1 00:00:06,047 --> 00:00:07,882 [cheering and applause] 2 00:00:07,966 --> 00:00:10,093 [man 1] Welcome, one and all, to The Late Show. 3 00:00:10,176 --> 00:00:11,803 I'm your host, Stephen Colbert. 4 00:00:11,886 --> 00:00:13,388 [audience cheering] 5 00:00:13,471 --> 00:00:15,849 About two hours ago, 6 00:00:15,932 --> 00:00:20,270 Fox News settled their defamation suit with Dominion Voting Systems. 7 00:00:20,353 --> 00:00:21,479 Damn it! 8 00:00:21,563 --> 00:00:23,273 I wanted to see Rupert Murdoch 9 00:00:23,356 --> 00:00:25,859 put his hand on the Bible and burst into flames. 10 00:00:25,942 --> 00:00:27,152 [audience laughing] 11 00:00:27,235 --> 00:00:28,987 [dramatic music playing] 12 00:00:29,070 --> 00:00:30,947 -[horns beeping] -[man shouting] 13 00:00:31,031 --> 00:00:34,034 [Jim Rutenberg] 2023 was one of the worst years 14 00:00:34,117 --> 00:00:36,411 in Rupert's entire career. 15 00:00:36,494 --> 00:00:37,829 [shouts] 'Cause Fox Lie! 16 00:00:37,912 --> 00:00:43,001 [Jim] Fox News settled a lawsuit with the Dominion voting machine company 17 00:00:43,084 --> 00:00:45,336 for almost a billion dollars. 18 00:00:45,420 --> 00:00:46,963 Fox was already strapped for cash. 19 00:00:47,047 --> 00:00:50,008 Tucker Carlson can only afford one facial expression. 20 00:00:50,091 --> 00:00:52,594 [man 2] Dominion had accused Fox News of knowingly pushing 21 00:00:52,677 --> 00:00:54,053 false conspiracy theories 22 00:00:54,137 --> 00:00:57,724 about what former President Trump had claimed were rigged voting machines. 23 00:00:57,807 --> 00:01:02,479 So Fox knew this was all BS, and yet they were hyping it to their viewers anyway. 24 00:01:02,562 --> 00:01:03,813 [chanting] Detox from Fox. 25 00:01:04,397 --> 00:01:06,566 [Jim] During the 2020 presidential race, 26 00:01:06,649 --> 00:01:08,276 Fox hosts gave airtime 27 00:01:08,359 --> 00:01:11,154 to conspiracy theories about a stolen election. 28 00:01:11,237 --> 00:01:14,157 These fraudulent ballots will just be counted again. 29 00:01:14,240 --> 00:01:18,078 Fox News was trying to sell their bullshit that Trump really won the election. 30 00:01:18,161 --> 00:01:21,706 The machine ran an algorithm that shaved votes from Trump 31 00:01:21,790 --> 00:01:23,666 and awarded them to Biden. 32 00:01:23,750 --> 00:01:27,086 [man 3] The judge ruled that everything Fox aired about Dominion 33 00:01:27,170 --> 00:01:30,799 and its voting machines in the 2020 election was false. 34 00:01:30,882 --> 00:01:32,175 [camera clicking] 35 00:01:33,009 --> 00:01:35,595 [Jonathan Mahler] Their decision to buy into the big lie 36 00:01:35,678 --> 00:01:38,932 created a credibility problem for the company and for shareholders. 37 00:01:39,808 --> 00:01:42,435 So there are tensions within the Murdoch family. 38 00:01:43,061 --> 00:01:46,648 Liz, James, and Prue are concerned 39 00:01:46,731 --> 00:01:49,442 about the direction of the company under Lachlan, 40 00:01:49,526 --> 00:01:53,738 because this Dominion Voting settlement happened under his leadership. 41 00:01:54,906 --> 00:01:59,577 At Fox News, there has always been a push to the right. 42 00:02:00,161 --> 00:02:03,748 But now this is an existential matter for the family. 43 00:02:03,832 --> 00:02:05,834 [Jonathan] An enormous amount is at stake. 44 00:02:05,917 --> 00:02:10,213 I mean, this is the most powerful media empire in the world. 45 00:02:10,713 --> 00:02:14,300 And it begins to provoke a conversation among the children 46 00:02:14,384 --> 00:02:17,595 about, well, what is gonna happen when Rupert dies? 47 00:02:17,679 --> 00:02:20,932 Where do we go from here? What will happen with the companies? 48 00:02:23,393 --> 00:02:26,020 So James is passing through London, 49 00:02:26,104 --> 00:02:30,400 and he reaches out to Liz and Prue to meet with them. 50 00:02:30,483 --> 00:02:33,528 It's worth acknowledging Lachlan is not invited. 51 00:02:36,281 --> 00:02:41,077 [Jonathan] James reserves a private room inside the Claridge Hotel in London. 52 00:02:42,078 --> 00:02:47,000 And that meeting becomes a source of a lot of debate… [scoffs] 53 00:02:47,083 --> 00:02:48,668 …and a lot of controversy. 54 00:02:48,751 --> 00:02:51,546 [Jim] Because as this is all unspooling, 55 00:02:51,629 --> 00:02:54,591 there's this article in the Financial Times 56 00:02:54,674 --> 00:02:56,968 that really sets Lachlan off. 57 00:02:57,594 --> 00:02:59,721 There's a quote from a source close to James 58 00:02:59,804 --> 00:03:03,975 that says, basically, when Rupert dies, Lachlan's out. 59 00:03:04,809 --> 00:03:07,270 [Jonathan] Of course, that fuels Lachlan's paranoia. 60 00:03:07,353 --> 00:03:09,647 -[man 4] Who is going to succeed? -[man 5] Waiting in the wings… 61 00:03:09,731 --> 00:03:14,360 [Jim] The chatter that James will effect a coup with his sisters 62 00:03:14,444 --> 00:03:16,905 was, in Lachlan's ears, deafening. 63 00:03:17,822 --> 00:03:19,324 The clear indication is, 64 00:03:19,407 --> 00:03:21,868 if James were to somehow effect a coup, 65 00:03:21,951 --> 00:03:25,747 he would change the direction of Fox and would take it to the left. 66 00:03:27,248 --> 00:03:30,752 [Jonathan] And that's all in the air as this meeting happens. 67 00:03:30,835 --> 00:03:32,962 [pulsing music playing] 68 00:03:33,046 --> 00:03:34,964 [Jim] So, at Claridge's, 69 00:03:35,048 --> 00:03:38,384 Liz, James, and Prue are definitely venting about Lachlan 70 00:03:38,468 --> 00:03:41,346 but all say that they didn't talk about getting rid of him. 71 00:03:42,347 --> 00:03:44,724 The most memorable thing about it is Liz has a beer. 72 00:03:45,308 --> 00:03:46,392 [bottle opens, fizzes] 73 00:03:46,976 --> 00:03:50,605 But afterward, Prue gets an alarming text from Lachlan 74 00:03:51,522 --> 00:03:53,274 asking her to call him. 75 00:03:54,442 --> 00:03:57,237 Prue is beside herself. 76 00:03:57,987 --> 00:04:01,574 Maybe he's found out about their meeting. She doesn't know what to say. 77 00:04:02,075 --> 00:04:03,952 And she writes to Liz, 78 00:04:04,535 --> 00:04:06,120 "Lachlan trying to reach me!" 79 00:04:06,204 --> 00:04:09,916 And she does a kind of exploding-head emoji. 80 00:04:09,999 --> 00:04:12,001 [music continues] 81 00:04:13,086 --> 00:04:17,131 [Jonathan] But, as it turns out, he was reaching out to tell her 82 00:04:17,215 --> 00:04:20,301 about some changes at one of the company's boards. 83 00:04:21,094 --> 00:04:23,429 [Jim] So it was actually pretty innocuous, 84 00:04:23,513 --> 00:04:26,349 but still, Lachlan's very unhappy. 