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    Inside the Panic at Fox News After the 2020 Election

    “If we hadn’t called Arizona,” said Suzanne Scott, the network’s chief executive, according to a recording reviewed by The New York Times, “our ratings would have been bigger.”WASHINGTON — A little more than a week after television networks called the 2020 presidential election for Joseph R. Biden Jr., top executives and anchors at Fox News held an after-action meeting to figure out how they had messed up.Not because they had gotten the key call wrong — but because they had gotten it right. And they had gotten it right before anyone else.Typically, it is a point of pride for a news network to be the first to project election winners. But Fox is no typical news network, and in the days following the 2020 vote, it was besieged with angry protests not only from President Donald J. Trump’s camp but from its own viewers because it had called the battleground state of Arizona for Mr. Biden. Never mind that the call was correct; Fox executives worried that they would lose viewers to hard-right competitors like Newsmax.And so, on Monday, Nov. 16, 2020, Suzanne Scott, the chief executive of Fox News Media, and Jay Wallace, the network’s president, convened a Zoom meeting for an extraordinary discussion with an unusual goal, according to a recording of the call reviewed by The New York Times: How to keep from angering the network’s conservative audience again by calling an election for a Democrat before the competition.Maybe, the Fox executives mused, they should abandon the sophisticated new election-projecting system in which Fox had invested millions of dollars and revert to the slower, less accurate model. Or maybe they should base calls not solely on numbers but on how viewers might react. Or maybe they should delay calls, even if they were right, to keep the audience in suspense and boost viewership.“Listen, it’s one of the sad realities: If we hadn’t called Arizona, those three or four days following Election Day, our ratings would have been bigger,” Ms. Scott said. “The mystery would have been still hanging out there.”Bret Baier and Martha MacCallum, the two main anchors, suggested it was not enough to call a state based on numerical calculations, the standard by which networks have made such determinations for generations, but that viewer reaction should be considered. “In a Trump environment,” Ms. MacCallum said, “the game is just very, very different.”The conversation captured the sense of crisis enveloping Fox after the election and underscored its unique role in the conservative political ecosystem. The network’s conduct in this period has come under intense scrutiny in a $1.6 billion defamation lawsuit by Dominion Voting Systems.Court filings in recent days revealed that Fox executives and hosts considered fraud claims by the Trump camp to be “really crazy stuff,” as Rupert Murdoch, the head of the Fox media empire, put it, yet pushed them on air anyway. The recording of the Nov. 16 meeting adds further context to the atmosphere inside the network at that time, when executives were on the defensive because of their Arizona call and feared alienating Mr. Trump and his supporters.In a statement on Saturday, the network said: “Fox News stood by the Arizona call despite intense scrutiny. Given the extremely narrow 0.3 percent margin and a new projection mechanism that no other network had, of course there would be a wide-ranging post-mortem surrounding the call and how it was executed no matter the candidates.”More on Fox NewsRupert Murdoch’s Deposition: The conservative media mogul acknowledged in a $1.6 billion defamation lawsuit that several Fox News hosts promoted the false narrative that the 2020 election was stolen.Privately Expressing Disbelief: Dozens of text messages released in the lawsuit show how Fox hosts went from privately criticizing election fraud claims to giving them significant airtime.‘American Nationalist’: Tucker Carlson stoked white fear to conquer cable news. In the process, the TV host transformed Fox News and became former President Donald J. Trump’s heir.Empire of Influence: ​​A Times investigation looked at how the Murdochs, the family behind a global media empire that includes Fox News, have destabilized democracy on three continents.In the cross hairs now is Ms. Scott, who joined the network at its inception in 1996 as a programming assistant and worked her way up to become chief executive in 2018. Media analysts have speculated that she may take the fall; Mr. Murdoch testified in a deposition that executives who knowingly allowed lies to be broadcast “should be reprimanded, maybe got rid of.” But Fox later put out word that she was not in danger.Ms. Scott was among the executives who grew alarmed after the network’s Decision Desk called Arizona for Mr. Biden at 11:20 p.m. on election night on Nov. 3, 2020, a projection that infuriated Mr. Trump and his aides because it was a swing state that could foreshadow the overall result. No other network called Arizona that night, although The Associated Press did several hours later, and the Fox journalists who made the call stood by their judgment.At 8:30 the next morning, Ms. Scott suggested Fox not call any more states until certified by authorities, a formal process that could take days or weeks. She was talked out of that. But the next day, with Mr. Biden’s lead in Arizona narrowing, Mr. Baier noted that Mr. Trump’s campaign was angry and suggested reversing the call. “It’s hurting us,” he