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      Suzanne Scott’s Vision for Fox News Gets Tested in Court

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      Suzanne Scott remade Fox News Media into a lucrative consumer brand. But a $1.6 billion defamation suit against the company is testing her strategy and leadership.Before the committee investigating the Jan. 6 insurrection held its first prime-time hearing in June, Suzanne Scott, the chief executive of Fox News Media, called Lachlan Murdoch, her boss, to tell him how her network planned to broadcast the event.They wouldn’t, she said. The channel would stick with its usual prime-time lineup of Tucker Carlson, Sean Hannity and Laura Ingraham. Mr. Murdoch, the executive chairman of Fox Corporation, was fine with Ms. Scott’s decision, according to an executive with knowledge of their conversation.As a business move, Ms. Scott’s call was the right one for Fox News in the end. As many viewers tuned in as they would on a regular night. And Fox still managed to best CNN in the ratings.The decision was true to form, according to interviews with more than a dozen current and former colleagues. Since Ms. Scott took over the top job at Fox News in 2018, her colleagues said, she has managed from behind the scenes with a simple mantra: Respect Fox’s audience. Often, that involves sparing conservative viewers what they don’t want to hear — even when that means ignoring one of the biggest stories of the year.That strategy has helped Fox News succeed not just as the most-watched cable news network in the country but also as a multibillion-dollar consumer brand with a suite of businesses that, according to a recent company promo for one product, offers fans “The World According to Fox.” In addition to the Fox News and Fox Business cable channels, Ms. Scott has introduced Fox News Books, a publisher of meditations on Christianity; Fox Nation, a $5.99-per-month streaming service that produces a reboot of “Cops” and an original special from Mr. Carlson, “The End of Men,” that purports to explore a nationwide decline in testosterone rates; and Fox Weather, a new app and cable channel.Ms. Scott told her boss, Lachlan Murdoch, right, that the network wouldn’t broadcast the first Jan. 6 prime-time hearing in June. Mr. Murdoch is the son of Rupert Murdoch, the chairman of News Corp and Fox.Drew Angerer/Getty ImagesBut Ms. Scott’s Fox News — a sanctuary for conservatives where few unpleasant facts intrude and political misinformation has spread — also looms large in a case that threatens Fox’s business, and possibly Ms. Scott herself. She has emerged as one of the central figures in the $1.6 billion defamation lawsuit against Fox by Dominion Voting Systems, in which the voting company accuses Fox executives of juicing ratings and profits by repeatedly airing false information about Dominion machines siphoning votes away from former President Donald J. Trump.According to several people closely involved in the case, lawyers for Dominion are expected to depose her soon. A judge has granted Dominion access to her emails and text messages from the period after the 2020 election when Fox anchors and guests amplified some of the most outrageous falsehoods about Dominion and its supposed role in a plot to steal the election.So far, those messages contained at least one instance in which Ms. Scott expressed skepticism about the dubious claims of voter fraud that her network had been promoting, a recent court proceeding revealed. That kind of evidence is what Dominion hopes will ultimately convince a jury that Fox broadcast information it knew to be false, which would leave the company on the hook for significant damages.People who have heard Ms. Scott speak in meetings say she has been critical of Mr. Trump’s election denial claims, though she mostly keeps her personal politics private. (She is registered as unaffiliated.) One colleague recalled that in a meeting shortly after the 2020 election, Ms. Scott seemed in disbelief as she described how people she considered otherwise serious and rational thought there was any chance Mr. Trump could legitimately stop President Biden’s inauguration.What to Know About the Trump InvestigationsCard 1 of 6Numerous inquiries. More

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      Fox News, Once Home to Trump, Now Often Ignores Him