85 00:04:26,432 --> 00:04:28,643 He's constantly reminding or pointing out to his dad, 86 00:04:28,726 --> 00:04:32,272 "Look, look, look. They're planning a coup." 87 00:04:32,814 --> 00:04:36,859 Rupert spent his entire lifetime building Fox News 88 00:04:36,943 --> 00:04:39,279 and the rest of the conservative empire, 89 00:04:39,362 --> 00:04:41,739 so he sees it as his legacy. 90 00:04:42,615 --> 00:04:45,743 [Richard Cooke] And there is only one of his children 91 00:04:45,827 --> 00:04:50,289 that Rupert trusts with the Murdoch media empire 92 00:04:50,373 --> 00:04:53,459 operating in the interests of conservative politics. 93 00:04:53,543 --> 00:04:56,504 He knows Lachlan will act as an instrument of his will, 94 00:04:56,587 --> 00:04:58,089 even posthumously. 95 00:04:59,007 --> 00:05:02,343 [Jim] So Rupert and Lachlan decide, "We've got to figure this out." 96 00:05:03,303 --> 00:05:06,180 And thus begins an aggressive plot 97 00:05:06,264 --> 00:05:09,434 to take control of the empire once and for all. 98 00:05:09,517 --> 00:05:11,436 [dramatic music playing] 99 00:05:11,519 --> 00:05:13,521 [music softens] 100 00:05:16,524 --> 00:05:18,359 [music ends] 101 00:05:20,903 --> 00:05:23,364 -[children chattering] -[string music playing] 102 00:05:26,409 --> 00:05:30,079 [Paul Barry] Rupert portrays himself as someone who came from nothing, 103 00:05:30,163 --> 00:05:32,206 who built his empire out of nothing. 104 00:05:33,750 --> 00:05:36,919 But he grew up in a house that had 30 rooms. 105 00:05:37,003 --> 00:05:37,920 It had a tower, 106 00:05:39,005 --> 00:05:40,882 four acres of gardens, 107 00:05:41,841 --> 00:05:44,135 a ballroom. They had ten servants. 108 00:05:44,218 --> 00:05:47,347 So Rupert wasn't just born with a silver spoon in his mouth. 109 00:05:47,805 --> 00:05:51,017 He had a whole set of gold cutlery. 110 00:05:52,393 --> 00:05:53,770 [Paddy Manning] His father, Keith, 111 00:05:53,853 --> 00:05:57,148 was the most powerful newspaper man in Australia, 112 00:05:57,231 --> 00:06:00,234 with one of the top-selling tabloids in Melbourne. 113 00:06:00,318 --> 00:06:01,861 And Rupert grew up 114 00:06:01,944 --> 00:06:04,030 wanting to emulate his father. 115 00:06:04,614 --> 00:06:10,828 The way that his father made money was through a populist messaging apparatus. 116 00:06:11,537 --> 00:06:14,457 [Paul] He pioneers modern tabloid journalism in Australia. 117 00:06:14,540 --> 00:06:16,876 Snappy headlines, competitions, 118 00:06:16,959 --> 00:06:18,878 sport, and crime. 119 00:06:19,879 --> 00:06:22,131 [Paddy] He was a kingmaker in his day. 120 00:06:22,215 --> 00:06:26,219 He was able to seat and unseat prime ministers. 121 00:06:27,053 --> 00:06:28,888 [Paul] Rupert's born in 1931. 122 00:06:28,971 --> 00:06:30,431 He's the second child. 123 00:06:30,515 --> 00:06:33,476 The first is a girl. Two more girls come after. 124 00:06:33,559 --> 00:06:38,356 Rupert, as the boy, was naturally the one that his father looked to to succeed him. 125 00:06:38,981 --> 00:06:41,275 But he was not great at sports. 126 00:06:41,359 --> 00:06:43,903 He was not particularly focused in school. 127 00:06:44,862 --> 00:06:48,241 His headmaster said he was the most unpleasant, 128 00:06:48,324 --> 00:06:50,827 most difficult pupil he'd ever taught. 129 00:06:52,120 --> 00:06:56,374 He was rebellious, arrogant, didn't like authority. 130 00:06:56,999 --> 00:06:59,627 So he's a guy who's got a lot of privilege about him, 131 00:06:59,710 --> 00:07:01,212 and he behaves like that. 132 00:07:01,295 --> 00:07:03,339 [church bell tolls] 133 00:07:03,423 --> 00:07:07,510 [man 1] Keith had sent him to Oxford to rub shoulders with future influencers 134 00:07:07,593 --> 00:07:09,303 and make something of himself. 135 00:07:10,054 --> 00:07:12,098 And instead, Rupert was driving fast, 136 00:07:12,181 --> 00:07:15,852 gambling, drinking, smoking, having a great time. 137 00:07:15,935 --> 00:07:17,937 [curious music playing] 138 00:07:19,230 --> 00:07:23,359 [David] So Keith Murdoch was not convinced that Rupert was a good representation 139 00:07:23,443 --> 00:07:25,945 of what the Murdoch family name should embody. 140 00:07:26,028 --> 00:07:28,948 [bells chime] 141 00:07:31,159 --> 00:07:34,245 [Rupert] I was sleeping in one Sunday morning in my flat at Oxford 142 00:07:34,328 --> 00:07:38,708 when my tutor came in and woke me up and told me that my father had died. 143 00:07:39,333 --> 00:07:42,962 Any memory I really have of it is one of, um, complete shock. 144 00:07:43,713 --> 00:07:46,674 [David] Rupert's father died rather abruptly. 145 00:07:47,592 --> 00:07:53,014 In his will, Keith Murdoch said that he hoped for his only son, 146 00:07:53,097 --> 00:07:54,640 Keith Rupert Murdoch, 147 00:07:54,724 --> 00:07:59,020 to have a useful, altruistic, and full life 148 00:07:59,103 --> 00:08:01,314 in newspapering and broadcasting, 149 00:08:01,397 --> 00:08:03,107 which is quite a charge. 150 00:08:03,191 --> 00:08:06,903 I was burdened with this anxiety 151 00:08:08,571 --> 00:08:09,864 for Rupert. 152 00:08:09,947 --> 00:08:11,199 He was so very young, 153 00:08:11,782 --> 00:08:15,495 and I did long to be able to help Rupert 154 00:08:15,995 --> 00:08:18,873 to prove worthy of his father. 155 00:08:20,833 --> 00:08:23,961 [Walter] From Elisabeth's perspective, she's got this 21-year-old son 156 00:08:24,045 --> 00:08:26,839 who's totally unproven when it comes to being a journalist, 157 00:08:26,923 --> 00:08:28,716 let alone running a media empire. 158 00:08:29,759 --> 00:08:33,346 And so after the funeral, Keith Murdoch's former colleagues take control. 159 00:08:34,680 --> 00:08:38,684 [Paddy] The executors of his estate talked Dame Elisabeth into selling 160 00:08:38,768 --> 00:08:41,479 the bulk of the media business that Keith had built up. 161 00:08:42,772 --> 00:08:44,649 Rupert is outraged. 162 00:08:44,732 --> 00:08:47,485 He believes that the people that used to work for his father 163 00:08:47,568 --> 00:08:48,861 have now betrayed him, 164 00:08:48,945 --> 00:08:51,614 and his inheritance has been stolen out from under him. 165 00:08:52,448 --> 00:08:55,284 [David] Rupert carried this with him for his entire life. 166 00:08:55,785 --> 00:08:58,079 Not a chip, but a boulder on his shoulder. 167 00:08:58,162 --> 00:09:02,875 [Paddy] And he spends the next 45 years getting even. 168 00:09:06,379 --> 00:09:07,838 [reporter 1] Mr. Murdoch, sir. 169 00:09:07,922 --> 00:09:09,882 [cameras clicking] 170 00:09:09,966 --> 00:09:12,552 [Paul] People always ask, "What drives Rupert?" 171 00:09:12,635 --> 00:09:15,346 Everyone thinks that it's money, but it's really the game. 172 00:09:16,722 --> 00:09:19,892 [Paddy] By the mid '90s, Rupert was on a winning streak. 