wrote Mr. Wallace and others in a previously reported email. “The sooner we pull it even if it gives us major egg. And put it back in his column. The better we are. In my opinion.”Suzanne Scott joined Fox News at its inception in 1996 as a programming assistant and worked her way up to become chief executive in 2018. Alexi Rosenfeld/Getty ImagesArizona had never been in Mr. Trump’s column, and the Decision Desk overseen by Bill Sammon, the managing editor for Washington, resisted giving it “back” to a candidate who was losing just to satisfy critics.But on Friday night, Nov. 6, when Mr. Sammon’s team was ready to call Nevada for Mr. Biden, sealing his victory, Mr. Wallace refused to air it. “I’m not there yet since it’s for all the marbles — just a heavier burden than an individual state call,” Mr. Wallace wrote in a text message obtained by The Times.Rather than be the first to call the election winner, Fox became the last. CNN declared Mr. Biden the victor the next day at 11:24 a.m., followed by the other networks. Fox did not concur until 11:40 a.m., some 14 hours after Mr. Sammon’s election team internally concluded the race was over..css-1v2n82w{max-width:600px;width:calc(100% – 40px);margin-top:20px;margin-bottom:25px;height:auto;margin-left:auto;margin-right:auto;font-family:nyt-franklin;color:var(–color-content-secondary,#363636);}@media only screen and (max-width:480px){.css-1v2n82w{margin-left:20px;margin-right:20px;}}@media only screen and (min-width:1024px){.css-1v2n82w{width:600px;}}.css-161d8zr{width:40px;margin-bottom:18px;text-align:left;margin-left:0;color:var(–color-content-primary,#121212);border:1px solid var(–color-content-primary,#121212);}@media only screen and (max-width:480px){.css-161d8zr{width:30px;margin-bottom:15px;}}.css-tjtq43{line-height:25px;}@media only screen and (max-width:480px){.css-tjtq43{line-height:24px;}}.css-x1k33h{font-family:nyt-cheltenham;font-size:19px;font-weight:700;line-height:25px;}.css-1hvpcve{font-size:17px;font-weight:300;line-height:25px;}.css-1hvpcve em{font-style:italic;}.css-1hvpcve strong{font-weight:bold;}.css-1hvpcve a{font-weight:500;color:var(–color-content-secondary,#363636);}.css-1c013uz{margin-top:18px;margin-bottom:22px;}@media only screen and (max-width:480px){.css-1c013uz{font-size:14px;margin-top:15px;margin-bottom:20px;}}.css-1c013uz a{color:var(–color-signal-editorial,#326891);-webkit-text-decoration:underline;text-decoration:underline;font-weight:500;font-size:16px;}@media only screen and (max-width:480px){.css-1c013uz a{font-size:13px;}}.css-1c013uz a:hover{-webkit-text-decoration:none;text-decoration:none;}What we consider before using anonymous sources. Do the sources know the information? What’s their motivation for telling us? Have they proved reliable in the past? Can we corroborate the information? Even with these questions satisfied, The Times uses anonymous sources as a last resort. The reporter and at least one editor know the identity of the source.Learn more about our process.While Mr. Biden held onto Arizona by 10,000 votes, the explosive fallout from the Fox call panicked the network. Viewers erupted. Ratings fell. “I’ve never seen a reaction like this, to any media company,” Tucker Carlson told Ms. Scott in a Nov. 9 message released in a court filing. Ms. Scott complained to a colleague that Mr. Sammon did not understand “the impact to the brand and the arrogance in calling AZ” and it was his job “to protect the brand.”On Nov. 16, Ms. Scott and Mr. Wallace convened the Zoom meeting to discuss the Arizona decision. Mr. Sammon and Arnon Mishkin, the director of the Decision Desk, were included. Chris Stirewalt, the political editor who had gone on air to defend the call, was not.Ms. Scott invited Mr. Baier and Ms. MacCallum, “the face” of the network, as she called them, to describe the heat they were taking, according to the recording reviewed by The Times.“We are still getting bombarded,” Mr. Baier said. “It became really hurtful.” He said projections were not enough to call a state when it would be so sensitive. “I know the statistics and the numbers, but there has to be, like, this other layer” so they could “think beyond, about the implications.”Ms. MacCallum agreed: “There’s just obviously been a tremendous amount of backlash, which is, I think, more than any of us anticipated. And so there’s that layer between statistics and news judgment about timing that I think is a factor.” For “a loud faction of our viewership,” she said, the call was a blow.Neither she nor Mr. Baier explained exactly what they meant by another “layer.” A person who was in the meeting and spoke on condition of anonymity to describe internal discussions said on Saturday that Mr. Baier had been talking about process because he was upset the Decision Desk had made the Arizona call without letting the anchors know first.Fox reached its call earlier than other networks because of the cutting-edge system that it developed after the 2016 election, a system tested during the 2018 midterm elections with great success — Fox projected that Democrats would capture the House before its competitors. But now Mr. Wallace was having second thoughts.