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      The former president hasn’t been interviewed on the Rupert Murdoch-owned cable network in more than 100 days, and other Republicans often get the attention he once did.It’s been more than 100 days since Donald J. Trump was interviewed on Fox News.The network, which is owned by Rupert Murdoch and boosted Mr. Trump’s ascension from real estate developer and reality television star to the White House, is now often bypassing him in favor of showcasing other Republicans.In the former president’s view, according to two people who have spoken to him recently, Fox’s ignoring him is an affront far worse than running stories and commentary that he has complained are “too negative.” The network is effectively displacing him from his favorite spot: the center of the news cycle.On July 22, as Mr. Trump was rallying supporters in Arizona and teasing the possibility of running for president in 2024, saying “We may have to do it again,” Fox News chose not to show the event — the same approach it has taken for nearly all of his rallies this year. Instead, the network aired Laura Ingraham’s interview with a possible rival for the 2024 Republican nomination, Gov. Ron DeSantis of Florida. It was the first of two prime-time interviews Fox aired with Mr. DeSantis in the span of five days; he appeared on Tucker Carlson’s show shortly after talking to Ms. Ingraham.When Mr. Trump spoke to a gathering of conservatives in Washington this week, Fox did not air the speech live. It instead showed a few clips after he was done speaking. That same day, it did broadcast live — for 17 minutes — a speech by former Vice President Mike Pence.Mr. Trump has complained recently to aides that even Sean Hannity, his friend of 20 years, doesn’t seem to be paying him much attention anymore, one person who spoke to him recalled.Fox News chose to air live a 17-minute speech that Mike Pence gave this week.Nathan Howard/Getty ImagesThe snubs are not coincidental, according to several people close to Mr. Murdoch’s Fox Corporation who spoke on the condition of anonymity to discuss the company’s operations. This month, The New York Post and The Wall Street Journal, both owned by Mr. Murdoch, published blistering editorials about Mr. Trump’s actions concerning the Jan. 6, 2021, riot on the Capitol.The skepticism toward the former president extends to the highest levels of the company, according to two people with knowledge of the thinking of Mr. Murdoch, the chairman, and his son Lachlan, the chief executive. It also reflects concerns that Republicans in Washington, like Senator Mitch McConnell of Kentucky, the minority leader, have expressed to the Murdochs about the potential harm Mr. Trump could cause to the party’s chances in upcoming elections, especially its odds of taking control of the Senate.The Murdochs’ discomfort with Mr. Trump stems from his refusal to accept his election loss, according to two people familiar with those conversations, and is generally in sync with the views of Republicans, like Mr. McConnell, who mostly supported the former president but long ago said the election was settled and condemned his efforts to overturn it.One person familiar with the Murdochs’ thinking said they remained insistent that Fox News had made the right call when its decision desk projected that Joseph R. Biden would win Arizona just after 11 p.m. on the night of the election — a move that infuriated Mr. Trump and short-circuited his attempt to prematurely declare victory. This person said Lachlan Murdoch had privately described the decision desk’s call, which came days before other networks concluded that Mr. Trump had lost the state, as something only Fox “had the courage and science to do.”Donald Trump, Post-PresidencyThe former president remains a potent force in Republican politics.Losing Support: Nearly half of G.O.P. voters prefer someone other than Donald J. Trump for president in 2024, a Times/Siena College poll showed.Trump-Pence Split: An emerging rivalry between Mr. Trump and Mike Pence, his former vice president, reveals Republicans’ enduring divisions.Looking for Cover: Mr. Trump could announce an unusually early 2024 bid, a move designed to blunt a series of damaging Jan. 6 revelations.Potential Legal Peril: From the Justice Department’s Jan. 6 inquiry to an investigation in Georgia, Mr. Trump is in legal jeopardy on several fronts.Some of the people acknowledged that Fox’s current approach to Mr. Trump could be temporary. If Mr. Trump announces he is running for president, or if he is indicted, he will warrant more coverage, they said.A spokesman for Mr. McConnell declined to comment. A spokesman for the Fox Corporation also declined to comment, as did a spokeswoman for Mr. Trump.The relationship between Mr. Trump and the Murdoch media empire has long been complicated — an arrangement of mutual convenience and mistrust that has had sensational ups and