173 00:09:20,393 --> 00:09:23,145 The Murdoch empire is sprawling. 174 00:09:24,063 --> 00:09:26,440 It's in the US, UK, and Australia. 175 00:09:27,149 --> 00:09:31,654 [Sarah] He has 20th Century Fox, movie studios, television. 176 00:09:32,572 --> 00:09:34,574 [woman 1] His communications empire 177 00:09:34,657 --> 00:09:36,909 includes everything from satellite companies 178 00:09:36,993 --> 00:09:39,412 to some of the biggest newspapers in the world. 179 00:09:39,495 --> 00:09:43,916 Forbes magazine estimates his fortune to be worth $4 billion. 180 00:09:44,000 --> 00:09:48,671 [McKay Coppins] Rupert had already acquired a villainous reputation 181 00:09:48,754 --> 00:09:53,134 for his down-market tabloids and conservative politics. 182 00:09:53,217 --> 00:09:55,845 [Rupert] Our company is a reflection of my thinking, 183 00:09:55,928 --> 00:09:58,222 my character, and my values. 184 00:09:58,306 --> 00:10:03,311 [Sarah] His guiding light was poking whoever he viewed as the Establishment. 185 00:10:05,229 --> 00:10:07,607 When it's going well, push it. 186 00:10:10,276 --> 00:10:15,781 [Jim] 1996 is the most important year in Rupert Murdoch's career. 187 00:10:16,449 --> 00:10:18,659 And it's important for two words. 188 00:10:19,160 --> 00:10:20,036 Fox News. 189 00:10:20,119 --> 00:10:23,622 As you know, Fox has had a phenomenal growth in the last few years, 190 00:10:23,706 --> 00:10:30,004 and now we have to move, uh, to making ourselves the best in news programming. 191 00:10:30,087 --> 00:10:32,089 Rupert saw a real business opportunity. 192 00:10:32,173 --> 00:10:34,342 Good morning, and welcome to MSNBC. 193 00:10:34,425 --> 00:10:36,594 [Sarah] He saw all of the news operations 194 00:10:36,677 --> 00:10:39,472 fighting for the same left-of-center audience, 195 00:10:39,555 --> 00:10:43,059 and there's no real conservative voice in the news. 196 00:10:43,142 --> 00:10:45,686 [reporter 2] Murdoch is vowing to offer an alternative 197 00:10:45,770 --> 00:10:48,272 to what he claims is a liberal bias in the media. 198 00:10:48,356 --> 00:10:51,150 Recognizing an audience that isn't being catered to 199 00:10:51,233 --> 00:10:52,735 and speaking to them directly, 200 00:10:53,235 --> 00:10:55,613 this is the model for the Murdoch media empire. 201 00:10:56,197 --> 00:10:58,532 [Sarah] So Rupert launched Fox News. 202 00:10:58,616 --> 00:11:03,788 We've been very lucky in being able to obtain the services of Mr. Roger Ailes. 203 00:11:06,415 --> 00:11:09,877 I'd like to thank Mr. Murdoch for the kind words. Thank you all for coming… 204 00:11:09,960 --> 00:11:14,548 [Sarah] Like Rupert Murdoch, Roger Ailes was deep into conservative politics. 205 00:11:14,632 --> 00:11:19,428 We'd like to, uh, restore objectivity where we find it lacking, 206 00:11:19,512 --> 00:11:24,058 and, uh, we just expect to do fine, balanced journalism. 207 00:11:24,684 --> 00:11:26,977 Roger Ailes is one of the smartest people I've met. 208 00:11:27,061 --> 00:11:29,063 Smartest, canny. 209 00:11:29,146 --> 00:11:31,899 It's like talking to Satan. Like, Satan's smart. 210 00:11:33,818 --> 00:11:37,446 [Matthew Belloni] It depends who you are, how you describe the relationship 211 00:11:37,530 --> 00:11:39,532 between Roger Ailes and Rupert Murdoch. 212 00:11:40,950 --> 00:11:45,579 They are either supervillains that came together to dominate the world, 213 00:11:45,663 --> 00:11:51,001 or they are mutual geniuses who recognize market value. 214 00:11:51,085 --> 00:11:52,837 Considering his choice of Ailes, 215 00:11:52,920 --> 00:11:57,049 and that his conservative fingerprints are smudged all over his newspapers, 216 00:11:57,133 --> 00:12:00,344 many analysts wonder if he will use the TV news channel 217 00:12:00,428 --> 00:12:01,721 to spread his gospel. 218 00:12:02,763 --> 00:12:03,806 [man 2] How did it happen? 219 00:12:03,889 --> 00:12:06,142 How did television news become so predictable, 220 00:12:06,225 --> 00:12:08,477 and in some cases, so boring? 221 00:12:08,561 --> 00:12:10,771 Well, we're going to try to be different. 222 00:12:10,855 --> 00:12:12,064 [theme music playing] 223 00:12:12,148 --> 00:12:13,733 [man 3] We launched in the fall of 1996. 224 00:12:13,816 --> 00:12:15,776 [reporter 3] The debut of the Fox News Channel. 225 00:12:15,860 --> 00:12:18,112 [man 3] We were sort of outcasts, like pirates, 226 00:12:18,195 --> 00:12:22,908 and being part of that sort of outsider, anti-establishment crusade was fun. 227 00:12:22,992 --> 00:12:24,952 Chandra Levy was killed by an acquaintance… 228 00:12:25,035 --> 00:12:27,663 But one of my fellow editors at CNN said, 229 00:12:27,747 --> 00:12:30,875 "Be careful. Ailes does not have the best reputation." 230 00:12:30,958 --> 00:12:33,586 He has this pugnacious sort of style, 231 00:12:33,669 --> 00:12:36,255 so he was known as a ruthless character. 232 00:12:37,256 --> 00:12:40,468 [woman 2] The Fox News Channel was Roger's fiefdom. 233 00:12:40,551 --> 00:12:45,139 He had a lot of latitude and unilateral control. 234 00:12:45,222 --> 00:12:49,310 But he followed the playbook of the other Murdoch media properties. 235 00:12:49,810 --> 00:12:52,771 [Matthew] It was taking the ethos of the New York Post 236 00:12:52,855 --> 00:12:55,357 and bringing it to a vibrant television screen. 237 00:12:55,983 --> 00:12:58,194 Whether it was an American flag 238 00:12:58,277 --> 00:13:01,405 or splashy graphics, there's something to look at. 239 00:13:01,489 --> 00:13:03,824 [David Shuster] "Ding," Fox News alert. 240 00:13:04,408 --> 00:13:07,703 "Ding." [laughs] Over and over and over. 241 00:13:08,329 --> 00:13:14,251 They believed that you had to grab the audience, the viewer, visually first. 242 00:13:15,294 --> 00:13:17,713 [David Shuster] Fox hired people who were good-looking. 243 00:13:18,214 --> 00:13:24,094 [Sarah] More makeup, more hairspray, shorter skirts, and higher heels. 244 00:13:24,595 --> 00:13:27,097 Roger Ailes came up with the idea of a translucent desk 245 00:13:27,181 --> 00:13:31,185 because he wanted the audience to be able to see the legs of his female anchors. 246 00:13:31,268 --> 00:13:32,728 [anchor] …got rid of valedictorians. 247 00:13:32,812 --> 00:13:35,606 Ailes wanted an image that you would stop on. 248 00:13:35,689 --> 00:13:38,692 And… you know, I don't think he was wrong. 249 00:13:38,776 --> 00:13:41,237 [applause and cheering] 250 00:13:41,820 --> 00:13:45,574 [Richard] They realized that what the American public wanted, 251 00:13:45,658 --> 00:13:47,910 almost more than anything else, 252 00:13:47,993 --> 00:13:51,497 was an attractive young woman with the opinions of an old man. 253 00:13:53,207 --> 00:13:56,585 [Sarah] Just as Ailes and Rupert Murdoch are launching Fox, 254 00:13:57,086 --> 00:14:00,047 a story on the national stage breaks through. 