“We created a new mousetrap,” he said. But he asked, “Was the mousetrap too good?” He added: “Part of me is like: Oh, should we have been more conservative and should we have stuck with N.E.P.,” the National Election Pool used by other networks. “Would that have changed things? Would there still be this ire?”Mr. Mishkin acknowledged that the Arizona call seemed “premature” but noted that “it did land correctly” and that Fox rightly made clear it was “a dogfight in the Electoral College.” Mr. Sammon stood by the call. “If I may defend the Decision Desk for a moment, they got all 50 states right,” he said. “We called Arizona. It was a good call. It held up.”Ms. Scott pressed Mr. Sammon to admit that Arizona “became much closer than even you anticipated it becoming.”He pushed back. “From a statistical standpoint,” he said, “I literally never worried about the Arizona call. From a lot of other standpoints it was very painful for reasons that we’re all aware of. But statistically, I really was very confident in that call. That’s just the truth.”Ms. Scott agreed it was important to be right. “But I think we’re living in a new world in a sense, where half of the voting population doesn’t believe in big corporations, big tech, big media,” she said. “There’s a lack of trust. And when they feel like things are being done behind closed doors in rooms that they can’t understand, it exacerbates the emotion and how they feel about the process.”Tom Lowell, the managing editor for news, said Fox had been left “as the canary in this nasty coal mine,” suggesting other networks had deliberately delayed calls out of malice. “I think some outlets willfully held back calls that they probably could have made to watch us twist in the wind,” he said.An early voting venue in Arizona. Fox News was the first to call the state for Joseph R. Biden Jr. in 2020, thanks to its new multimillion-dollar election-projecting system.Adriana Zehbrauskas for The New York TimesMs. Scott asserted that CNN had delayed to hold viewer attention. “CNN historically I think has always been late because — purely for ratings,” she said. “And I think you have to ask yourself, is that a good enough reason? Trust, public trust, viewership, I mean there’s different parameters.”She added that she was merely “raising the questions” about holding back calls. “There is a philosophy around that.” (Matt Dornic, a CNN spokesman, on Saturday denied holding back calls for ratings, saying its journalists “make calls as soon as we’re confident they’re right.”)The Arizona dispute was not an abstract discussion. Georgia would soon hold runoff elections for two Senate seats that would determine control of the chamber. The question was raised about how to call those races given that Republicans seemed favored to win.“If we’re going to be first to call the Senate for G.O.P. control, that’s OK too,” Mr. Baier said, prompting awkward laughs. (The person in the meeting said Mr. Baier was joking.)What no one said at the meeting was that Ms. Scott would not let Mr. Sammon’s team risk the network’s brand again. She decided to push out Mr. Sammon and Mr. Stirewalt, but fearing criticism for firing journalists who had gotten the call right, opted to wait until after Georgia.Mr. Murdoch was not keen on waiting. On Nov. 20, four days after the Zoom meeting, according to documents filed by Dominion, he told Ms. Scott, “Maybe best to let Bill go right away,” which would “be a big message with Trump people.”Mr. Sammon, who had called every election correctly over 12 years at Fox and had just been offered a new three-year contract, was told that same day that his contract would not be renewed after all. He heard not from Fox but from his lawyer, Robert Barnett. Mr. Stirewalt was out too.Fox would, in the end, wait until after Georgia to announce the purge, without attributing it to the Arizona call. Mr. Sammon, who negotiated a severance package, would call his departure a “retirement,” while Stirewalt’s dismissal was characterized as a “restructuring.”Three weeks later, Fox announced a new multiyear contract extension for Ms. Scott. More

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    Fox Leaders Wanted to Break From Trump but Struggled to Make It Happen

    Executives and top hosts found themselves in a bind after Donald Trump began pushing unfounded claims about election fraud, court filings show.Five days after a pro-Trump mob attacked the U.S. Capitol, a board member of the Fox Corporation, Anne Dias, reached out to Rupert and Lachlan Murdoch with an urgent plea.“Considering how important Fox News has been as a megaphone for Donald Trump,” she said, it was time “to take a stance.” Ms. Dias, who sounded shaken by the riot, said she thought Fox News and the nation faced “an existential moment.”As quickly as the two Murdochs began discussing how to respond, their bind became evident.“Just tell her we have been talking internally and intensely,” Rupert Murdoch, whose family controls the company, wrote in an email. Fox News, he told his son, “is pivoting as fast as possible.” But he sounded a note of caution: “We have to lead our viewers, which is not as easy as it might seem.”Ever since Donald J. Trump announced his presidential campaign in 2015, Rupert Murdoch and his Fox News Channel have struggled with how to handle the man and the movement they helped create.