downs since Mr. Trump first talked himself onto the gossip pages of The New York Post in the 1980s.But the spat between the former president and the media baron who has helped set the Republican Party’s agenda for decades is occurring in a much larger and more fragmented media landscape, as new personalities and platforms make it much harder for any one outlet to change the narrative. Mr. Trump’s allies in the corners of the conservative media that are more loyal to him — including Breitbart, Newsmax and talk radio — are already seizing on the turn inside Fox as evidence of a betrayal.Mr. Trump appears willing to fight. He blasted “Fox & Friends” this week on his social media service, Truth Social, for being “terrible” and having “gone to the ‘dark side’” after one of its hosts had mentioned that Mr. DeSantis had beat Mr. Trump in two recent polls of a hypothetical 2024 Republican primary contest. Then, offering no evidence, he blamed Paul Ryan, the former Republican speaker of the House, with whom he often clashed. Mr. Ryan sits on the Fox Corporation’s board of directors.The Post was often on Mr. Trump’s side in its editorials when he was president. But it occasionally went against him, like when Mr. Trump refused to concede the election in 2020 and the paper’s front-page headline blared: “Mr. President, STOP THE INSANITY.”Mr. Trump found a home on Fox News when the network’s founder, Roger Ailes, gave him a weekly slot on “Fox & Friends” in 2011. Mr. Trump used the platform to connect with the budding Tea Party movement as he thrashed establishment Republicans like Mr. Ryan and spread a lie about the authenticity of President Barack Obama’s birth certificate.Initially, neither Mr. Ailes nor Mr. Murdoch thought of Mr. Trump as a serious presidential candidate. Mr. Ailes told colleagues at the time that he thought Mr. Trump was using his 2016 campaign to get a better deal with NBC, which broadcast “The Apprentice,” according to “Insurgency,” this reporter’s account of Mr. Trump’s rise in the G.O.P. And, when Ivanka Trump told Mr. Murdoch over lunch in 2015 that her father intended to run, Mr. Murdoch reportedly did not even look up from his soup, according to “The Devil’s Bargain,” by Joshua Green.But as Mr. Trump became bigger than any one news outlet — and bigger than even his own political party — he was able to turn the tables and rally his supporters against Fox or any other outlet he felt was too critical of him. He regularly used Twitter to attack Fox personalities like Megyn Kelly, Charles Krauthammer and Karl Rove.The network could always be critical of him in its news coverage. But now the skepticism comes through louder — in asides from news anchors, in interviews with voters or in opinion articles for other Murdoch-owned properties.Referring to the congressional investigation into the Jan. 6 attack, the Fox anchor Bret Baier said it had made Mr. Trump “look horrific” by detailing how it had taken 187 minutes for him to be persuaded to say anything publicly about the riot. One recent segment on FoxNews.com featured interviews with Trump supporters who were overwhelmingly unenthusiastic about a possible third campaign, saying that they thought “his time has passed” and that he was “a little too polarizing.” Then they offered their thoughts on who should replace him on the ticket. Unanimously, they named Mr. DeSantis.“I spent 11 years at Fox, and I know nothing pretaped hits a Fox screen that hasn’t been signed off on and sanctioned at the very top levels of management,” said Eric Bolling, a former Fox host who is now with Newsmax. “Especially when it has to do with a presidential election.”There can be no denying that Fox News remains Fox News. Viewers in recent weeks have seen occasionally critical coverage of Mr. Trump, but, unlike other news networks, Fox has chosen to air its own prime-time programming rather than the hearings of the committee investigating the Jan. 6 attack. (The writer of this article is an MSNBC contributor.) Mr. Carlson, Mr. Hannity and Ms. Ingraham dismiss the hearings as a “show trial.”“They are lying, and we are not going to help them do it,” Mr. Carlson has said. “What we will do instead is to try to tell you the truth.”The network has aired the Jan. 6 committee hearings during the day, when far fewer viewers are tuning in. But other segments during the daytime and early evening play up violent crime in Democratic-run cities or Mr. Biden’s verbal and physical stumbles. As the government announced that a key indicator of economic health declined last quarter, the headline Fox scrawled across the screen read, “Biden Denies Recession as U.S. Enters Recession.”Mr. Trump with Sean Hannity in 2018.Doug Mills/The New York TimesOn April 13, Mr. Trump called into Mr. Hannity’s show and ran through a list of crises he claimed would not be happening “had we won this election, which we did.”He hasn’t been interviewed on the network since. More

