01,275
The murdered schoolgirl Milly Dowler.
239
00:15:02,818 --> 00:15:08,532
Milly Dowler was a schoolgirl
who was abducted and murdered.
240
00:15:09,533 --> 00:15:10,993
And before she was…
241
00:15:11,493 --> 00:15:13,037
Before her body was found,
242
00:15:13,120 --> 00:15:15,998
the News of the World
were hacking her phone.
243
00:15:20,961 --> 00:15:25,633
The way to hack someone's phone is
to make sure they're asleep or engaged.
244
00:15:25,716 --> 00:15:28,093
You just ring 'em up on one phone,
they answer it,
245
00:15:28,177 --> 00:15:31,180
then dial again on the other one
and get through to their messages.
246
00:15:31,263 --> 00:15:32,932
Enter your security code.
247
00:15:33,015 --> 00:15:35,476
And the private investigator
has given you the code,
248
00:15:35,559 --> 00:15:38,145
so you put the code in
and you listen to their messages.
249
00:15:38,228 --> 00:15:40,272
When the voicemail became full,
250
00:15:40,356 --> 00:15:42,983
messages were deleted
so that more could be left.
251
00:15:43,067 --> 00:15:46,070
A private detective
working for the News of the World
252
00:15:46,153 --> 00:15:47,863
deleted some of those messages,
253
00:15:47,947 --> 00:15:52,117
giving her family the false hope
that she might still be alive.
254
00:15:52,201 --> 00:15:54,244
-I rang her phone.
-Yes.
255
00:15:54,328 --> 00:15:58,332
And it clicked through onto her voicemail,
so I heard her voice.
256
00:15:58,415 --> 00:16:01,126
-Yes.
-And I was… It was just like… I jumped.
257
00:16:01,210 --> 00:16:03,754
"She's picked up her voicemails, Bob!
She's alive."
258
00:16:03,837 --> 00:16:06,298
They made the parents
think the girl was alive.
259
00:16:06,382 --> 00:16:08,092
It just was… who… who would do that?
260
00:16:10,094 --> 00:16:12,388
That's when I started
calling him Uncle Satan.
261
00:16:12,471 --> 00:16:16,141
Boycott Murdoch! Boycott Murdoch!
262
00:16:16,225 --> 00:16:20,104
There had been stories
about celebrities getting hacked.
263
00:16:20,187 --> 00:16:23,649
But there's not as much sympathy
264
00:16:23,732 --> 00:16:26,694
for the victims of those stories
because these are wealthy people.
265
00:16:27,528 --> 00:16:29,822
But when it was a schoolgirl,
266
00:16:30,322 --> 00:16:33,075
people realized this stuff could happen
to anybody.
267
00:16:33,158 --> 00:16:35,494
This was fiendishly vile.
268
00:16:35,577 --> 00:16:39,456
Money, power, lies by the hour
Rupert Murdoch…
269
00:16:39,540 --> 00:16:41,667
We were reviled by
270
00:16:42,543 --> 00:16:45,546
everybody. My wife
fucking hated me for my job.
271
00:16:45,629 --> 00:16:48,882
"You're a fucking lowlife!"
This is my wife, you know.
272
00:16:48,966 --> 00:16:50,801
Boycott Murdoch! Boycott Murdoch!
273
00:16:50,884 --> 00:16:53,262
A cover-up started to take place.
274
00:16:53,345 --> 00:16:56,306
Deletions of emails
and destruction of evidence.
275
00:16:58,142 --> 00:17:01,562
The private eye I used to use,
he burned all his records quickly.
276
00:17:02,730 --> 00:17:05,816
This developed
into a raging, roiling scandal.
277
00:17:05,899 --> 00:17:08,527
It affected
the law enforcement establishment,
278
00:17:08,610 --> 00:17:10,571
top officials at Scotland Yard,
279
00:17:10,654 --> 00:17:13,490
who had essentially
looked the other way for years,
280
00:17:13,574 --> 00:17:18,412
and politicians, who appeared compromised
by their ties to the Murdochs.
281
00:17:18,912 --> 00:17:22,791
What I've read in the papers
is quite, quite shocking.
282
00:17:22,875 --> 00:17:26,545
Britain's prime minister
vowing no stone will be left unturned.
283
00:17:27,129 --> 00:17:29,590
James Murdoch
and other News Limited executives
284
00:17:29,673 --> 00:17:32,426
could face charges
over a suspected cover-up
285
00:17:32,509 --> 00:17:37,389
with reports millions of emails
were deleted from an internal archive.
286
00:17:37,890 --> 00:17:42,561
According to James,
he immediately ordered the lawyers
287
00:17:42,644 --> 00:17:45,564
to turn over everything they had
to the police,
288
00:17:45,647 --> 00:17:48,233
to start cooperating
with an investigation,
289
00:17:48,859 --> 00:17:51,445
over Rupert's objections.
290
00:17:54,114 --> 00:17:56,825
Detectives made
their first arrest and seized evidence.
291
00:17:56,909 --> 00:17:58,994
Thousands of pages of notes were seized.
292
00:17:59,078 --> 00:18:00,704
More alleged crimes.
293
00:18:00,788 --> 00:18:05,084
Rampant computer hacking,
stolen bank data, even break-ins.
294
00:18:06,043 --> 00:18:08,128
This was not a one-off thing.
295
00:18:08,212 --> 00:18:11,507
Journalists at News of the World had been
working with private investigators
296
00:18:11,590 --> 00:18:14,384
to hack voicemails for years.
297
00:18:15,010 --> 00:18:16,887
They'd hacked the voicemails
298
00:18:16,970 --> 00:18:21,767
of parents of a child
who was murdered by a pedophile,
299
00:18:21,850 --> 00:18:27,189
and troops who were killed in combat
in Afghanistan and Iraq.
300
00:18:27,731 --> 00:18:30,692
Rupert Murdoch's got to go to, say hey!
301
00:18:33,278 --> 00:18:35,155
This was emotional stuff,
302
00:18:35,239 --> 00:18:38,951
and Rupert was very much painted
as the villain here.