“Navigating” the delicate balance between truth and “crazy” was how Mr. Murdoch described his challenge in emails made public this week as part of Dominion Voting Systems’ $1.6 billion defamation lawsuit against Fox News, which is expected to go to trial in April.For the most part, Mr. Murdoch has been wildly successful at striking the balance. Fox converted Mr. Trump’s mass following into loyal viewers who deliver Mr. Murdoch and his shareholders huge profits.A 2018 headline about President Donald J. Trump that was displayed outside Fox News studios in New York.Mark Lennihan/Associated PressBut the emails among the Murdochs and the senior leadership of their companies, along with depositions of both men as part of the case, revealed just how Fox and its leaders strained to push back against Mr. Trump when he began spreading unfounded claims about widespread election fraud.The leadership of Fox and its star hosts are often viewed from the outside as power brokers in Republican politics — with much justification. But in the wake of the election, they appeared fearful of alienating Mr. Trump’s supporters, almost to the point of powerlessness, court filings containing internal communications and depositions show.Privately, the executives and hosts expressed despair and disgust at the Trump associates who were using Fox News’s platforms to spread bogus allegations of voter fraud. Yet the wishes of the audience — or how the network’s executives interpreted them — dictated which guests were booked, what kind of new programming was created, what correspondents could say on the air and even which people lost their jobs, according to the details in a 212-page brief that Dominion filed in a Delaware state court this week.Understand the Events on Jan. 6Timeline: On Jan. 6, 2021, 64 days after Election Day 2020, a mob of supporters of President Donald J. Trump raided the Capitol. Here is a close look at how the attack unfolded.A Day of Rage: Using thousands of videos and police radio communications, a Times investigation reconstructed in detail what happened — and why.Lost Lives: A bipartisan Senate report found that at least seven people died in connection with the attack.Jan. 6 Attendees: To many of those who attended the Trump rally but never breached the Capitol, that date wasn’t a dark day for the nation. It was a new start.Fox News has expressed confidence that Dominion’s claims will fall apart once their full context becomes apparent at the trial. “Dominion blatantly misconstrued the facts by cherry-picking sound bites, omitting key context and mischaracterizing the record,” a Fox News spokeswoman said.As it became evident that some of Fox’s audience was turning against it after it projected President Biden’s victory, and viewers started switching to hard-right alternatives like Newsmax, people inside the network scrambled to stanch the bleeding.Even as executives raised concerns about Mr. Trump to one another, they came down hard on those seen as too tough on him.Eleven days after the election, for instance, Lachlan Murdoch became irritated watching the Fox News correspondent Leland Vittert’s reporting on a pro-Trump rally in Washington, considering it too critical. Mr. Murdoch called Mr. Vittert’s coverage “smug and obnoxious” in a message to Suzanne Scott, chief executive of Fox News Media. Ms. Scott responded that she was “calling now,” to direct someone to relay the message to the correspondent and his producer.As word of Mr. Murdoch’s complaint made its way down the food chain, the executive in charge of Fox’s weekend programming, David Clark, also weighed in, telling a colleague in an email that he had texted Mr. Vittert “and told him to cut it out.”To Lachlan Murdoch, there seemed to be no detail too small to complain about if he believed it was hurting the bond that Fox News had forged with its audience over the years. He also complained to Ms. Scott at one point about what he saw as the negative tone toward Mr. Trump in the chyron — the block of text that appears at the bottom of the screen. It was too wordy, he said, and too negative about the president.Lachlan Murdoch complained that a Fox News reporter’s coverage of a pro-Trump rally was “smug and obnoxious.”Mike Cohen for The New York TimesRupert Murdoch offered Ms. Scott suggestions on booking guests who were known to Trump supporters as loyal defenders. One person he proposed in late November 2020 was the former national security adviser Michael T. Flynn, who had pleaded guilty in 2017 to lying to federal investigators about his contacts with a Russian ambassador. A week after Mr. Murdoch sent his note, Dominion’s filing says, Mr. Flynn appeared on Maria Bartiromo’s Fox Business program.The elder Mr. Murdoch also told Ms. Scott to get rid of a senior Fox News manager, Bill Sammon, telling her that it would go a long way with the former president’s core supporters. “Maybe best to let Bill go right away,” he told Ms. Scott on Nov. 20. Mr. Sammon ran the network’s Washington bureau and oversaw the unit that was responsible for Fox’s early — and correct — decision to project that Mr. Biden would win Arizona. That call had infuriated Mr. Trump and his supporters.Mr. Murdoch explained to Ms. Scott that the firing would “be a big message with Trump people.” According to the Dominion brief, Mr. Sammon was told that he was being let go that same day.As Fox executives stamped out skepticism of Mr. Trump in the network’s coverage, they also grew disillusioned with the increasing amount of “crazy” on their airwaves, as Rupert Murdoch described the Trump legal adviser Sidney Powell in an email to a friend, according to the legal filings. By early December 2020, as Mr. Trump’s claims of being cheated grew more far-fetched, Mr. Murdoch acknowledged how difficult it had become to continue delivering coverage that didn’t insult loyal, pro-Trump viewers without stating the obvious: The president was lying to them about his loss.In one message to Ms. Scott, Mr. Murdoch lamented Mr. Trump’s performance at a rally in Georgia where he called for Gov. Brian Kemp to help overturn the election, as well as other recent comments from the president. “All making it harder to straddle the issue! We should talk through this,” he wrote.After Jan. 6, 2021, as hopes among many conservatives skeptical of Mr. Trump swelled that the Republican Party might finally be done with him, some of his biggest stalwarts inside Fox News seemed to be backing away from him — even the host Sean Hannity, one of Mr. Trump’s most dedicated on-air supporters, according to Mr. Murdoch’s emails.