255 00:14:00,130 --> 00:14:01,966 [theme music playing] 256 00:14:02,049 --> 00:14:05,219 -[reporter 4] The president's on trial. -The impeachment of President Clinton. 257 00:14:05,302 --> 00:14:06,804 Bill Clinton strung us all along. 258 00:14:06,887 --> 00:14:10,307 [Sarah] It's Bill Clinton's alleged affair with Monica Lewinsky, 259 00:14:10,391 --> 00:14:14,853 and it's catnip for Fox News's viewers. 260 00:14:14,937 --> 00:14:17,231 [reporter 5] CBS News has uncovered new pictures… 261 00:14:17,314 --> 00:14:19,233 [Sarah] Everybody was covering that story, 262 00:14:19,817 --> 00:14:24,488 but no one was covering it with the same kind of glee that Fox was. 263 00:14:24,572 --> 00:14:26,657 This is a very good day for a number of lawyers 264 00:14:26,740 --> 00:14:28,867 involved in the Monica Lewinsky investigation. 265 00:14:28,951 --> 00:14:31,287 We're hitting a sitting president. Hitting him hard. 266 00:14:31,370 --> 00:14:32,746 He definitely lied. 267 00:14:32,830 --> 00:14:35,624 [David Shuster] We were encouraged to play by different rules. 268 00:14:35,708 --> 00:14:39,670 To go all in on a scandalous tabloid kind of story… 269 00:14:39,753 --> 00:14:41,297 Monica Lewinsky's chance… 270 00:14:41,380 --> 00:14:43,966 [David] …without the kind of careful journalistic balance 271 00:14:44,049 --> 00:14:45,926 that had preceded years before. 272 00:14:46,010 --> 00:14:48,470 The Lewinsky case challenges all of us. 273 00:14:48,554 --> 00:14:52,725 You and I, the American people, will have to render the final verdict. 274 00:14:53,309 --> 00:14:57,438 [Alisyn] That's when Fox News Channel found its voice, 275 00:14:57,521 --> 00:15:00,441 and the ratings spiked. 276 00:15:00,524 --> 00:15:03,902 Tonight, it's worth pointing out that the Fox News Channel has succeeded 277 00:15:03,986 --> 00:15:05,112 against all odds. 278 00:15:05,195 --> 00:15:09,742 It's hard to imagine that they could have launched with as much of a bang 279 00:15:09,825 --> 00:15:13,412 if they didn't have that story to chew on every single night. 280 00:15:14,121 --> 00:15:17,833 Fox News established that you can make a ton of money and get a huge audience 281 00:15:17,916 --> 00:15:20,794 not by doing straight news, but by giving people what they want. 282 00:15:21,962 --> 00:15:24,798 [woman 3] For all you kids at home, Santa just is white. 283 00:15:25,299 --> 00:15:27,968 You know, I mean, Jesus was a white man too. 284 00:15:28,719 --> 00:15:32,222 [Sarah] They took this populist tendency and put it on steroids. 285 00:15:32,306 --> 00:15:37,019 Mexico has announced it will provide up to 200,000 survival kits 286 00:15:37,102 --> 00:15:41,565 to those planning to illegally cross the border into the US. 287 00:15:42,149 --> 00:15:44,818 [Richard] Rupert said it was like picking money up off the street. 288 00:15:45,944 --> 00:15:48,530 He was shameless about it, proud of it, 289 00:15:49,031 --> 00:15:50,449 and with good reason. 290 00:15:50,949 --> 00:15:53,869 It made him phenomenally wealthy and powerful. 291 00:15:56,038 --> 00:15:59,375 [McKay] Rupert made very clear early on 292 00:15:59,458 --> 00:16:03,712 that he wanted this huge, multinational conglomerate, 293 00:16:03,796 --> 00:16:07,716 publicly traded, wildly successful media company 294 00:16:07,800 --> 00:16:09,009 to be a family business. 295 00:16:10,511 --> 00:16:13,597 [Lachlan] We talked as a family together about business. 296 00:16:13,681 --> 00:16:16,600 And, of course, that today is still the case. 297 00:16:16,684 --> 00:16:20,896 So I talk with my sister and my brother and my dad about business 298 00:16:20,979 --> 00:16:23,232 on… on… on almost a daily basis. 299 00:16:24,483 --> 00:16:26,860 [Elisabeth] We were given wonderful opportunities. 300 00:16:27,695 --> 00:16:30,531 We've also been very much aware of the fact 301 00:16:30,614 --> 00:16:35,703 that there's pretty serious expectation that you better prove what you're doing. 302 00:16:35,786 --> 00:16:39,748 As they talk about it within the family, he wasn't raising children. 303 00:16:39,832 --> 00:16:42,001 He was raising possible successors. 304 00:16:42,084 --> 00:16:45,921 [Sarah] And it created this rivalry among the kids. 305 00:16:46,005 --> 00:16:49,842 It's like he's throwing blood into the water and letting them fight it out. 306 00:16:51,010 --> 00:16:54,096 [Elisabeth] I think my drive comes from the same place 307 00:16:54,179 --> 00:16:56,557 that my dad's does. 308 00:16:56,640 --> 00:16:59,476 There's obviously a sense of competitive drive, 309 00:16:59,560 --> 00:17:03,313 and there's a sense of real ambition. 310 00:17:03,397 --> 00:17:04,732 [enigmatic music playing] 311 00:17:04,815 --> 00:17:06,650 [David Folkenflik] In the late 1990s, 312 00:17:06,734 --> 00:17:10,404 Elisabeth goes to work for her father at Sky, 313 00:17:10,946 --> 00:17:14,324 the major British satellite TV conglomerate. 314 00:17:14,825 --> 00:17:17,786 Rupert really installed very tough people there. 315 00:17:18,704 --> 00:17:22,666 [McKay] It was, like, macho and nasty and belligerent. 316 00:17:24,293 --> 00:17:27,129 [Claire] What I heard from people who worked with Liz 317 00:17:27,212 --> 00:17:29,298 is that she's like her dad. 318 00:17:29,882 --> 00:17:33,052 She's a very ideas-oriented person. 319 00:17:33,135 --> 00:17:37,514 Elisabeth has a creative eye that neither of her brothers really possess. 320 00:17:38,265 --> 00:17:42,102 [Claire] If we're talking about what her big contribution to the company is, 321 00:17:42,186 --> 00:17:45,773 it's that she spotted, I think it was called Pop Idol in the UK, 322 00:17:45,856 --> 00:17:48,984 and said to Dad, "I think that we need this show." 323 00:17:49,068 --> 00:17:51,236 [man 4] America has made their decision. 324 00:17:51,320 --> 00:17:53,447 [Claire] And they renamed it American Idol. 325 00:17:53,947 --> 00:17:55,324 [man 4] Kelly Clarkson. 326 00:17:55,407 --> 00:17:56,784 [audience cheering] 327 00:17:56,867 --> 00:17:59,244 [Claire] It was transformative for Fox. 328 00:18:00,329 --> 00:18:02,164 [Paul] People, they're impressed by her. 329 00:18:02,247 --> 00:18:05,292 She has shown that she can build and run TV stations. 330 00:18:06,502 --> 00:18:09,838 [Claire] I think she thought that, one day, she might be the CEO at Sky. 331 00:18:10,339 --> 00:18:12,382 I think Dad thought otherwise. 332 00:18:12,466 --> 00:18:15,427 Perhaps because she was a woman, it wasn't enough. 