303
00:18:39,034 --> 00:18:42,538
Boycott Murdoch! Boycott Murdoch!
304
00:18:42,621 --> 00:18:46,083
One thing we understand about Rupert
with his executives is,
305
00:18:46,708 --> 00:18:49,461
if you win, you can do whatever you want.
306
00:18:49,962 --> 00:18:51,213
Just keep winning.
307
00:18:51,839 --> 00:18:56,802
But hacking showed just how far
his executives were willing to take that.
308
00:18:57,302 --> 00:18:59,388
This was a crossed line.
309
00:19:00,889 --> 00:19:03,267
Here was pretty good evidence
310
00:19:03,350 --> 00:19:07,187
that they were leveraging these papers
to push agendas
311
00:19:07,271 --> 00:19:12,067
and to blackmail people
and to invade people's privacy.
312
00:19:12,151 --> 00:19:15,904
All the stuff that you kind of suspected
but didn't know,
313
00:19:15,988 --> 00:19:17,573
it was all out there and laid bare.
314
00:19:18,532 --> 00:19:20,242
I'm not making any comments.
315
00:19:21,285 --> 00:19:26,707
Stock in parent company
News Corp has dropped nearly 15%.
316
00:19:26,790 --> 00:19:28,500
Advertisers leaving in droves.
317
00:19:28,584 --> 00:19:30,919
The prime minister, David Cameron,
318
00:19:31,003 --> 00:19:34,798
joined opposition politicians
in parliament to call on Rupert Murdoch…
319
00:19:34,882 --> 00:19:37,801
The prime minister
has promised a public inquiry.
320
00:19:37,885 --> 00:19:42,014
The people involved,
however high or low they go,
321
00:19:42,097 --> 00:19:44,016
they must not only be brought to justice,
322
00:19:44,099 --> 00:19:49,062
they must also have no future role
in running a media company in our country.
323
00:19:49,813 --> 00:19:55,194
Three principal executives
are called to testify before parliament.
324
00:19:56,028 --> 00:19:58,238
I think they are in a lot of trouble.
325
00:19:58,322 --> 00:20:02,075
This could be the moment
his newspaper power crumbles.
326
00:20:02,743 --> 00:20:05,287
The question was,
how high up was this scandal gonna go?
327
00:20:05,370 --> 00:20:07,539
Would there be a Murdoch scalp?
328
00:20:13,754 --> 00:20:15,339
Mr. Chairman, thank you very much.
329
00:20:15,422 --> 00:20:19,176
First of all, I would like to say as well
just how sorry I am
330
00:20:19,259 --> 00:20:22,095
and how sorry we are, uh,
331
00:20:22,179 --> 00:20:26,183
to particularly the victims
of illegal voicemail interceptions
332
00:20:26,266 --> 00:20:28,060
and to their families.
333
00:20:28,143 --> 00:20:31,813
Before you get to that,
I would just like to say one sentence.
334
00:20:31,897 --> 00:20:35,317
-This is the most humble day of my life.
-Thank you.
335
00:20:35,943 --> 00:20:40,989
So, in order to claw out
from under this Milly Dowler scandal,
336
00:20:41,073 --> 00:20:42,741
he gives an apology.
337
00:20:42,824 --> 00:20:47,412
Rupert clearly knows that
that's the posture that he has to strike.
338
00:20:47,496 --> 00:20:51,208
At what point did you find out criminality
was endemic at News of the World?
339
00:20:56,171 --> 00:20:57,881
"Endemic" is a very hard…
340
00:20:58,423 --> 00:20:59,925
a very wide-ranging word.
341
00:21:00,592 --> 00:21:05,138
I was absolutely shocked,
appalled, and ashamed
342
00:21:05,222 --> 00:21:08,350
when I heard about
the Milly Dowler case only
343
00:21:09,643 --> 00:21:10,477
two weeks ago.
344
00:21:11,979 --> 00:21:15,023
-He mumbled.
-I don't know anything about that.
345
00:21:15,107 --> 00:21:18,443
He seemed like a confused, older man.
346
00:21:19,111 --> 00:21:19,987
I forget the date.
347
00:21:20,070 --> 00:21:22,239
This was not the fearsome media mogul
348
00:21:22,322 --> 00:21:25,075
that people expected
that they were going to see.
349
00:21:25,158 --> 00:21:29,496
And it was a very effective performance,
whether it was real or not.
350
00:21:29,579 --> 00:21:32,332
I don't remember meeting him.
I might have shaken hands,
351
00:21:32,416 --> 00:21:34,251
but I don't have any memory.
352
00:21:34,334 --> 00:21:35,460
I just don't remember.
353
00:21:36,253 --> 00:21:38,255
I literally turned to someone, I was like,
354
00:21:38,338 --> 00:21:42,843
"He's pretending he's addled?
Are you kidding me? This guy is a viper."
355
00:21:43,552 --> 00:21:47,180
Rupert said he had no idea.
James said he had no idea.
356
00:21:48,223 --> 00:21:50,517
There is… I have… I have no knowledge
357
00:21:50,600 --> 00:21:56,565
and there is no, uh, evidence, uh, that…
uh, that I'm… that I'm aware of that…
358
00:21:56,648 --> 00:22:00,777
They all stood back. Him, James, Rebekah.
359
00:22:00,861 --> 00:22:04,489
All said, "We knew nothing about that.
It's just the journalists did it."
360
00:22:05,198 --> 00:22:06,241
They let me down,
361
00:22:06,325 --> 00:22:09,911
and I think
they behaved, uh, disgracefully
362
00:22:09,995 --> 00:22:12,247
and betrayed the company and me.
363
00:22:12,331 --> 00:22:14,958
Okay. Whilst it has been obvious
to most of us…
364
00:22:15,042 --> 00:22:17,544
You know, Rebekah Brooks, by all accounts,
365
00:22:17,627 --> 00:22:21,798
would have been the natural scapegoat
for all of this, right?
366
00:22:22,549 --> 00:22:26,511
She was running News of the World,
and then the newspaper division.
367
00:22:27,179 --> 00:22:30,223
But Rupert loved Rebekah Brooks
368
00:22:30,307 --> 00:22:35,145
and was more loyal to Rebekah Brooks
than he was to James.