“Wake-up call for Hannity,” Mr. Murdoch wrote in an email on Jan. 12, 2021, to Paul D. Ryan, the former Republican speaker of the House and a Fox Corporation board member. Mr. Murdoch explained that the host had been “privately disgusted by Trump for weeks, but was scared to lose viewers.”For a time, at least. It did not take long for Mr. Hannity and other prime-time hosts, including Tucker Carlson, to begin talking about the attack and its aftermath as Mr. Trump and his supporters preferred.In the opening monologue of one of his shows in June 2022, with a congressional investigation into the assault in full swing, Mr. Hannity told his audience, “January 6 is just another excuse to smear Donald Trump and anyone who supports them.” More

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    Fox Stars Privately Expressed Disbelief About Trump’s Election Fraud Claims

    The comments, by Tucker Carlson, Sean Hannity and others, were released as part of a defamation suit against Fox News by Dominion Voter Systems.Newly disclosed messages and testimony from some of the biggest stars and most senior executives at Fox News revealed that they privately expressed disbelief about President Donald J. Trump’s false claims that the 2020 election was stolen from him, even though the network continued to promote many of those lies on the air.The hosts Tucker Carlson, Sean Hannity and Laura Ingraham, as well as others at the company, repeatedly insulted and mocked Trump advisers, including Sidney Powell and Rudolph W. Giuliani, in text messages with each other in the weeks after the election, according to a legal filing on Thursday by Dominion Voting Systems. Dominion is suing Fox for defamation in a case that poses considerable financial and reputational risk for the country’s most-watched cable news network.“Sidney Powell is lying by the way. I caught her. It’s insane,” Mr. Carlson wrote to Ms. Ingraham on Nov. 18, 2020.Ms. Ingraham responded: “Sidney is a complete nut. No one will work with her. Ditto with Rudy.”Mr. Carlson continued, “Our viewers are good people and they believe it,” he added, making clear that he did not.The messages also show that such doubts extended to the highest levels of the Fox Corporation, with Rupert Murdoch, its chairman, calling Mr. Trump’s voter fraud claims “really crazy stuff.”On one occasion, as Mr. Murdoch watched Mr. Giuliani and Ms. Powell on television, he told Suzanne Scott, chief executive of Fox News Media, “Terrible stuff damaging everybody, I fear.”Dominion’s brief depicts Ms. Scott, whom colleagues have described as sharply attuned to the sensibilities of the Fox audience, as being well aware that Mr. Trump’s claims were baseless. And when another Murdoch-owned property, The New York Post, published an editorial urging Mr. Trump to stop complaining that he had been cheated, Ms. Scott distributed it widely among her staff. Mr. Murdoch then thanked her for doing so, the brief says.The filing, in state court in Delaware, contains the most vivid and detailed picture yet of what went on behind the scenes at Fox News and its corporate parent in the days and weeks after the 2020 election, when the conservative cable network’s coverage took an abrupt turn.Fox News stunned the Trump campaign on election night by becoming the first news outlet to declare Joseph R. Biden Jr. the winner of Arizona — effectively projecting that he would become the next president. Then, as Fox’s ratings fell sharply after the election and the president refused to concede, many of the network’s most popular hosts and shows began promoting outlandish claims of a far-reaching voter fraud conspiracy involving Dominion machines to deny Mr. Trump a second term.What was disclosed on Thursday was not the full glimpse of Dominion’s case against Fox. The 192-page filing had multiple redactions that contain more revelations about deliberations inside the network. Fox has sought to keep much of the evidence against it under seal. The New York Times is challenging the legality of those redactions in court.More on Fox NewsDefamation Case: ​​Some of the biggest names at Fox News are being questioned in the $1.6 billion lawsuit filed by Dominion Voting Systems against the network. The suit could be one of the most consequential First Amendment cases in a generation.Merger Falls Through: Rupert Murdoch has halted his plans to combine News Corp and Fox Corporation, saying that a merger was “not optimal for shareholders.” The prospect had faced significant investor pushback.‘American Nationalist’: Tucker Carlson stoked white fear to conquer cable news. In the process, the TV host transformed Fox News and became former President Donald J. Trump’s heir.Empire of Influence: ​​A Times investigation looked at how the Murdochs, the family behind a global media empire that includes Fox News, have destabilized democracy on three continents.In its defense, which was also filed with the court on Thursday, Fox argued that by covering Mr. Trump’s fraud claims, the network was doing what any media organization would: reporting and commenting on a matter of undeniable newsworthiness. And it noted that many of its programs did not endorse the claim that the election was stolen.