333 00:18:15,511 --> 00:18:18,764 [David] He treats her as disrespectfully and in as sexist a manner 334 00:18:18,847 --> 00:18:23,060 as you could expect that a person of his generation might do. 335 00:18:23,894 --> 00:18:26,230 [Paul] She's a young mother with two kids. 336 00:18:26,313 --> 00:18:29,149 [Sarah] And Rupert makes these sexist, undermining comments 337 00:18:29,233 --> 00:18:31,110 about her having children 338 00:18:31,193 --> 00:18:34,279 and how she needs to figure out what she wants to do with her life. 339 00:18:35,697 --> 00:18:37,950 She feels she's not being given a chance. 340 00:18:38,450 --> 00:18:41,620 And so she faxes a resignation letter to her father. 341 00:18:43,956 --> 00:18:46,458 [Sarah] It's a classic Murdoch move. 342 00:18:46,542 --> 00:18:48,293 And her father respects that. 343 00:18:48,961 --> 00:18:52,464 [Elisabeth] I think he was surprised that I decided to leave. 344 00:18:52,548 --> 00:18:55,676 But I think also great pride. Um, I think he got it. 345 00:18:56,260 --> 00:18:57,594 [purposeful music playing] 346 00:18:57,678 --> 00:19:00,639 [Sarah] She starts her own production company called Shine. 347 00:19:00,722 --> 00:19:03,725 [Rupert] She's not given up her ambitions, by any means, 348 00:19:03,809 --> 00:19:05,394 to play a part in the company. 349 00:19:05,894 --> 00:19:09,773 But we'll have to see how things settle down in her own career. 350 00:19:10,774 --> 00:19:13,610 [McKay] There were always rumors in the company 351 00:19:13,694 --> 00:19:19,116 that Liz was the dark horse candidate to become Rupert's successor. 352 00:19:19,741 --> 00:19:22,202 And she was playing the long game. 353 00:19:22,286 --> 00:19:24,413 That by building her own successful company 354 00:19:24,496 --> 00:19:26,999 outside of the Murdoch umbrella, 355 00:19:27,082 --> 00:19:29,835 that one day she would come back and "kill her brothers." 356 00:19:31,169 --> 00:19:33,380 [cameras clicking] 357 00:19:33,463 --> 00:19:34,798 Morning, everybody. 358 00:19:35,966 --> 00:19:37,801 [woman 4] 25-year-old Lachlan Murdoch 359 00:19:37,885 --> 00:19:41,597 is taking over control of his father's Australian operations. 360 00:19:41,680 --> 00:19:42,890 [Paul] By the mid to late '90s, 361 00:19:42,973 --> 00:19:46,727 Lachlan is in charge of the whole of the Australian empire. 362 00:19:46,810 --> 00:19:50,230 He's a bit of a rock star, but he's not a journalist. 363 00:19:50,314 --> 00:19:53,275 He's not a businessman. He's not got an MBA. 364 00:19:53,358 --> 00:19:57,154 [woman 5] There's a lot of focus on who will be Rupert Murdoch's successor. 365 00:19:57,237 --> 00:19:59,615 Do you think that could be you of the four children? 366 00:19:59,698 --> 00:20:01,700 Oh, I… I can't think that far ahead. 367 00:20:01,783 --> 00:20:04,494 I'll do the best job I can, and we'll see what happens. 368 00:20:05,537 --> 00:20:07,623 I'm very pleased about it, but it'll be a test. 369 00:20:08,665 --> 00:20:10,834 [Paul] He's not incredibly highly regarded, 370 00:20:10,918 --> 00:20:13,420 but he's got good people around him. 371 00:20:13,503 --> 00:20:17,382 And those good people know that if they want to get into the organization, 372 00:20:17,466 --> 00:20:20,177 they need to help Lachlan, because Rupert is looking. 373 00:20:20,844 --> 00:20:23,722 [reporter 6] They're Australia's glamorous, golden couple. 374 00:20:23,805 --> 00:20:26,266 Lachlan Murdoch, heir to a media fortune, 375 00:20:26,350 --> 00:20:29,436 and Sarah, a successful model, TV presenter, 376 00:20:29,519 --> 00:20:31,688 and all-round great Aussie girl. 377 00:20:31,772 --> 00:20:33,774 [quirky music playing] 378 00:20:35,484 --> 00:20:37,903 [reporter 7] Fit enough to marry a supermodel, 379 00:20:37,986 --> 00:20:41,365 Lachlan Murdoch started his wedding day with a morning run. 380 00:20:41,448 --> 00:20:43,867 -Mr. Murdoch, looking forward to the day? -Absolutely. 381 00:20:45,744 --> 00:20:48,956 [woman 6] The Murdoch clan has gathered at the family's property near Yass 382 00:20:49,039 --> 00:20:51,208 for what's been labeled the wedding of the year. 383 00:20:52,209 --> 00:20:54,586 [Paddy] He's married the supermodel Sarah O'Hare, 384 00:20:54,670 --> 00:20:57,214 and he started a family. 385 00:20:57,798 --> 00:20:59,633 He's fabulously rich. 386 00:21:00,467 --> 00:21:02,010 They are like royalty. 387 00:21:03,011 --> 00:21:05,180 [Matthew] He loves it there. He loves the lifestyle. 388 00:21:06,807 --> 00:21:09,184 He feels like he is at home. 389 00:21:10,310 --> 00:21:14,398 [Paddy] But if he's to be the successor, it's clear that Lachlan has to come 390 00:21:14,481 --> 00:21:17,317 where the center of gravity is for News Corporation, 391 00:21:17,818 --> 00:21:19,278 and that's in America. 392 00:21:19,778 --> 00:21:21,947 [reporter 8] Goodbye, Network 10 Australia, 393 00:21:22,030 --> 00:21:23,407 and hello, New York. 394 00:21:24,491 --> 00:21:27,244 [Paddy] Lachlan and his family move to New York, 395 00:21:27,327 --> 00:21:31,081 and he becomes an executive at News Corporation. 396 00:21:31,164 --> 00:21:32,708 [dynamic music playing] 397 00:21:32,791 --> 00:21:34,293 He was clearly the favorite. 398 00:21:34,376 --> 00:21:37,671 ♪ Twenty-five cents for the New York Post ♪ 399 00:21:37,754 --> 00:21:41,133 [McKay] He was learning the ways of the New York Post 400 00:21:41,216 --> 00:21:42,467 and the newspaper business, 401 00:21:42,551 --> 00:21:44,928 which was what Rupert cared about most, 402 00:21:45,012 --> 00:21:46,638 and he was the oldest son. 403 00:21:47,639 --> 00:21:51,476 [Paul] Lachlan from the very beginning, really, is the one who's being groomed, 404 00:21:51,560 --> 00:21:54,146 and the one who's being given the easiest run. 405 00:21:54,646 --> 00:21:59,276 And Rupert is describing Lachlan as the "first among equals." 406 00:22:00,068 --> 00:22:02,988 That doesn't go down too well with James. 407 00:22:03,572 --> 00:22:06,158 [McKay] James was running an independent hip-hop label 408 00:22:06,241 --> 00:22:09,119 called Rawkus Records with his friends. 409 00:22:09,202 --> 00:22:14,207 They actually discovered some of the emerging hip-hop talent in Brooklyn. 410 00:22:14,291 --> 00:22:15,417 Mos Def. 411 00:22:15,500 --> 00:22:16,501 ♪ I'm Slim Shady… ♪ 412 00:22:16,585 --> 00:22:18,670 [McKay] They worked with Eminem at one point. 413 00:22:18,754 --> 00:22:20,922 [curious music playing] 414 00:22:21,006 --> 00:22:24,176 I think James wanted to think of himself 415 00:22:24,259 --> 00:22:27,137 as someone who was going to chart his own course, 416 00:22:27,220 --> 00:22:32,267 and he resisted Rupert's efforts to put him to work in the family business. 