369
00:22:35,228 --> 00:22:37,064
Can I ask, in 2008…
370
00:22:37,147 --> 00:22:42,110
In fact, there's this moment
where one of the members of parliament
371
00:22:42,194 --> 00:22:47,240
asks Rupert about a specific incidence
of phone hacking,
372
00:22:47,324 --> 00:22:51,453
and Rupert, rather than answer, says…
373
00:22:52,162 --> 00:22:56,124
I think my son can perhaps answer that
in more detail. He was a lot closer.
374
00:22:57,167 --> 00:23:00,379
Rupert really threw James to the wolves
on that one.
375
00:23:00,462 --> 00:23:04,049
Had you been made aware prior
to the Milly Dowler story breaking
376
00:23:04,132 --> 00:23:07,594
that your reporters hacked into the phones
of any other crime victims?
377
00:23:07,677 --> 00:23:10,639
No, I had not. I had not been…
I had not been made aware of that.
378
00:23:11,139 --> 00:23:14,768
Most of this hacking took place
before James came into the job.
379
00:23:14,851 --> 00:23:17,729
But then it comes out
that James has in fact
380
00:23:17,813 --> 00:23:20,232
been on an email chain
approving a settlement
381
00:23:21,316 --> 00:23:24,486
in order to keep
the phone hacking situation quiet.
382
00:23:24,569 --> 00:23:27,656
When you signed off the Taylor payment,
383
00:23:27,739 --> 00:23:32,077
did you see or were you made aware
of the "For Neville" email?
384
00:23:32,160 --> 00:23:35,038
No. I…
I was not aware of that at the time.
385
00:23:35,539 --> 00:23:38,542
James approved a million-pound settlement
386
00:23:38,625 --> 00:23:43,130
to an official with a football association
that they had hacked into.
387
00:23:43,880 --> 00:23:45,715
James said the fact of the payment
388
00:23:45,799 --> 00:23:48,718
was on an email chain
that he read over the weekend.
389
00:23:48,802 --> 00:23:51,221
He hadn't really realized
what he was signing off on.
390
00:23:51,847 --> 00:23:54,349
Mr. Murdoch, you must be
the first mafia boss in history
391
00:23:54,433 --> 00:23:56,810
who didn't know
he was running a criminal enterprise.
392
00:23:56,893 --> 00:23:59,938
Mr. Watson, please.
I think that's inappropriate.
393
00:24:00,730 --> 00:24:03,900
So at the hearing with James and Rupert
394
00:24:03,984 --> 00:24:05,610
is Wendi Deng Murdoch,
395
00:24:05,694 --> 00:24:07,112
who is there by his side.
396
00:24:07,195 --> 00:24:09,197
So then there's this crazy moment
397
00:24:09,281 --> 00:24:15,120
where this guy rises to smash a cream pie
into Murdoch's face,
398
00:24:15,203 --> 00:24:18,582
like he's on some sort
of Benny Hill slapstick episode.
399
00:24:20,167 --> 00:24:23,003
And Wendi knocks it out of his hand,
400
00:24:23,503 --> 00:24:25,172
which is incredible television.
401
00:24:25,255 --> 00:24:29,092
It's an absurd moment,
but it's also really destabilizing.
402
00:24:29,968 --> 00:24:31,845
The sitting suspended for ten minutes.
403
00:24:31,928 --> 00:24:34,264
It creates sympathy for Murdoch.
404
00:24:34,347 --> 00:24:39,060
The instant Murdoch was hit
with that pie, News Corp's stock spiked.
405
00:24:39,144 --> 00:24:42,772
This is brilliant!
He needs to be hit with more pies.
406
00:24:44,399 --> 00:24:46,610
I think that the spectacle of the pie
407
00:24:46,693 --> 00:24:52,282
did distract a bit
from the substance of the allegations.
408
00:24:52,365 --> 00:24:54,868
And it turned the whole thing into a farce
409
00:24:54,951 --> 00:24:59,039
when the issues that were being litigated
were very serious.
410
00:24:59,122 --> 00:25:02,501
-Thank you, Mr. Chairman.
-Thank you. Thank you, Mr. Chairman.
411
00:25:02,584 --> 00:25:04,169
Thank you, all members.
412
00:25:04,252 --> 00:25:05,754
It didn't bring justice,
413
00:25:05,837 --> 00:25:09,591
and it didn't get to the truth
of this organized crime group.
414
00:25:14,095 --> 00:25:16,890
I must have watched that video
a hundred times.
415
00:25:16,973 --> 00:25:23,605
It's striking because Wendi has
such protectionism instincts for him.
416
00:25:23,688 --> 00:25:26,816
And James does not,
which is the interesting thing.
417
00:25:26,900 --> 00:25:28,735
Your wife has a very good left hook.
418
00:25:29,569 --> 00:25:31,488
I have to say, she was fast.
419
00:25:31,571 --> 00:25:34,783
I wrote her, "Wow, you're fast.
I'm not getting in your way, friend."
420
00:25:34,866 --> 00:25:39,704
I am not a big proponent
of the four-decade marriage age gap.
421
00:25:39,788 --> 00:25:42,415
But…
422
00:25:42,499 --> 00:25:46,711
…if ever there was a situation
where it would pay dividends…
423
00:25:49,256 --> 00:25:51,591
…it would be an ambush like that.
424
00:25:52,175 --> 00:25:56,346
It's very good for Wendi's brand
because she's seen as Rupert's protector.
425
00:25:56,846 --> 00:25:58,223
And a badass.
426
00:25:58,306 --> 00:26:00,183
And who's the jury…
427
00:26:00,267 --> 00:26:03,853
Wendi is just a much hipper person
than Murdoch is.
428
00:26:03,937 --> 00:26:05,605
She's young. She's with it.
429
00:26:06,314 --> 00:26:10,110
She would call Rupert an old man.
She would say that he was stupid.
430
00:26:10,193 --> 00:26:12,654
She belittles him in private,
431
00:26:12,737 --> 00:26:15,574
and then, over time,
socially in public as well.