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      Judge Allows Dominion’s Defamation Suit to Include Fox Corporation

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      The decision broadens the possible legal exposure to the highest ranks of the Fox media empire.A judge presiding in the defamation lawsuit against Fox News by Dominion Voting Systems ruled this week that the cable channel’s parent company, Fox Corporation, can be included in the suit, broadening the possible legal exposure to the highest ranks of the Fox media empire.Dominion had argued that Fox Corporation should also be part of the litigation because its two most senior executives, Rupert and Lachlan Murdoch, played “a direct role in participating in, approving and controlling” statements that fed false perceptions of voter fraud in the 2020 presidential election.In a decision, Judge Eric M. Davis of Delaware Superior Court said Dominion had “adequately pleaded” facts supporting its claim that Fox Corporation was “directly liable” for what Fox News put on the air. He reasoned that the Murdochs were widely known to have a hand in shaping Fox News coverage. Judge Davis also said it was reasonable to infer that Fox Corporation had “participated in the creation and publication of Fox News’s defamatory statements.”Dominion’s suit against Fox News, filed in March 2021 in Delaware, where both companies are incorporated, seeks at least $1.6 billion in damages.“The truth matters,” Dominion’s lawyers wrote in their initial complaint. “Lies have consequences. Fox sold a false story of election fraud in order to serve its own commercial purposes, severely injuring Dominion in the process. If this case does not rise to the level of defamation by a broadcaster, then nothing does.”Fox News and its parent company have denied that the statements in question were defamatory in the first place, arguing that what was said on Fox broadcasts about Dominion was, in part, protected expressions of opinion. Included were various unsubstantiated allegations from Fox News hosts and guests that Dominion was somehow complicit in a conspiracy to steal votes from former President Donald J. Trump.Separately, Judge Davis denied a claim from Dominion to extend its suit to Fox Broadcasting, the television and entertainment division of the Fox brand that is home to shows including “MasterChef” and “The Simpsons.”Fox News moved to dismiss the Dominion suit late last year, but that motion was rejected.The lawsuit is in the discovery phase, the process through which Dominion lawyers are combing through internal Fox communications in search of evidence. Dominion’s lawyers will need to prove that people at the network acted with “actual malice,” meaning they either knew the allegations against Dominion were false or they recklessly disregarded facts that would have shown them to be false. More

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      Much of Smartmatic Case Against Fox News Can Proceed, Judge Rules