417 00:22:32,851 --> 00:22:36,605 But there was this gravitational pull from Rupert 418 00:22:36,688 --> 00:22:39,107 to get James back into his orbit. 419 00:22:39,191 --> 00:22:41,360 [suspenseful music playing] 420 00:22:41,443 --> 00:22:44,237 Rupert decided to buy Rawkus Records. 421 00:22:45,864 --> 00:22:51,161 I don't think Rupert particularly cared for the emerging hip-hop scene, 422 00:22:51,244 --> 00:22:53,038 but buying the label 423 00:22:53,121 --> 00:22:57,042 was an easy way for him to force his son's hand 424 00:22:57,125 --> 00:22:58,919 and get him into the company. 425 00:22:59,753 --> 00:23:02,756 Also, James had grown up 426 00:23:02,839 --> 00:23:07,260 believing that the Murdoch media empire was the center of the universe. 427 00:23:08,762 --> 00:23:12,766 So when his dad said, "I want you to come work for me, son, 428 00:23:12,849 --> 00:23:15,894 I'm gonna trust you with this," it meant a lot. 429 00:23:15,977 --> 00:23:18,021 [indistinct chattering] 430 00:23:18,688 --> 00:23:21,566 [Paul] Rupert manages to put him in a suit and get his hair cut, 431 00:23:21,650 --> 00:23:22,818 and bring him into line. 432 00:23:25,737 --> 00:23:29,574 [David] James goes over to work for Star TV in Asia. 433 00:23:31,493 --> 00:23:34,204 [McKay] James is 27 years old at this point. 434 00:23:34,287 --> 00:23:38,041 He's had really no meaningful corporate experience. 435 00:23:38,125 --> 00:23:40,335 People at News Corp thought it was a suicide mission. 436 00:23:41,294 --> 00:23:43,880 There was no reason to believe 437 00:23:43,964 --> 00:23:48,718 that a green 27-year-old could go to Hong Kong 438 00:23:48,802 --> 00:23:51,138 and turn around a company 439 00:23:51,221 --> 00:23:54,516 that had lost, I think, in recent years, $100 million. 440 00:23:55,100 --> 00:23:58,478 But James, I think, was excited by the challenge, 441 00:23:58,562 --> 00:24:03,984 excited that his dad seemed to trust him, and earnestly went out there 442 00:24:04,067 --> 00:24:06,987 believing that he could do big things there. 443 00:24:08,572 --> 00:24:11,158 [Jim] James had to show that he could play his father's game. 444 00:24:11,241 --> 00:24:14,327 He needed to prove it to his father but also to the world. 445 00:24:14,411 --> 00:24:16,705 That meant compromising on some things. 446 00:24:16,788 --> 00:24:20,167 [reporter 9] There were political protests on the issue of human rights. 447 00:24:20,667 --> 00:24:23,420 [Sarah] James is very willing to look the other way 448 00:24:23,503 --> 00:24:26,131 when it comes to human rights abuses in China. 449 00:24:27,674 --> 00:24:30,760 [reporter 10] Murdoch pulled out of publishing the memoirs of Chris Patten, 450 00:24:30,844 --> 00:24:34,764 the former governor of Hong Kong and critic of the Chinese government. 451 00:24:34,848 --> 00:24:36,683 [tense music playing] 452 00:24:36,766 --> 00:24:38,435 [Richard] They made him eat shit. 453 00:24:38,518 --> 00:24:40,061 They made him give speeches 454 00:24:40,145 --> 00:24:43,482 about how you had to respect other countries' ways of doing things, 455 00:24:43,565 --> 00:24:46,151 and democracy wasn't always the answer. 456 00:24:47,235 --> 00:24:49,279 [James] The press doesn't need to talk down to people. 457 00:24:49,362 --> 00:24:52,532 The press doesn't need to educate. The press is just a tool. 458 00:24:53,158 --> 00:24:56,286 [Sarah] He wants to own the identity of being a Murdoch 459 00:24:56,369 --> 00:24:58,580 and being a kind of ruthless businessman. 460 00:24:59,831 --> 00:25:01,416 [McKay] His early assignments, 461 00:25:01,500 --> 00:25:05,086 he was really eager to prove himself to his dad 462 00:25:05,170 --> 00:25:07,464 and to be seen as a good soldier. 463 00:25:07,547 --> 00:25:09,049 [fireworks whistling] 464 00:25:09,758 --> 00:25:12,636 [Richard] So James spearheaded these efforts. 465 00:25:13,637 --> 00:25:16,514 And for a while, it looks like it will work. 466 00:25:17,682 --> 00:25:22,896 But China is a graveyard for a lot of Western businesses. 467 00:25:23,897 --> 00:25:26,691 The Chinese Communist Party, they just played him along. 468 00:25:27,567 --> 00:25:30,737 It all wound up not doing anything for him 469 00:25:30,820 --> 00:25:32,531 other than wasting time and money. 470 00:25:35,450 --> 00:25:40,997 He is unsuccessful in opening up China to the degree that they had hoped. 471 00:25:42,040 --> 00:25:44,626 [Paul] But James always had a pretty high opinion of himself 472 00:25:44,709 --> 00:25:47,254 and I think he was incredibly competitive with Lachlan, 473 00:25:47,337 --> 00:25:49,506 and so I don't think he ever gave up. 474 00:25:49,589 --> 00:25:51,049 James, welcome to Walk the Talk. 475 00:25:51,132 --> 00:25:53,009 Thank you so much. It's great to be here. 476 00:25:53,093 --> 00:25:56,096 [McKay] He pivots the growth strategy to India, 477 00:25:56,179 --> 00:26:00,183 where he develops a big new slate of programming, 478 00:26:00,267 --> 00:26:03,603 including an Indian version of Who Wants to Be a Millionaire?, 479 00:26:03,687 --> 00:26:05,730 which becomes a national sensation. 480 00:26:05,814 --> 00:26:07,190 Best of luck to you, Naveen. 481 00:26:07,691 --> 00:26:09,484 [McKay] He also sees 482 00:26:09,568 --> 00:26:13,321 a lot of organizational mismanagement and chaos. 483 00:26:14,322 --> 00:26:18,702 James had to instill a professional corporate culture. 484 00:26:18,785 --> 00:26:20,954 And he, by all accounts, succeeded. 485 00:26:21,913 --> 00:26:26,960 Within, I think, two years of his time, Star turned a profit in Asia. 486 00:26:27,752 --> 00:26:31,381 James actually remembers coming back for a board meeting one day 487 00:26:31,464 --> 00:26:34,759 and having one of the directors pull him aside and say, 488 00:26:34,843 --> 00:26:37,012 "I didn't think you had it in you. Congrats." 489 00:26:41,349 --> 00:26:45,645 At the time, both James and Lachlan were on the board for News Corp. 490 00:26:45,729 --> 00:26:49,608 And when they would get in the room at these board meetings, 491 00:26:49,691 --> 00:26:53,445 it was an opportunity for both of them to perform for their father. 492 00:26:53,528 --> 00:26:54,612 [cartoon music playing] 493 00:26:54,696 --> 00:26:59,576 And I think maybe implicitly to compete with each other in front of their father. 494 00:26:59,659 --> 00:27:01,453 [tense music playing] 495 00:27:01,536 --> 00:27:05,749 James would come in challenging every point that Lachlan made. 496 00:27:06,708 --> 00:27:08,501 They were bickering a lot. 497 00:27:09,002 --> 00:27:12,088 And some people who remember those moments 498 00:27:12,172 --> 00:27:15,091 will say that they felt bad for Lachlan, 499 00:27:15,175 --> 00:27:17,844 and that it was awkward for everyone involved. 