432
00:26:15,657 --> 00:26:19,119
Do you understand, "beating
and scolding means you are in love"?
433
00:26:19,202 --> 00:26:21,454
-Yeah, she's very tough.
-Really?
434
00:26:23,123 --> 00:26:27,502
And she is linked to a number
of other prominent figures,
435
00:26:27,586 --> 00:26:28,795
uh, romantically.
436
00:26:30,797 --> 00:26:34,175
There were rumors
about a relationship with Tony Blair.
437
00:26:36,261 --> 00:26:39,389
Rupert grilled his staff
to figure out if that was true or not.
438
00:26:40,223 --> 00:26:44,769
The family went crazy. They were like,
"All hands on deck. Get rid of her."
439
00:26:45,270 --> 00:26:47,314
James and Lachlan got together
440
00:26:47,397 --> 00:26:51,735
and created a dossier on Wendi
to present to their father.
441
00:26:52,235 --> 00:26:53,987
And this included a note
442
00:26:54,070 --> 00:26:58,408
that Wendi had written to herself
in her diary and then thrown away.
443
00:26:59,451 --> 00:27:03,788
A housekeeper who was cleaning up
in Rupert and Wendi's triplex
444
00:27:03,872 --> 00:27:05,749
found that piece of paper.
445
00:27:06,666 --> 00:27:10,462
And in that note, she was describing
her feelings for Tony Blair.
446
00:27:12,297 --> 00:27:15,800
There were exchanges
about the curve of his bottom.
447
00:27:16,885 --> 00:27:19,179
How hot he looked when he was on stage.
448
00:27:20,013 --> 00:27:21,723
His piercing blue eyes.
449
00:27:22,223 --> 00:27:24,768
And how attracted to him she was.
450
00:27:25,852 --> 00:27:31,107
And when James and Lachlan presented that
to their father, that was the last straw.
451
00:27:31,608 --> 00:27:34,110
He was convinced to divorce Wendi.
452
00:27:34,194 --> 00:27:38,406
Media mogul Rupert Murdoch
is heading for divorce court again,
453
00:27:38,490 --> 00:27:41,117
ending a 14-year marriage
to his third wife.
454
00:27:42,661 --> 00:27:45,872
A Vanity Fair story
about the alleged relationship
455
00:27:45,955 --> 00:27:50,585
between Wendi Deng and Tony Blair
is published,
456
00:27:51,378 --> 00:27:55,590
and it had access
to the private note written by Wendi Deng.
457
00:27:57,509 --> 00:27:59,678
This was deeply humiliating for Rupert.
458
00:28:00,178 --> 00:28:03,014
But it was perfect tabloid fodder.
459
00:28:03,098 --> 00:28:08,436
And because Rupert has always
made his money on sex and scandal,
460
00:28:08,520 --> 00:28:13,775
a lot of people felt that he had finally
gotten his just desserts.
461
00:28:18,154 --> 00:28:19,906
A complete bombshell.
462
00:28:19,989 --> 00:28:22,242
After 168 years in print,
463
00:28:22,325 --> 00:28:25,829
this Sunday's edition
of the News of the World will be the last.
464
00:28:25,912 --> 00:28:28,832
Britain's biggest newspaper
was dramatically killed off.
465
00:28:28,915 --> 00:28:32,460
Staff gasped in shock.
Others reduced to tears.
466
00:28:33,128 --> 00:28:35,422
Closing the News of the World,
to Rupert Murdoch,
467
00:28:35,505 --> 00:28:39,801
is like Paul McCartney
deleting The White Album.
468
00:28:39,884 --> 00:28:42,178
It would have been heartbreaking for him.
469
00:28:42,262 --> 00:28:44,806
It not only made his fortune,
470
00:28:44,889 --> 00:28:47,809
it was also a massive part
of British popular culture.
471
00:28:49,352 --> 00:28:53,481
They were trying to protect their empire,
and then they did what it took to fix it.
472
00:28:54,482 --> 00:28:57,277
They're good at sacrificing things
they need to, to survive.
473
00:28:58,194 --> 00:29:00,363
News International chairman James Murdoch
474
00:29:00,447 --> 00:29:03,032
said the paper's proud history
had been tarnished
475
00:29:03,116 --> 00:29:05,660
by the behavior he called inhuman.
476
00:29:06,286 --> 00:29:09,372
We all got sacked.
200 journalists got laid off.
477
00:29:09,456 --> 00:29:12,083
Then he decided
to turn us over to the cops.
478
00:29:12,167 --> 00:29:14,252
And I just thought, "You fucker."
479
00:29:16,504 --> 00:29:18,923
Actions taken by certain individuals
480
00:29:19,007 --> 00:29:22,719
in what had been a good newsroom
have breached the trust
481
00:29:23,219 --> 00:29:26,222
that the News of the World
has with its readers.
482
00:29:26,306 --> 00:29:29,851
The main private eye,
Glenn Mulcaire, got arrested,
483
00:29:29,934 --> 00:29:31,227
got sent to jail,
484
00:29:31,311 --> 00:29:33,646
as well as a bunch of reporters.
485
00:29:34,147 --> 00:29:37,650
I am baffled by the decision
to charge me today.
486
00:29:37,734 --> 00:29:40,236
Rebekah Brooks was arrested.
487
00:29:40,320 --> 00:29:42,197
Rebekah played a blinder.
488
00:29:42,280 --> 00:29:45,533
"I had no idea. I was so far above.
I didn't know what they were doing."
489
00:29:46,534 --> 00:29:49,454
I really, really do want
to understand what happened.
490
00:29:49,537 --> 00:29:51,539
I think all of us do because that's…
491
00:29:51,623 --> 00:29:52,999
But she was smart.
492
00:29:53,082 --> 00:29:54,375
Really manipulative.
493
00:29:54,459 --> 00:29:55,460
Thank you, Chairman.
494
00:29:56,377 --> 00:29:57,921
She walked free.
495
00:29:58,797 --> 00:30:00,924
We've finished our meal,
and we're going home.
496
00:30:01,007 --> 00:30:04,552
James really took a hit
from the hacking scandal.