“In its coverage, Fox News fulfilled its commitment to inform fully and comment fairly,” its brief said. “Some hosts viewed the president’s claims skeptically; others viewed them hopefully; all recognized them as profoundly newsworthy.”The law shields journalists from liability if they report on false statements, but not if they promote them.Dominion said in its filing that not a single Fox witness had testified that he or she believed any of the allegations about Dominion.In a statement on Thursday, a Fox spokeswoman said, “Dominion has mischaracterized the record, cherry-picked quotes stripped of key context and spilled considerable ink on facts that are irrelevant under black-letter principles of defamation law.”The brief shows that Fox News stars and executives were afraid of losing their audience, which started to defect to the conservative cable news alternatives Newsmax and OAN after Fox News called Arizona for Mr. Biden. And they seemed concerned with the impact that would have on the network’s profitability. On Nov. 12, in a text chain with Ms. Ingraham and Mr. Hannity, Mr. Carlson pointed to a tweet in which a Fox reporter, Jacqui Heinrich, fact-checked a tweet from Mr. Trump referring to Fox broadcasts and said there was no evidence of voter fraud from Dominion.“Please get her fired,” Mr. Carlson said. He added: “It needs to stop immediately, like tonight. It’s measurably hurting the company. The stock price is down. Not a joke.” Ms. Heinrich had deleted her tweet by the next morning.The details offer more than dramatic vignettes from inside a news organization where internal disputes rarely spill into public view. They are pieces of evidence that a jury could use to weigh whether to find Fox liable for significant financial damages. Dominion is asking for $1.6 billion as compensation for the damage it says it suffered as Fox guests and hosts claimed, for instance, that Dominion’s voting machines had been designed to rig elections for the Venezuelan autocrat Hugo Chavez and were equipped with an algorithm that could erase votes from one candidate and give them to another.Fox Corporation has about $4 billion cash on hand, according to its latest quarterly earnings report.The burden in the case falls on Dominion to prove that Fox acted with actual malice — the longstanding legal standard that requires Dominion to prove that either Fox guests, hosts and executives knew what was being said on the air was false and allowed it anyway, or that people inside Fox were recklessly negligent in failing to check the accuracy of their coverage.That burden is difficult to meet, which is why defamation cases often fail. But legal experts said Dominion’s arguments were stronger than most.“This filing argues a fire hose of direct evidence of knowing falsity,” said RonNell Andersen Jones, a professor of law at the S.J. Quinney College of Law at the University of Utah. “It gives a powerful preview of one of the best-supported claims of actual malice we have seen in any major-media case.”Many defamation suits are quickly dismissed because of the First Amendment’s broad free speech protections. If they do go forward, they are usually settled out of court to spare both sides the costly spectacle of a trial. The Dominion case has proceeded with a speed and scope that media experts have said is unusual.For eight months, Dominion lawyers have taken depositions from dozens of people at all levels of the network and its parent company. Mr. Murdoch was deposed last month. (Dominion’s brief was written before that deposition and does not reflect its contents, which remain under seal.) Mr. Hannity, one of the most popular prime-time hosts and a close Trump ally, has been deposed twice. And the personal phones and emails of many midlevel employees have been searched as part of the discovery process, which people inside the company have said has created an atmosphere of considerable unease.Both sides appear dug in and confident of victory. The judge has scheduled jury selection to begin in mid-April.Fox has contested how Dominion arrived at the amount it is seeking in damages, arguing that the company has vastly overstated its valuation and the reputational harm it suffered.In papers filed with the court on Thursday, lawyers for Fox called the $1.6 billion sum “a staggering figure that has no factual support and serves no apparent purpose other than to generate headlines, chill First Amendment-protected speech.”Fox’s lawyers added that Staple Street Capital Partners, the private equity firm that owns a majority share in Dominion, had paid about $38 million for its 76 percent stake in the company in 2018 and had never estimated Dominion’s financial value to be worth “anywhere near $1.6 billion.” Fox has made a counterclaim against Dominion seeking to recover all its costs associated with the lawsuit.Dominion’s goal, aside from convincing a jury that Fox knowingly spread lies, is to build a case that points straight to the top of the Fox media empire and its founding family, the Murdochs.“Fox knew,” the Dominion filing declares. “From the top down, Fox knew.”The brief cites senior executives and editors responsible for shaping Fox’s coverage behind the scenes who weren’t buying the election denial, either.