500 00:27:18,720 --> 00:27:21,264 But the fact that James was succeeding 501 00:27:21,348 --> 00:27:25,727 started a lot of speculation inside the News Corp headquarters 502 00:27:25,810 --> 00:27:29,773 about whether James would actually overtake his older brother 503 00:27:29,856 --> 00:27:31,649 to become the successor. 504 00:27:31,733 --> 00:27:32,859 [music ends] 505 00:27:34,903 --> 00:27:37,781 Lachlan, meanwhile, has been laboring 506 00:27:37,864 --> 00:27:44,037 in the claustrophobic confines of the New York News Corp headquarters, 507 00:27:44,120 --> 00:27:46,039 working at Fox News. 508 00:27:47,415 --> 00:27:50,126 [Paul] He's thought of as quite lazy by some people, 509 00:27:50,210 --> 00:27:52,212 as quite arrogant by some people, 510 00:27:52,295 --> 00:27:55,090 as quite pleased with himself by some people. 511 00:27:55,173 --> 00:28:00,220 Now, that may be unfair, but it's a recurrent story that you get. 512 00:28:00,887 --> 00:28:03,640 [McKay] But his words carried a certain amount of weight, 513 00:28:03,723 --> 00:28:06,434 maybe a disproportionate amount of weight, 514 00:28:06,518 --> 00:28:08,853 because he was the boss's son. 515 00:28:09,479 --> 00:28:12,732 And there were certain people in the company, 516 00:28:12,816 --> 00:28:14,734 like Roger Ailes, 517 00:28:14,818 --> 00:28:19,364 who really resented how much respect Lachlan commanded. 518 00:28:20,365 --> 00:28:23,368 [Matthew] The impression at Fox at the time 519 00:28:23,451 --> 00:28:26,121 was that they were babysitting, 520 00:28:26,204 --> 00:28:28,331 and they did not like that. 521 00:28:29,666 --> 00:28:33,878 So Lachlan knew that he had to prove himself 522 00:28:33,962 --> 00:28:36,005 at a pretty significant moment for Fox News. 523 00:28:38,341 --> 00:28:40,468 -[siren wailing] -[man shouting] 524 00:28:40,552 --> 00:28:43,930 [woman 7] An incredible plane crash into the World Trade Center 525 00:28:44,013 --> 00:28:46,391 here at the lower tip of Manhattan. 526 00:28:46,474 --> 00:28:51,146 [reporter 11] Another plane just flew into the second tower. 527 00:28:51,813 --> 00:28:55,567 [Sarah] 9/11 and a terrorist attack on the United States 528 00:28:55,650 --> 00:28:57,444 was a perfect moment for Fox. 529 00:28:57,527 --> 00:29:00,780 [reporter 12] You're either with us against the terrorists or you're with… 530 00:29:00,864 --> 00:29:04,451 [Sarah] They were taking advantage of a broad fear in the American public 531 00:29:04,534 --> 00:29:06,995 and harnessing it and running with it. 532 00:29:07,787 --> 00:29:11,374 [Alisyn] Roger Ailes personally had an anti-Muslim bias, 533 00:29:11,458 --> 00:29:15,503 and that attitude showed up quite vividly on air. 534 00:29:15,587 --> 00:29:17,922 [reporter 13] Palestinians dancing in the street. 535 00:29:18,006 --> 00:29:19,340 How did that make you feel? 536 00:29:19,424 --> 00:29:23,553 That was the drum that we beat every day, all day. 537 00:29:24,387 --> 00:29:26,389 [Paddy] In the days after 9/11, 538 00:29:26,473 --> 00:29:30,393 there was a panic about anthrax being sent around 539 00:29:30,477 --> 00:29:34,397 to various government offices and media businesses. 540 00:29:34,481 --> 00:29:35,982 [George W. Bush] As all Americans know, 541 00:29:36,065 --> 00:29:40,236 recent weeks have brought a second wave of terrorist attacks upon our country. 542 00:29:40,320 --> 00:29:43,031 Deadly anthrax spores sent through the US mail. 543 00:29:43,114 --> 00:29:46,201 [reporter 14] In just a week, we have had four confirmed cases of anthrax, 544 00:29:46,284 --> 00:29:48,161 all with media connections. 545 00:29:48,244 --> 00:29:50,246 -[tense music playing] -[applause] 546 00:29:52,081 --> 00:29:54,751 America has always stood for human freedom. 547 00:29:54,834 --> 00:29:59,255 [Sarah] So amid this environment where everyone is on high alert, 548 00:29:59,339 --> 00:30:02,342 the yearly Al Smith dinner hosts Roger Ailes. 549 00:30:02,842 --> 00:30:04,469 Actually Bill Clinton, this year… 550 00:30:04,552 --> 00:30:06,095 [Sarah] That happens to be the night 551 00:30:06,179 --> 00:30:10,642 when they learn that an envelope full of white powder 552 00:30:10,725 --> 00:30:12,435 has been sent to the Fox office. 553 00:30:13,853 --> 00:30:15,146 [Paddy] The FBI comes in. 554 00:30:15,230 --> 00:30:19,359 They identify that it is anthrax. They close off the newsroom. 555 00:30:21,110 --> 00:30:24,739 Lachlan is managing it under advisement from the FBI 556 00:30:24,822 --> 00:30:27,909 as a kind of workplace incident. 557 00:30:27,992 --> 00:30:30,703 [Jonathan] Ailes is losing his mind. He's… 558 00:30:30,787 --> 00:30:33,581 "We're under attack! We're under attack!" He's freaking out. 559 00:30:33,665 --> 00:30:35,750 Ailes wants to go nuclear. 560 00:30:36,334 --> 00:30:38,461 [Paddy] He's thinking, "This is big news." 561 00:30:38,545 --> 00:30:42,799 And directly against the advice of the FBI, he goes public. 562 00:30:43,466 --> 00:30:45,718 "Fox News is under attack." 563 00:30:45,802 --> 00:30:50,056 Anthrax spores mailed to this building where Fox News Channel sits. 564 00:30:51,099 --> 00:30:53,935 [Paddy] Lachlan finds out about this, 565 00:30:54,018 --> 00:30:57,480 storms downstairs to confront Ailes directly. 566 00:30:57,564 --> 00:30:58,815 "What are you doing?" 567 00:30:59,482 --> 00:31:02,527 [Sarah] Lachlan tries to calm Ailes down, 568 00:31:02,610 --> 00:31:04,904 but they end up verbally fighting 569 00:31:04,988 --> 00:31:08,491 in front of a huge number of people in the office. 570 00:31:08,575 --> 00:31:11,077 This is not done to Roger Ailes. 571 00:31:11,661 --> 00:31:14,789 [Paddy] He was probably the only person inside News Corporation 572 00:31:14,872 --> 00:31:16,749 that even Rupert was scared of. 573 00:31:17,709 --> 00:31:19,627 [Jim] Roger Ailes lets Rupert have it. 574 00:31:20,587 --> 00:31:23,590 "I am not gonna be lectured by your children." 575 00:31:23,673 --> 00:31:25,466 He's furious. 576 00:31:26,009 --> 00:31:27,844 [Paddy] And in the end, 577 00:31:27,927 --> 00:31:31,222 Rupert backs Roger over Lachlan. 578 00:31:31,973 --> 00:31:35,768 [Jim] Ultimately, he'll give Ailes a brand-new contract. 579 00:31:36,561 --> 00:31:40,106 So Rupert basically sent the message to Lachlan 580 00:31:40,189 --> 00:31:42,900 that, "You're not to cross Ailes." 