497
00:30:04,636 --> 00:30:08,723
That UK parliamentary committee
did issue a very searing opinion.
498
00:30:08,807 --> 00:30:13,853
The younger Murdoch deemed, quote,
"Not fit to run a major company."
499
00:30:14,521 --> 00:30:16,397
This is a moment when,
500
00:30:16,481 --> 00:30:21,486
if he was able to finally purchase
the entirety of BSkyB,
501
00:30:21,986 --> 00:30:26,282
the company as a whole
was there for James's taking.
502
00:30:26,366 --> 00:30:28,243
And the phone-hacking crisis
503
00:30:28,326 --> 00:30:31,579
just puts an absolute end to all of that.
504
00:30:32,789 --> 00:30:33,998
Shame on you!
505
00:30:34,082 --> 00:30:36,084
Rupert Murdoch is backing down.
506
00:30:36,167 --> 00:30:39,754
Murdoch to withdraw
News Corporation's takeover bid
507
00:30:39,838 --> 00:30:40,880
for broadcaster BSkyB.
508
00:30:40,964 --> 00:30:44,384
The hacking scandal
forced him to pull the plug on that deal.
509
00:30:44,467 --> 00:30:47,303
Media tycoon Rupert Murdoch in retreat.
510
00:30:50,056 --> 00:30:53,393
The Murdochs have had to pay
vast sums of money
511
00:30:53,476 --> 00:30:57,272
as a result of this hacking scandal.
It's well over ÂŁ1.5 billion.
512
00:30:59,774 --> 00:31:05,029
That scandal did so much damage
to the Murdoch name.
513
00:31:06,281 --> 00:31:10,577
Rupert is chased out of London
and shouted down anywhere he goes.
514
00:31:10,660 --> 00:31:12,078
He's public enemy number one.
515
00:31:12,161 --> 00:31:14,789
I was appalled
to find out what had happened.
516
00:31:16,082 --> 00:31:20,086
And I apologized.
And I have nothing further to say.
517
00:31:21,588 --> 00:31:22,672
Elisabeth!
518
00:31:22,755 --> 00:31:24,757
Good morning, Elisabeth. This way, please.
519
00:31:24,841 --> 00:31:27,135
Every time Liz left her house,
she'd be swarmed.
520
00:31:27,218 --> 00:31:28,928
People would be yelling things at her.
521
00:31:30,471 --> 00:31:35,727
So Elisabeth urges her father
to fire James.
522
00:31:38,354 --> 00:31:40,690
I talked to James and Liz about this.
523
00:31:41,357 --> 00:31:47,488
James is hunkered down in his office,
working on a response,
524
00:31:47,572 --> 00:31:53,119
and Liz comes into his office
and tells James,
525
00:31:54,287 --> 00:31:55,914
"Dad and I were talking,
526
00:31:55,997 --> 00:32:00,335
and we really think
that you need to resign
527
00:32:01,961 --> 00:32:03,713
and take the fall for this."
528
00:32:03,796 --> 00:32:06,215
"Because people are so upset,
529
00:32:06,299 --> 00:32:11,220
and it's not going to do
to simply fire lower-level executives."
530
00:32:11,304 --> 00:32:14,432
"It has to be a Murdoch,
and we think you should be it."
531
00:32:15,558 --> 00:32:18,603
As you can imagine, James was furious.
532
00:32:18,686 --> 00:32:21,731
Not just with the idea
that he would be the one to take the fall
533
00:32:21,814 --> 00:32:26,903
but with the idea that his father
wasn't willing to come and tell him.
534
00:32:27,403 --> 00:32:30,281
And what James said in that moment was,
535
00:32:30,365 --> 00:32:32,617
"If Dad wants to fire me,
he can do it himself."
536
00:32:32,700 --> 00:32:34,911
And then he threw Liz out of his office.
537
00:32:37,413 --> 00:32:42,335
That ended up being a defining moment
in his relationship with Liz.
538
00:32:42,835 --> 00:32:47,173
And he and Liz barely spoke to each other
for years afterward.
539
00:32:51,469 --> 00:32:53,763
One thing that's fascinating
about this family
540
00:32:53,846 --> 00:32:56,182
is that there's so much maneuvering
541
00:32:56,265 --> 00:32:58,476
and there are
billions of dollars at stake,
542
00:32:58,977 --> 00:33:03,189
but at the end of the day,
they are family.
543
00:33:03,272 --> 00:33:06,234
They do love each other on some level.
544
00:33:08,695 --> 00:33:10,822
When James was at his breaking point,
545
00:33:11,447 --> 00:33:15,618
Lachlan ended up flying to London
in the midst of this whole scandal
546
00:33:15,702 --> 00:33:19,914
to calm his dad down
and convince him not to fire James.
547
00:33:20,873 --> 00:33:24,377
So, instead, James was given an exit ramp.
548
00:33:24,460 --> 00:33:28,756
He had a job set up in New York
that was presented as a promotion,
549
00:33:28,840 --> 00:33:30,883
but everybody knew it wasn't.
550
00:33:32,969 --> 00:33:37,223
But it was one of the last moments
of brotherly solidarity
551
00:33:38,683 --> 00:33:42,520
where Lachlan really ended up
supporting James.
552
00:33:43,521 --> 00:33:44,647
You are a Murdoch.
553
00:33:44,731 --> 00:33:47,567
It's a blessing or a curse,
but it's there, like it or not.
554
00:33:47,650 --> 00:33:50,319
It's obviously been a very big year.
555
00:33:50,403 --> 00:33:53,781
It's obviously been a very nightmare year
for the family.
556
00:33:54,449 --> 00:33:56,951
Elisabeth thinks
the hacking scandal's a disaster
557
00:33:57,035 --> 00:34:00,163
and it would never have happened
if the company had been run properly.
558
00:34:02,457 --> 00:34:07,170
Liz is outside of News Corp,
building her own company, Shine.
559
00:34:07,670 --> 00:34:09,422
You are the biggest loser!
560
00:34:09,505 --> 00:34:13,426
She helps make a huge success
of The Biggest Loser,
561
00:34:13,509 --> 00:34:16,304
a perfect Murdochian type of show.