“No reasonable person would have thought that,” said the network’s politics editor at the time, Chris Stirewalt, referring to the allegation that Dominion rigged the election. Bill Sammon, Fox’s managing editor in Washington, is quoted as saying, “It’s remarkable how weak ratings make good journalists do bad things.”Fox pushed out both journalists after the 2020 election.Ron Mitchell, a senior Fox executive who oversaw the Carlson, Hannity and Ingraham shows, texted privately with colleagues that the Dominion allegations were “the Bill Gates/microchip angle to voter fraud,” referring to false claims that microchips were injected into people who received Covid-19 vaccines.At times, Fox employees are described as disparaging one another. The president of the network, Jay Wallace, is quoted at one point criticizing the former Fox Business host Lou Dobbs — one of the biggest megaphones for Mr. Trump’s lies. “The North Koreans do a more nuanced show” than Mr. Dobbs, the brief says.On Nov. 6, 2020, three days after Election Day, as Mr. Biden pulled into the lead, Mr. Murdoch told Ms. Scott in an email that it was going to be “very hard to credibly cry foul everywhere,” and noted that “if Trump becomes a sore loser, we should watch Sean especially,” referring to Mr. Hannity. More

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    Defamation Suit Against Fox Grows More Contentious

    Lachlan Murdoch is set to be deposed on Monday, the latest in a flurry of activity in the high-stakes case.Lachlan Murdoch, the chief executive of the Fox Corporation, is expected to be deposed on Monday as part of a $1.6 billion defamation lawsuit against Fox News for amplifying bogus claims that rigged machines from Dominion Voting Systems were responsible for Donald J. Trump’s defeat in 2020.Mr. Murdoch will be the most senior corporate figure within the Fox media empire to face questions under oath in the case so far. And his appearance before Dominion’s lawyers is a sign of how unexpectedly far and fast the lawsuit has progressed in recent weeks — and how contentious it has become.Fox and Dominion have gone back and forth in Delaware state court since the summer in an escalating dispute over witnesses, evidence and testimony. The arguments point to the high stakes of the case, which will render a judgment on whether the most powerful conservative media outlet in the country intentionally misled its audience and helped seed one of the most pervasive lies in American politics.Although the law leans in the media’s favor in defamation cases, Dominion has what independent observers have said is an unusually strong case. Day after day, Fox hosts and guests repeated untrue stories about Dominion’s ties to communist regimes and far-fetched theories about how its software enabled enemies of the former president to steal his votes.“This is a very different kind of case,” said David A. Logan, dean of the Roger Williams School of Law, who has argued in favor of loosening some libel laws. “Rarely do cases turn on a weekslong pattern of inflammatory, provably false, but also oddly inconsistent statements.”Dominion, in its quest to obtain the private communications of as many low-, mid- and high-level Fox personnel as possible, hopes to prove that people inside the network knew they were disseminating lies. Fox hopes to be able sow doubt about that by showing how its hosts pressed Trump allies for evidence they never produced and that Dominion machines were vulnerable to hacking, even if no hacking took place.The judge, Eric M. Davis, has ruled in most instances in Dominion’s favor, allowing the voting company to expand the pool of potential evidence it can present to a jury to include text messages from the personal phones of Fox employees and the employment contracts of star hosts such as Sean Hannity and Tucker Carlson, along with those of Suzanne Scott, the chief executive of Fox News Media, and her top corporate managers.More on Fox NewsDefamation Case: ​​Some of the biggest names at Fox News are being questioned in the $1.6 billion lawsuit filed by Dominion Voting Systems against the network. The suit could be one of the most consequential First Amendment cases in a generation.Exploring a Merger: Fox and News Corp, the two sides of Rupert Murdoch’s media business, are weighing a proposal that could put Fox News, The Wall Street Journal and the Fox broadcasting network under the same corporate umbrella.‘American Nationalist’: Tucker Carlson stoked white fear to conquer cable news. In the process, the TV host transformed Fox News and became former President Donald J. Trump’s heir.Empire of Influence: ​​A Times investigation looked at how the Murdochs, the family behind a global media empire that includes Fox News, have destabilized democracy on three continents.Dominion has conducted dozens of depositions with current and former network personalities, producers, business managers and executives. The people questioned come from the rungs of middle management at Fox News headquarters in Manhattan to the corner office in Century City, Los Angeles, where Mr. Murdoch oversees the Fox Corporation and its sprawling enterprise of conservative media outlets.The fight over depositions has intensified in recent weeks as lawyers for the two companies sparred over whether Mr. Hannity and another pro-Trump host, Jeanine Pirro, should have to sit for a second round of questioning about messages that Dominion obtained from their phones as part of the discovery process. Fox lawyers have argued that the hosts should not be compelled to testify again, citing the legal protections that journalists have against being forced to reveal confidential sources.The judge ruled that Dominion’s