Ailes, 75, will report to
FOR THE RECORD
June 25, 1:43 p.m.: The headline on an earlier version of this article said that Fox News chief Roger Ailes received a contract extension. He received a new contract.
Rupert Murdoch becomes executive co-chairman for the company, Lachlan Murdoch will be executive co-chairman and brother James will be chief executive. While the move begins a transfer of power to Murdoch's sons, the elder Murdoch is expected to remain active in the company's operations.
Ailes' future with the company became the subject of speculation as a result of the moves. His last contract as chairman and chief executive of Fox News and Fox Business and chairman of Fox Television Stations was set to expire in 2016, and his relationship with Murdoch's sons was reportedly strained.
When the new management structure was first reported,
The Thursday announcement of Ailes' deal appears to smooth over any differences there might have been over the reporting structure. Ailes was undoubtedly helped by the strong financial performance of Fox News, a unit that he essentially built from scratch in 1996. Last year it accounted for 18% of 21st Century Fox's profit. At the very least, it likely guarantees Ailes a comfortable parachute if changes are made down the road.
"He created a hugely successful and profitable network, and the Murdochs needed to keep him happy," said Joe Peyronnin, an associate journalism professor at Hofstra University who served as a news executive at several networks, including Fox.
The move to keep Ailes was warmly received inside Fox News and Fox Business, where the executive is known for being fiercely loyal to his on-air talent.