562
00:34:16,387 --> 00:34:18,681
Shut up and focus.
563
00:34:19,640 --> 00:34:21,726
She has shown that she's got talent
564
00:34:21,809 --> 00:34:25,396
for the sorts of things that you need
in running a media company.
565
00:34:25,480 --> 00:34:27,607
Elisabeth, do you mind, please?
566
00:34:27,690 --> 00:34:30,026
Elisabeth has her own production company
567
00:34:30,109 --> 00:34:32,236
that was recently bought by News Corp.
568
00:34:32,320 --> 00:34:36,532
An indication, some say,
that she may be directly next in line.
569
00:34:37,033 --> 00:34:40,745
Rupert buys Shine,
and she makes a lot of money.
570
00:34:41,329 --> 00:34:44,499
And so she was brought
back inside his orbit.
571
00:34:45,249 --> 00:34:49,420
Whenever he wanted one of his kids
to work for him and they were resisting,
572
00:34:50,671 --> 00:34:53,591
Rupert would just throw enough money
at the problem
573
00:34:53,674 --> 00:34:58,137
that he could buy them off
and force them back into his employ.
574
00:34:58,721 --> 00:35:02,391
Do you feel that in succession terms,
or in sort of family terms,
575
00:35:02,475 --> 00:35:04,644
that you've been overlooked
for the top job?
576
00:35:04,727 --> 00:35:06,771
No, but I don't think that way.
577
00:35:06,854 --> 00:35:11,901
I always think about what can be done,
so I never feel completely satisfied.
578
00:35:11,984 --> 00:35:14,320
You always think of what more you can do.
579
00:35:14,403 --> 00:35:18,199
Elisabeth is probably the media executive
580
00:35:18,282 --> 00:35:23,287
who has had the greatest success outside
the Murdoch company of any of the kids.
581
00:35:24,038 --> 00:35:26,874
But Rupert is of a certain generation,
582
00:35:26,958 --> 00:35:32,421
and so he always saw either James
or Lachlan as the most likely successor.
583
00:35:34,549 --> 00:35:38,511
James, for what it's worth,
told me that Rupert is a misogynist
584
00:35:38,594 --> 00:35:41,931
and never considered Liz
a viable successor.
585
00:35:42,431 --> 00:35:44,350
So she is dispirited.
586
00:35:44,892 --> 00:35:47,812
She clearly does
really admire and respect him,
587
00:35:47,895 --> 00:35:52,024
but she cannot deny
the damage done by the family empire.
588
00:35:52,859 --> 00:35:56,279
Please welcome
the one and only Elisabeth Murdoch.
589
00:35:59,532 --> 00:36:01,993
Elisabeth goes
to Edinburgh Television Festival
590
00:36:02,076 --> 00:36:04,704
to give a very prestigious lecture.
591
00:36:04,787 --> 00:36:09,876
Being asked to give
the James MacTaggart Memorial Lecture
592
00:36:09,959 --> 00:36:13,379
has been quite a welcome distraction
593
00:36:13,462 --> 00:36:18,467
from some of the other nightmares
much closer to home.
594
00:36:19,385 --> 00:36:23,764
Yes, you have met
some of my family before.
595
00:36:24,348 --> 00:36:26,934
Elisabeth makes
this absolutely scorching speech.
596
00:36:27,018 --> 00:36:30,188
She says all the sort of stuff
that you don't want to see in public.
597
00:36:30,271 --> 00:36:32,857
Speaking of independence,
598
00:36:33,524 --> 00:36:38,487
my brother James spoke about it
in his MacTaggart three years ago.
599
00:36:39,238 --> 00:36:41,449
James ended his lecture
600
00:36:41,532 --> 00:36:43,492
with a line in which he claimed…
601
00:36:43,576 --> 00:36:48,581
The only reliable
and perpetual guarantor of independence
602
00:36:48,664 --> 00:36:49,790
is profit.
603
00:36:50,291 --> 00:36:54,086
The reason his statement
sat so uncomfortably
604
00:36:54,170 --> 00:36:59,050
is that profit without purpose
is a recipe for disaster.
605
00:37:00,676 --> 00:37:05,264
News Corp has been accused
of putting profits first and nothing else.
606
00:37:05,973 --> 00:37:07,808
Elisabeth's saying the same thing
607
00:37:07,892 --> 00:37:09,977
everyone's said about Murdoch
to this point.
608
00:37:10,061 --> 00:37:13,981
Profit must be our servant,
609
00:37:14,065 --> 00:37:16,442
not our master.
610
00:37:16,943 --> 00:37:18,527
And so she's aligning herself
611
00:37:18,611 --> 00:37:21,072
with the enemies of James
and the enemies of her father.
612
00:37:22,365 --> 00:37:25,409
We see all of this play out in public.
613
00:37:25,493 --> 00:37:28,496
The deep, deep fissures
in the Murdoch family.
614
00:37:29,664 --> 00:37:32,792
Not surprisingly, her father
doesn't speak to her for nine weeks.
615
00:37:33,626 --> 00:37:36,587
Liz ended up
leaving the company altogether,
616
00:37:36,671 --> 00:37:37,755
setting out on her own.
617
00:37:39,006 --> 00:37:44,303
She wants to get away from
all of the toxicity of the family empire.
618
00:37:45,388 --> 00:37:47,598
And the phone-hacking scandal
619
00:37:47,682 --> 00:37:49,767
was her opportunity to do that.
620
00:37:50,268 --> 00:37:51,727
Yup, thanks. Bye.
621
00:37:55,690 --> 00:37:57,483
Good morning, Mr. Murdoch.
622
00:37:57,566 --> 00:38:00,319
You're gonna retire soon, finally, huh,
and have a good life?
623
00:38:00,403 --> 00:38:01,696
-No way.
-Oh!
624
00:38:02,196 --> 00:38:04,865
The time after the phone-hacking scandal
625
00:38:04,949 --> 00:38:09,912
was a real ebb in Murdoch's
professional and personal life.
626
00:38:10,538 --> 00:38:12,999
BSkyB has been denied to him.