lawyers could question both Mr. Hannity and Ms. Pirro again but limited the scope of what they could ask. Ms. Pirro’s second deposition was late last month; Mr. Hannity’s has yet to be scheduled.Fox has accused Dominion in court filings of making “escalating demands” for documents that are voluminous in quantity, saying it would have to hire a second litigation team to accommodate such a “crushing burden.” (The judge has largely disagreed.)In a sign of the simmering tensions between the two sides, Fox lawyers have asked the court to impose tens of thousands of dollars in sanctions against Dominion. Fox has accused the voting machine company’s chief executive, John Poulos, and other senior company officials of failing to preserve their emails and text messages, as parties to a lawsuit are required to do with potentially relevant evidence.After Dominion filed its lawsuit in March 2021 — claiming that Fox’s coverage of its machines not only cost it hundreds of millions of dollars in business but “harmed the idea of credible elections” — many media law experts assumed this case would end like many other high-profile defamation case against a news organization: with a settlement.Fox News has a history of settling sensitive lawsuits before they reach a jury. In the last several years alone, it has paid tens of millions of dollars in claims: to women who reported sexual harassment by its former chief executive, Roger Ailes, and by prominent hosts including Bill O’Reilly; as well as to the family of Seth Rich, a former Democratic Party staff member who was killed in a robbery that some conservatives tried to link to an anti-Clinton conspiracy theory.But a settlement with Dominion appears to be a remote possibility at this point. Fox has said that the broad protections provided to the media under the First Amendment shield it from liability. The network says it was merely reporting on Mr. Trump’s accusations, which are protected speech even if the president is lying. Dominion’s complaint outlines examples in which Fox hosts did more than just report those false claims, they endorsed them.“This does not appear to be a case that’s going to settle — but anything can happen,” said Dan K. Webb, a noted trial lawyer who is representing Fox in the dispute. “There are some very fundamental First Amendment issues here, and those haven’t changed.”In a statement, Dominion said the company was confident its case would show that Fox knew it was spreading lies “from the highest levels down.”“Instead of acting responsibly and showing remorse, Fox instead has doubled down,” the statement said. “We’re focused on holding Fox accountable and are confident the truth will ultimately prevail.”The judge has set a trial date for April of next year. A separate defamation suit against Fox by the voting company Smartmatic is not scheduled to be ready for trial until the summer of 2024.Part of the reason Fox executives and its lawyers believe they can prevail is the high burden of proof Dominion must reach to convince a jury that the network’s coverage of the 2020 election defamed it. Under the law, a jury has to conclude that Fox acted with “actual malice,” meaning that people inside the network knew that what they were reporting was false but did so anyway, or that they recklessly disregarded information showing what they were reporting was wrong.That is what Dominion hopes to show the jury with the private messages it obtained from a several-week period after the election from Fox employees at all levels of the company. Very little is known publicly about what those messages could contain.In addition to arguing that its coverage of Dominion was protected as free speech, Fox argues it was merely covering statements from newsmakers. “There is nothing more newsworthy than covering the president of the United States and his lawyers making allegations of voter fraud,” a spokeswoman said.Fox’s lawyers are also planning lines of defense that they hope will dent Dominion’s credibility, even if that means leaning into some of the conspiracy theories that are at the heart of Dominion’s case. They may argue, for example, that it was plausible that the machines had been hacked, pointing to questions that were raised by at least one independent expert about whether the software was secure.As part of their fact-finding, Fox lawyers sought information from a University of Michigan computer scientist who wrote a report this year saying there were vulnerabilities in Dominion’s system that could be exploited, even though there is no evidence of any such breach.Mr. Webb said the intent would be to show that the fraud allegations “were not made up out of whole cloth.” But it was not his plan, he said, to pretend that Mr. Trump’s voter fraud falsehoods — which were the same as many of the falsehoods uttered on the air at Fox — were true. “The president’s allegations were not correct,” Mr. Webb said. He added that he planned “to show the jury that those security concerns were there and were real and added plausibility to the president’s allegations.”After Mr. Murdoch’s deposition on Monday, lawyers on both sides of the case said they expected one additional senior executive to be questioned by Dominion’s lawyers: Rupert Murdoch, chairman of the Fox Corporation, who founded Fox News with Mr. Ailes more than 25 years ago. More

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

    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 Reports Profit Gain, Despite Ratings Drop

    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