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      The $2.7 billion defamation lawsuit against Fox News by the election technology company Smartmatic can move forward, a New York judge ruled on Tuesday. But the judge tossed out Smartmatic’s defamation claims against the Fox News host Jeanine Pirro and a network guest, Sidney Powell.Smartmatic sued Rupert Murdoch’s cable news networks last year, along with several Fox hosts and guests. The lawsuit accused them of damaging the company by promoting a false narrative about the 2020 election: that Smartmatic and other voting systems companies tried to rig the race against President Donald J. Trump. Smartmatic later expanded its legal battle against disinformation to the right-wing media outlets Newsmax and One America News Network.On Tuesday, Justice David B. Cohen of State Supreme Court in Manhattan said in a 61-page ruling that, “at a minimum, Fox News turned a blind eye to a litany of outrageous claims about plaintiffs, unprecedented in the history of American elections, so inherently improbable that it evinced a reckless disregard for the truth.”He added, “At this nascent stage of the litigation, this court finds that plaintiffs have pleaded facts sufficient to allow a jury to infer that Fox News acted with actual malice.”He also declined to dismiss Smartmatic claims against Maria Bartiromo, the Fox Business star, and Lou Dobbs, whose Fox Business show was a frequent clearinghouse for baseless theories of electoral fraud in the weeks after Mr. Trump’s defeat. Fox canceled Mr. Dobbs’s program last year, one day after Smartmatic sued.Citing a legal technicality, Justice Cohen dismissed most of Smartmatic’s defamation claims against Rudolph W. Giuliani, who, appearing on Fox News as a legal representative for Mr. Trump, said the technology company had “tried-and-true methods for fixing elections,” among other false assertions. Even so, Justice Cohen said there was “substantial” evidence that Mr. Giuliani “acted with actual malice insofar as he evinced a reckless disregard for the truth” and ruled that Smartmatic could try again. The judge allowed another part of Smartmatic’s defamation case against Mr. Giuliani to go forward.Fox News vowed a swift appeal.“While we are gratified that Judge Cohen dismissed Smartmatic’s claims against Jeanine Pirro at this early stage, we still plan to appeal the ruling immediately,” the network said in a statement. The network added that it would “continue to litigate these baseless claims by filing a counterclaim for fees and costs” under New York’s anti-SLAPP (strategic lawsuit against public participation) statute, which is meant to quickly set aside lawsuits that may be intended to chill free speech.Fox News said it would do so “to prevent the full-blown assault on the First Amendment which stands in stark contrast to the highest tradition of American journalism.”In dismissing the claim against Ms. Pirro, Justice Cohen said that while she had asserted on her show that Democrats “stole votes,” she had not specifically blamed Smartmatic’s software.A spokesman for Smartmatic did not reply to a request for comment.Fox News is also battling a related $1.6 billion defamation lawsuit from Dominion Voting Systems, which has accused the channel of advancing lies that devastated its reputation and business. A Delaware judge rejected an attempt by Fox News to dismiss Dominion’s lawsuit in December. More