627
00:38:13,082 --> 00:38:15,835
The stalled deal
and the scandal that caused it
628
00:38:15,918 --> 00:38:18,963
has thrown open the question of succession
in the Murdoch empire.
629
00:38:19,630 --> 00:38:22,842
He thought he was rolling
to world domination,
630
00:38:22,925 --> 00:38:25,469
and now things are starting to fall apart.
631
00:38:30,224 --> 00:38:31,684
Earlier in his life,
632
00:38:31,767 --> 00:38:33,936
Rupert reveled in the idea
633
00:38:34,020 --> 00:38:37,440
of a battle royal between his children
to succeed him.
634
00:38:39,400 --> 00:38:41,402
Rupert pitted them against each other,
635
00:38:41,485 --> 00:38:44,280
played them off each other,
like they were cogs
636
00:38:44,363 --> 00:38:47,908
in this dynastic power game
he was playing.
637
00:38:50,077 --> 00:38:55,541
But he allowed his quest
for some kind of immortality
638
00:38:55,624 --> 00:39:00,338
to destroy his actual relationship
with his actual kids.
639
00:39:01,464 --> 00:39:03,299
This is about control
640
00:39:04,091 --> 00:39:07,636
and about the lack of respect
that Rupert Murdoch is showing
641
00:39:08,137 --> 00:39:11,474
in his very last chapter in life.
642
00:39:12,850 --> 00:39:16,937
Basically saying to three of his children,
"I don't think you have it."
643
00:39:20,524 --> 00:39:24,487
And this litigation
brought all of it to the surface.
644
00:39:29,533 --> 00:39:32,453
This morning, the family
believed to be the inspiration
645
00:39:32,536 --> 00:39:34,747
behind the HBO hit show Succession
646
00:39:34,830 --> 00:39:38,250
is locked in a similar battle
playing out in real life.
647
00:39:38,334 --> 00:39:42,671
This is a dispute
about the Murdoch Family Trust,
648
00:39:42,755 --> 00:39:45,341
and this is very much shrouded in mystery,
649
00:39:45,424 --> 00:39:47,968
and we aren't sure
exactly what's going on inside.
650
00:39:48,469 --> 00:39:52,765
In September, we found out
that the trial is about to start.
651
00:39:53,391 --> 00:39:57,144
The setting is Reno, Nevada,
the birthplace of divorce in this country.
652
00:39:58,187 --> 00:40:01,649
Of all places for the Murdoch family
to end up in court, in Reno, Nevada.
653
00:40:01,732 --> 00:40:03,150
No offense to Reno.
654
00:40:04,110 --> 00:40:07,488
I personally went
to that courthouse every day.
655
00:40:08,072 --> 00:40:10,449
The first day was just a bizarre scene.
656
00:40:11,951 --> 00:40:14,203
SUV, SUV, SUV.
657
00:40:14,703 --> 00:40:16,205
Press everywhere.
658
00:40:16,288 --> 00:40:18,666
Lawyers are swooping
up the courthouse steps,
659
00:40:18,749 --> 00:40:20,334
and then the children come.
660
00:40:22,044 --> 00:40:25,131
You know, so much of the Murdoch story
661
00:40:25,214 --> 00:40:29,802
has been narrated by anonymous sources
and self-interested parties
662
00:40:29,885 --> 00:40:33,222
speculating about what was going on
behind the scenes.
663
00:40:33,722 --> 00:40:36,267
But for the first time with this trial,
664
00:40:36,767 --> 00:40:39,395
we were getting the actual story.
665
00:40:39,979 --> 00:40:44,066
The real human drama of this family
was being laid bare.
666
00:40:44,650 --> 00:40:47,236
-Rupert!
-Big smile!
667
00:40:47,736 --> 00:40:49,738
Are you confident of victory?
668
00:40:51,157 --> 00:40:53,909
Every major member of the family
is testifying
669
00:40:53,993 --> 00:40:55,953
and in front of each other in court.
670
00:40:57,288 --> 00:40:58,914
Rupert went first.
671
00:41:00,666 --> 00:41:03,961
And here is Rupert Murdoch
taking the witness stand
672
00:41:04,044 --> 00:41:05,296
in defense of his effort
673
00:41:05,379 --> 00:41:08,716
to unilaterally change
this inviolable family trust,
674
00:41:08,799 --> 00:41:13,095
even though, by definition,
an inviolable trust cannot be changed.
675
00:41:13,929 --> 00:41:18,434
But on some level, you can understand
why he would feel entitled to do it.
676
00:41:19,393 --> 00:41:20,436
He built this empire.
677
00:41:20,519 --> 00:41:24,440
He made everyone in this room
a multibillionaire.
678
00:41:24,523 --> 00:41:26,192
And it's his money.
679
00:41:26,817 --> 00:41:30,654
The judge said
that he was open to their argument
680
00:41:30,738 --> 00:41:34,533
if he can prove
that he's doing it in good faith
681
00:41:34,617 --> 00:41:38,454
and for the sole benefit
of his beneficiaries.
682
00:41:39,330 --> 00:41:43,083
But Rupert is a man who speaks his mind.
He's a master of the universe.
683
00:41:43,167 --> 00:41:46,545
And so how disciplined
is he gonna be on the witness stand,
684
00:41:46,629 --> 00:41:48,881
I think, is a question
from the very beginning.
685
00:41:48,964 --> 00:41:52,510
What will become a problem is that
when Rupert's cross-examined about this,
686
00:41:52,593 --> 00:41:53,802
he's incredibly honest.
687
00:41:54,595 --> 00:41:58,224
He was very upfront about the fact
that this was about his legacy
688
00:41:58,307 --> 00:42:03,187
and he didn't trust James
or Liz or Prudence
689
00:42:03,270 --> 00:42:07,233
to retain the conservative political slant
of his media outlets.
690
00:42:07,316 --> 00:42:10,903
That's why he wanted
Lachlan to take control.
691
00:42:12,905 --> 00:42:15,282
I'm not a legal expert,
but a legal expert would say
692
00:42:15,366 --> 00:42:17,993
that was not in his best interest
to make that argument.
