Fox's Murdoch Will Follow Ailes' Likely Exit, Media Expert Wolff Tells CNBC
NEW YORK (TheStreet) -- Fox News CEO Roger Ailes' likely departure from the station probably means parent company Twenty-First Century Fox (FOXA) - Get Report leader Rupert Murdoch will leave too, media journalist Michael Wolff, author of The Man Who Owns the News: Inside the Secret World of Rupert Murdoch, said on CNBC's "Power Lunch" Wednesday.
Ailes and Twenty-First Century Fox are reportedly negotiating the CEO's exit terms today. The move comes after several women employed by Fox News stepped forward to report they too had been sexually harassed by Ailes, which supports the original accusations made by former anchor Gretchen Carlson.
This situation is "beyond painful" for Murdoch. "I think that the sign that Roger Ailes may be out is effectively a sign that Rupert is out," Wolff stated.
While Murdoch is not being fired in "the conventional way," his sons James and Lachlan who handle Fox's operations, are going to push him out, he explained.
"I believe, they are at the point of moving their father, however gently, however firmly out of the main management ring of the company," Wolff continued, noting that the push is likely being led by James.
"Lachlan is very much his father's son and has made every effort to get along with Roger Ailes and I think they have a decent rapport" while James and Ailes are "like oil and water. They loath each other," Wolf said.
Shares of Fox are slipping by 2.7% to $27 late this afternoon.
Separately, TheStreet Ratings rated Fox as a "buy" with a score of B-.
This is driven by several positive factors, which can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, attractive valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: FOX
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