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      Fox News Intensifies Its Pro-Trump Politics as Dissenters Depart

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      Donna Brazile, a Democratic analyst, has left the Murdoch-owned network as some hosts and journalists who questioned Donald Trump have exited or been sidelined.Fox News once devoted its 7 p.m. and 11 p.m. time slots to relatively straightforward newscasts. Now those hours are filled by opinion shows led by hosts who denounce Democrats and defend the worldview of former President Donald J. Trump. More

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      Dominion Sues Fox News, Claiming Defamation in Election Coverage

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      Dominion Voting Systems, an election technology company, accused the news channel of advancing lies that devastated its reputation and business.Fox News and its powerful owner, Rupert Murdoch, are facing a second major defamation suit over its coverage of the 2020 presidential election, a new front in the growing legal battle over media disinformation and its consequences.Dominion Voting Systems, an election technology company that was at the center of a baseless pro-Trump conspiracy about rigged voting machines, filed a lawsuit on Friday that accused Fox News of advancing lies that devastated its reputation and business.Dominion, which has requested a jury trial, is seeking at least $1.6 billion in damages. The lawsuit comes less than two months after Smartmatic, another election tech company, filed a $2.7 billion lawsuit against Mr. Murdoch’s Fox Corporation and named several Fox anchors, including Maria Bartiromo and Lou Dobbs, as defendants.In a 139-page complaint filed in Delaware Superior Court, Dominion’s legal team, led by the prominent defamation firm Clare Locke, portrayed Fox as an active player in spreading falsehoods that Dominion had altered vote counts and manipulated its machines to benefit Joseph R. Biden Jr. in the election.Those claims were false, but they were relentlessly pushed by President Donald J. Trump’s lawyers, Rudolph Giuliani and Sidney Powell, in public forums, including appearances on Fox programs. In January, Dominion sued Mr. Giuliani and Ms. Powell for defamation. The company also sued Mike Lindell, the chief executive of MyPillow and a Trump ally who was also a frequent guest on Fox programs, as well as shows on other conservative media outlets. Each of those suits seeks damages of more than $1 billion.“The truth matters,” Dominion’s lawyers wrote in Friday’s complaint against Fox. “Lies have consequences. Fox sold a false story of election fraud in order to serve its own commercial purposes, severely injuring Dominion in the process. If this case does not rise to the level of defamation by a broadcaster, then nothing does.”In a statement on Friday, Fox said that its 2020 election coverage “stands in the highest tradition of American journalism” and pledged to “vigorously defend against this baseless lawsuit in court.”Fox Corporation previously filed a motion to dismiss the Smartmatic lawsuit, arguing that the false claims of electoral fraud made on its channels were part of covering a fast-breaking story of significant public interest. “An attempt by a sitting president to challenge the result of an election is objectively newsworthy,” Fox’s legal team wrote in the motion.The narrative that Mr. Trump and his allies told about Dominion was among the more baroque creations of the president’s monthslong effort to cast doubt on the 2020 election results and persuade Americans that Mr. Biden’s victory was not legitimate.Dominion, which was founded in 2002, is one of the largest manufacturers of voting machine equipment in the United States, and its machines were used by election authorities in at least 28 states last year, including several states carried by Mr. Trump.Allies of Mr. Trump falsely portrayed the company as biased toward Mr. Biden and argued, without evidence, that it was tied to Hugo Chávez, the long-dead Venezuelan dictator. John Poulos, Dominion’s founder, and other employees received harassing and threatening messages from people convinced that the company had undermined the election results.Fox News and Fox Business programs were among the mass-media venues where Mr. Trump’s supporters denounced Dominion. The lawsuit also cites examples where the Fox hosts, including Ms. Bartiromo and Ms. Dobbs, uncritically repeated or actively vouched for the false claims made by Mr. Giuliani and Ms. Powell.“Fox took a small flame and turned it into a forest fire,” Dominion wrote in the lawsuit. “As the dominant media company among those viewers dissatisfied with the election results, Fox gave these fictions a prominence they otherwise would never have achieved.”Dominion’s lawyers on Friday also cited an unusual argument made by Ms. Powell in a motion, filed on Monday, to dismiss the separate Dominion suit against her.In that motion, Ms. Powell’s lawyers asserted that because political language is often inexact, “reasonable people” would not accept Ms. Powell’s baseless claims as facts. Ms. Powell — who never allowed in public appearances that she was anything less than confident in her assertions — was essentially arguing that her conspiratorial claims were self-evidently hyperbolic and therefore not defamatory.Dominion says it recently lost major contracts with election officials in Georgia and Louisiana, adding that the company is now facing “the hatred, contempt, and distrust of tens of millions of American voters.”Right-wing media has already faced a reckoning of sorts from the threat of defamation litigation, a relatively novel tactic in a battle against disinformation that had previously been limited to ad boycotts and liberal public pressure campaigns.In February, two days after Smartmatic filed its suit, Fox Business canceled “Lou Dobbs Tonight,” its highest rated program. Newsmax, a pro-Trump cable channel also facing potential legal action, cut off Mr. Lindell when he repeated falsehoods about rigged voting machines. More

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      Fox News Reports Profit Gain, Despite Ratings Drop