693
00:42:18,994 --> 00:42:21,664
But Rupert's legal team appeared to think
694
00:42:21,747 --> 00:42:23,791
they had an ace in the hole.
695
00:42:23,874 --> 00:42:29,421
And that was an exchange
between Rupert and Anna, his second wife.
696
00:42:33,592 --> 00:42:35,553
One day, several months prior,
697
00:42:35,636 --> 00:42:39,473
she had reached out to Rupert,
which was a bit strange.
698
00:42:39,557 --> 00:42:41,475
She doesn't ordinarily just call Rupert.
699
00:42:41,559 --> 00:42:44,228
It rarely happens.
As Rupert says, it's out of the blue.
700
00:42:45,854 --> 00:42:47,523
They're talking, catching up,
701
00:42:47,606 --> 00:42:50,943
and Rupert shares with her
some of his angst
702
00:42:51,026 --> 00:42:54,655
about James doing something
with the sisters to shove Lachlan aside.
703
00:42:54,738 --> 00:42:57,366
And after they get off the phone,
704
00:42:57,449 --> 00:42:59,577
Anna writes Rupert by email.
705
00:43:01,787 --> 00:43:05,124
"I think it's imperative
that you get this sorted out soon."
706
00:43:05,207 --> 00:43:07,793
"Some toes will be trod on and egos hurt,
707
00:43:08,294 --> 00:43:10,963
but it would be worse
to leave things as they are."
708
00:43:11,046 --> 00:43:13,674
Then she tells Rupert,
"You are the kingpin."
709
00:43:14,550 --> 00:43:16,468
"You still hold the power."
710
00:43:16,969 --> 00:43:21,223
And Rupert tells Anna he'd love
nothing more than peace all around,
711
00:43:21,307 --> 00:43:22,725
but it's not looking that way.
712
00:43:23,350 --> 00:43:26,604
And then Anna and Rupert
start talking about the kids.
713
00:43:27,187 --> 00:43:30,983
And intriguingly, Rupert
is sort of complimentary of James.
714
00:43:31,066 --> 00:43:32,985
"He's bright, he's articulate,
715
00:43:33,068 --> 00:43:36,030
but time and time again,
showed bad judgment."
716
00:43:37,740 --> 00:43:41,118
Rupert tells Anna,
this isn't just about the children.
717
00:43:41,702 --> 00:43:43,203
He says, "Fox and our empire
718
00:43:43,287 --> 00:43:47,374
is the only thing
standing in the way of this woke mob,"
719
00:43:47,458 --> 00:43:51,337
that, "We are the true defenders
of the free world."
720
00:43:51,879 --> 00:43:55,257
And James and his wife, Kathryn,
want to change it.
721
00:43:55,841 --> 00:43:58,594
And Anna does something
kind of surprising.
722
00:44:00,512 --> 00:44:05,100
She talks about her resentment
of James and Kathryn as well.
723
00:44:05,184 --> 00:44:07,645
That they
and their like-minded woke friends
724
00:44:07,728 --> 00:44:10,022
are gonna be the ruination of the country.
725
00:44:11,065 --> 00:44:14,902
America will be doomed
if these cultural elites take over.
726
00:44:17,071 --> 00:44:18,822
She's in perfect agreement.
727
00:44:19,657 --> 00:44:22,660
Rupert's lawyers try to use this
to say, "Look,
728
00:44:22,743 --> 00:44:24,870
if all of this mess we're in
729
00:44:24,953 --> 00:44:29,416
is because Rupert was trying
to accommodate Anna in their divorce,
730
00:44:30,250 --> 00:44:32,503
Anna, who set these parameters,
731
00:44:32,586 --> 00:44:37,633
Anna, who never wanted
to see one child succeed above the others,
732
00:44:37,716 --> 00:44:39,843
she is now saying
that doesn't matter to her."
733
00:44:39,927 --> 00:44:42,554
"She is endorsing Lachlan's leadership."
734
00:44:42,638 --> 00:44:46,600
"She's endorsing Rupert
backing up Lachlan's leadership."
735
00:44:47,518 --> 00:44:50,771
"Why are we even here?"
is basically the implicit argument.
736
00:44:52,314 --> 00:44:56,777
This, of course, has no legal weight.
737
00:44:56,860 --> 00:44:59,321
This is just an exchange of emails.
738
00:45:00,155 --> 00:45:02,741
There's binding language around the trust,
739
00:45:02,825 --> 00:45:04,618
and Anna has no control.
740
00:45:05,119 --> 00:45:08,205
And she wasn't telling him
he should change the trust.
741
00:45:08,288 --> 00:45:11,333
She doesn't have the authority
to tell him to change the trust.
742
00:45:11,417 --> 00:45:15,921
Still, as a matter of atmospherics,
it was important.
743
00:45:16,004 --> 00:45:18,674
And it shows what's at stake
in this trial.
744
00:45:21,260 --> 00:45:22,886
Once the litigation began,
745
00:45:22,970 --> 00:45:28,308
years of internal Murdoch
family communications, texts and e-mails,
746
00:45:28,392 --> 00:45:31,603
started to surface
that were really painful
747
00:45:31,687 --> 00:45:34,773
for, I think, everyone involved,
but especially James.
748
00:45:37,317 --> 00:45:39,236
He started telling friends,
749
00:45:39,319 --> 00:45:42,990
"My advice is to never get involved
in litigation with your family
750
00:45:43,073 --> 00:45:46,076
where there's discovery
and the discovery is all about you."
751
00:45:47,327 --> 00:45:49,580
I mean, just imagine what that's like
752
00:45:51,248 --> 00:45:53,542
if you were suddenly able to read
753
00:45:53,625 --> 00:45:59,089
everything that your family says about you
behind your back for two decades.
754
00:45:59,173 --> 00:46:00,174
It was brutal.
755
00:46:01,675 --> 00:46:04,970
And I think there is a tragedy in that
756
00:46:05,053 --> 00:46:09,892
that transcends whatever you think
about the Murdochs or Fox News.
757
00:46:13,687 --> 00:46:16,356
This is the story of a family unraveling.
758
00:46:17,816 --> 00:46:20,277
And it was just the beginning.
64983
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