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      AdvertisementContinue reading the main storySupported byContinue reading the main storyFox News Reports Profit Gain, Despite Ratings DropThe media powerhouse remains a profit machine, but it faces challenges, including competition from newer outlets and a defamation suit against its parent company.Lachlan Murdoch, the chief executive of the Fox Corporation, said audience pullback after the election was expected.Credit…Mike Cohen for The New York TimesFeb. 9, 2021Updated 4:02 p.m. ETIf Rupert Murdoch’s Fox News is at all worried about recent ratings declines, the company hid its concern well. Mr. Murdoch’s powerhouse television business continues to see growth in revenue and profit, reporting gains on both areas in its quarterly earnings report announced Tuesday.Fox Corporation, led by Mr. Murdoch’s son Lachlan Murdoch, the chief executive, saw a 17 percent jump in pretax profit, to $305 million. It logged an 8 percent gain in sales, to $4 billion, for the three months ending in December, what the company considers its second fiscal quarter.Despite losing the ratings crown to CNN in recent weeks, Fox News is still a profit machine. The cable division saw a 1 percent gain in revenue, to $1.49 billion, and a 3 percent increase in pretax profit, to $571 million. Advertising increased 31 percent, to $441 million, but the fees paid by cable operators to carry the network fell 3 percent, to $928 million, as more people cut the cord.Lachlan Murdoch trumpeted the cable news network’s performance, downplaying the recent drop in viewership.“The Fox News Channel finished the quarter with its highest average ratings,” he said on an earnings call with analysts. “We are now seeing expected audience pullback since the election,” a phenomenon that he said was “consistent with prior election cycles.” He expects audiences to eventually return to the network.The company also announced a multiyear renewal contract for Suzanne Scott, the head of the network, dispelling any concerns that she may be replaced given its recent ratings performance.“Suzanne’s track record of success, innovative sprit and dedication to excellence make her the ideal person to continue to lead and grow Fox News,” Lachlan Murdoch said in a statement on Tuesday.The network did not disclose the exact length or financial terms of the deal.But hanging over the company’s financial future is a defamation lawsuit recently brought against Fox Corporation by a little-known technology provider. The suit, filed by Smartmatic, whose system was used in the presidential election in Los Angeles County, is seeking at least $2.7 billion in damages against Fox Corporation, Fox News and several of its prime-time stars for participating in “the conspiracy to defame and disparage Smartmatic and its election technology and software,” according to the suit.Mr. Trump and his supporters repeatedly described the election as “rigged,” and Fox News and its sister network Fox Business have given significant airtime to personalities and anchors who have sown doubt about the election results. The suit names the Fox anchors Maria Bartiromo, Lou Dobbs and Jeanine Pirro. Mr. Dobbs’s show was abruptly canceled last week, bringing his decade-long run at the company to an end.The financial penalty sought by Smartmatic appears to closely mirror the amount of profit Fox Corporation generates. For calendar year 2020, the company made about $3.1 billion in pretax earnings. Fox recently filed a motion to dismiss the suit.Fox News also faces competition from newer media outlets that tack even further to the right, such as OANN and Newsmax. Fox loyalists seemed to have turned on the network after it called the presidential election for Joseph R. Biden Jr., with some viewers flocking to competitors.When asked about the ratings declines and the impending battle for its core audience, Mr. Murdoch hesitated before answering.“In the journalism trade, you work out what your market is and produce the best product you can possibly produce,” he said. “At Fox News, the success of Fox News throughout its entire history has been to provide the absolute best news and opinion for a market that we believe is firmly center-right.”He seemed unconcerned about the rise in far-right news outlets that have seen record ratings in recent weeks.“We believe where we’re targeted to the center-right is exactly where we should be targeted,” he said. “We believe that’s where, politically, Americans are.”The company’s Fox broadcast stations helped drive much of the quarter’s growth as local networks saw record political advertising during the presidential election season. The broadcast division saw a 10 percent bump in ad dollars, to $1.8 billion.The addition of Tubi, the ad-supported free streaming service Fox acquired last year, also helped increase revenue to the TV unit. Although it is still a money-losing enterprise, Tubi is expected to double its revenue to about $300 million for the fiscal year ending in June, the company said.Michael Grynbaum contributed reporting.AdvertisementContinue reading the main story More

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      Fox Files Motion to Dismiss Smartmatic’s $2.7 Billion Lawsuit

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      AdvertisementContinue reading the main storySupported byContinue reading the main storyFox Files Motion to Dismiss Smartmatic’s $2.7 Billion Defamation SuitIn a court filing, Rupert Murdoch’s media company says it had the right to broadcast the debunked claims of election fraud promoted by President Donald Trump’s legal team on Fox News and Fox Business.The Manhattan headquarters for Rupert Murdoch’s American media companies Fox Corporation, home of Fox News and Fox Business, and News Corp.Credit…Drew Angerer/Getty ImagesMichael M. Grynbaum and Feb. 8, 2021Rupert Murdoch’s Fox Corporation on Monday filed a motion to dismiss the $2.7 billion defamation lawsuit brought against it last week by the election technology company Smartmatic, which has accused Mr. Murdoch’s cable networks and three Fox anchors of spreading falsehoods that the company tried to rig the presidential race against Donald J. Trump.The lawsuit has roiled right-wing news media outlets whose star personalities repeatedly cast doubt on Joseph R. Biden Jr.’s victory in the wake of the election and raised the specter of a significant financial penalty for Fox. On Friday, the day after the lawsuit was filed, Fox canceled the nightly Fox Business program hosted by Lou Dobbs, who is named in the suit along with the Fox anchors Maria Bartiromo and Jeanine Pirro.In its 44-page response filed in New York State Supreme Court, Fox argues that the claims of electoral fraud made on its channels by Mr. Trump’s lawyers — including Rudolph W. Giuliani and Sidney Powell, who are also named in the defamation suit — were matters of significant interest to viewers and handled fairly.“This lawsuit strikes at the heart of the news media’s First Amendment mission to inform on matters of public concern,” Fox says in the motion, adding, “An attempt by a sitting president to challenge the result of an election is objectively newsworthy.”Paul D. Clement, a partner in the Washington office of the law firm Kirkland & Ellis who served as solicitor general under President George W. Bush, is leading Fox’s defense. “Smartmatic’s theory is fundamentally incompatible with the reality of the modern news network and deeply rooted principles of free speech law,” Mr. Clement said in a statement.A spokesman for Smartmatic did not immediately reply to a request for comment.“It’s a strong move on their part to try to come out and dismiss the claim,” said Timothy Zick, a professor at William & Mary Law School who specializes in First Amendment law.Mr. Zick said that Fox was making use of the concept of “neutral reportage,” arguing that it could not be sued for defamation while covering the news. “They’re arguing that shields Fox News as an organization for simply reporting on the controversy, which is a matter of public interest,” he said.A key to Fox’s defense is the argument that it cannot be held responsible for statements made on its programs by Mr. Giuliani and Ms. Powell, given their roles as Mr. Trump’s legal representatives.“The public had a right to know, and Fox had a right to cover, that the president and his allies were accusing Smartmatic (and others) of manipulating the election results, regardless of the ultimate truth or accuracy of those allegations,” the motion reads. It also asserts that Smartmatic’s suit does not identify defamatory statements by television hosts employed by Mr. Murdoch’s company.Fox also argues that Smartmatic should be considered a public figure. That argument, which is likely to be contested by the tech company, means that Smartmatic must meet a high bar to prove that it was defamed: demonstrating that the defendants knew their statements were false, or at least had serious doubts about them.Smartmatic’s 276-page lawsuit alleges that Mr. Trump’s lawyers used Fox’s platform, and its sympathetic anchors, to spin conspiracies about the company that damaged its reputation and commercial prospects. The suit has been applauded by those seeking to curb the flow of disinformation from right-wing news outlets, but it has also raised questions about the limits of speech in a changing media landscape.Fox’s argument in its motion — that it provided a forum for newsworthy interviews — may cut into the conceptual heart of Smartmatic’s case, which groups Fox, its hosts and their guests as defendants who collaborated to spread falsehoods.The defamation lawsuit cites exchanges on Fox programs that, Smartmatic said, helped spread the false claim that it was the owner of a rival election tech company, Dominion Voting System, and that it provided its services to districts in multiple contested states. In fact, Smartmatic was used in the 2020 election only by Los Angeles County.And Smartmatic offers vivid examples of Fox programming that spread bizarre falsehoods, like a claim by Ms. Powell made on Mr. Dobbs’s show that the former president of Venezuela, Hugo Chávez, had assisted the company in creating software that could covertly alter votes. (Mr. Chávez died in 2013 and had nothing to do with Smartmatic.)In other exchanges cited by Smartmatic, Fox anchors alternately expressed support and astonishment as Mr. Giuliani and Ms. Powell spun out their claims. In one case, a phrase used by Ms. Powell — “cyber Pearl Harbor” — was later invoked by Mr. Dobbs on his show and on social media.Fox’s response on Monday included a 14-page appendix under the title “Fox’s Evenhanded Coverage of Smartmatic,” documenting instances from Fox News and Fox Business that the company believes showed skepticism toward the Trump team’s claims.Among the examples are three identical, pretaped fact-checking segments that ran in mid-December on programs hosted by Ms. Bartiromo, Mr. Dobbs and Ms. Pirro and that featured Eddie Perez, an election expert who debunked a number of false claims about Smartmatic.The segments were broadcast after Smartmatic sent a letter to Fox demanding retractions and threatening legal action.AdvertisementContinue reading the main story More