581 00:31:42,984 --> 00:31:44,527 "You're second fiddle here." 582 00:31:45,820 --> 00:31:50,617 [McKay] Lachlan is incredibly frustrated, incredibly insulted by all of it. 583 00:31:51,576 --> 00:31:53,119 And also is starting to realize 584 00:31:53,202 --> 00:31:56,623 that even though he's supposed to be the heir apparent, 585 00:31:56,706 --> 00:32:00,043 that his dad has no interest in retiring anytime soon. 586 00:32:04,464 --> 00:32:06,466 [sprightly music playing] 587 00:32:07,717 --> 00:32:09,802 [reporter 15] How does having a young family again 588 00:32:09,886 --> 00:32:11,846 affect your views on retirement? 589 00:32:12,347 --> 00:32:14,223 Your own retirement, that is? 590 00:32:14,307 --> 00:32:16,684 -Oh, it delays it forever. Hm. -[laughter] 591 00:32:17,518 --> 00:32:20,188 [Sarah] At this point, Rupert and his third wife, 592 00:32:20,271 --> 00:32:21,689 Wendi Deng Murdoch, 593 00:32:21,773 --> 00:32:24,400 have two daughters, Grace and Chloe. 594 00:32:25,860 --> 00:32:30,073 [Matthew] The other children were never big fans of Wendi Deng. 595 00:32:30,156 --> 00:32:32,200 They were skeptical of her. 596 00:32:32,784 --> 00:32:33,618 Oh, come on. 597 00:32:33,701 --> 00:32:39,207 [Sarah] And James and Lachlan saw Wendi as being tough on their dad. 598 00:32:39,707 --> 00:32:43,294 But Wendi wanted him to keep up with her. 599 00:32:43,378 --> 00:32:45,171 [exhaling deeply] 600 00:32:46,214 --> 00:32:49,550 Wendi has him under a sort of regimen. 601 00:32:50,551 --> 00:32:56,182 He is on a strict diet of green juice, and he's not allowed to have dessert. 602 00:32:56,265 --> 00:32:58,184 [Jim] He undergoes this makeover. 603 00:32:58,267 --> 00:33:02,689 He dyes his hair red. He starts wearing a leather jacket. 604 00:33:03,189 --> 00:33:07,026 Rupert goes from the Upper East Side, established stodginess, 605 00:33:07,110 --> 00:33:08,820 to downtown hip. 606 00:33:09,320 --> 00:33:11,364 It's like the Fountain of Youth for Rupert. 607 00:33:12,115 --> 00:33:15,576 And unlike Anna, who didn't want anything to do with the business, 608 00:33:16,160 --> 00:33:19,288 Wendi wanted to know what was going on in the company 609 00:33:19,372 --> 00:33:20,873 and was very interested in it. 610 00:33:21,457 --> 00:33:23,418 [Claire] Wendi went everywhere with him, 611 00:33:23,501 --> 00:33:27,338 and she's becoming also an advisor to the company. 612 00:33:27,422 --> 00:33:29,465 [Sarah] She was very ambitious, 613 00:33:29,549 --> 00:33:33,302 and she had a lot of hopes for her two daughters. 614 00:33:33,386 --> 00:33:36,305 She says that she wants her own children 615 00:33:36,389 --> 00:33:40,643 to have the same standing as Rupert's other children. 616 00:33:40,727 --> 00:33:43,312 Where does that stand today, succession? 617 00:33:43,396 --> 00:33:46,190 The little girls are too young to consider this at the moment. 618 00:33:46,274 --> 00:33:49,652 Do you consider them… You have said, "They're all my children." 619 00:33:49,736 --> 00:33:52,238 They'll all get treated equally financially. 620 00:33:52,321 --> 00:33:54,782 He goes on Charlie Rose, 621 00:33:54,866 --> 00:34:00,621 and that is how his own children learn that he is slicing up the trust 622 00:34:00,705 --> 00:34:06,085 and giving his two youngest children an equal stake in the inheritance. 623 00:34:06,169 --> 00:34:07,170 [cash register rings] 624 00:34:07,253 --> 00:34:10,798 [Paddy] Each of the four elder children got paid $150 million 625 00:34:10,882 --> 00:34:15,219 for agreeing to include Grace and Chloe on the Murdoch Family Trust. 626 00:34:16,012 --> 00:34:18,765 So Rupert's six kids have an equal financial stake, 627 00:34:18,848 --> 00:34:21,976 but only the four eldest kids have a vote. 628 00:34:22,060 --> 00:34:24,228 [Charlie] You ran into some buzz saw within the family 629 00:34:24,312 --> 00:34:25,563 because of that decision? 630 00:34:25,646 --> 00:34:27,648 We've resolved everything very happily. 631 00:34:28,149 --> 00:34:31,360 In fact, it sets off a bomb with the other kids. 632 00:34:32,361 --> 00:34:35,364 But he doesn't apologize for this 633 00:34:35,448 --> 00:34:39,744 and runs roughshod over their feelings and their desires. 634 00:34:40,244 --> 00:34:42,455 [Jim] We've seen this his entire life. 635 00:34:42,955 --> 00:34:44,791 When Rupert wants something, 636 00:34:45,416 --> 00:34:47,168 he will stop at nothing to get it. 637 00:34:49,378 --> 00:34:52,298 [McKay] Often, the Murdoch family would come together 638 00:34:52,381 --> 00:34:53,800 for Christmas or Thanksgiving 639 00:34:53,883 --> 00:34:57,678 on Rupert's superyacht called Morning Glory. 640 00:34:58,179 --> 00:34:59,847 [laid-back drumbeat playing] 641 00:35:00,431 --> 00:35:03,768 James had been married to his wife, Kathryn, for a while. 642 00:35:04,519 --> 00:35:09,941 And Kathryn remembers these legendary games of family Monopoly 643 00:35:10,024 --> 00:35:11,901 that the Murdochs would play. 644 00:35:12,485 --> 00:35:15,321 Once, she caught Rupert cheating… 645 00:35:15,404 --> 00:35:17,740 [chuckles] …and called him out on it, 646 00:35:17,824 --> 00:35:20,785 and he just kind of smirked and shrugged. 647 00:35:21,536 --> 00:35:26,249 Apparently, this was a common feature of their family Monopoly games. 648 00:35:26,749 --> 00:35:29,836 And that sort of tells you everything you need to know about him. 649 00:35:32,088 --> 00:35:35,800 [Jim] So, after the changes to the trust, the family is divided. 650 00:35:36,425 --> 00:35:38,177 There's a lot of tension. 651 00:35:38,678 --> 00:35:43,182 And especially with Rupert's favored successor, Lachlan. 652 00:35:44,308 --> 00:35:47,311 There are a lot of things going on in Lachlan's head at that point. 653 00:35:48,062 --> 00:35:50,481 And he was still feuding with Roger Ailes. 654 00:35:51,941 --> 00:35:56,571 Ailes wants to get Fox Television to back a new series 655 00:35:56,654 --> 00:36:00,032 called Crime Line, hosted by Geraldo Rivera. 656 00:36:00,533 --> 00:36:04,453 Lachlan says it's too expensive, and he blocks it. 657 00:36:04,954 --> 00:36:07,290 Roger goes directly to Rupert. 658 00:36:07,790 --> 00:36:11,711 Rupert reassures him and says, "Don't worry about the boy." 659 00:36:11,794 --> 00:36:13,379 [tense music playing] 660 00:36:13,462 --> 00:36:16,174 [Paddy] "Don't worry about the boy. Do the show." 661 00:36:16,257 --> 00:36:19,802 [Sarah] It was a classic Murdoch moment. Business over family. 662 00:36:20,803 --> 00:36:24,724 [Paddy] Lachlan was in the air on his way back to America from Australia 663 00:36:24,807 --> 00:36:27,768 and found out about it when he landed. 664 00:36:27,852 --> 00:36:29,854 [music peaks, ends] 665 00:36:29,937 --> 00:36:31,272 He felt betrayed. 666 00:36:32,815 --> 00:36:36,444 Rupert had backed Roger over him again. 667 00:36:38,446 --> 00:36:43,618 [McKay] Lachlan tried to be the good son and the loyal deputy. 668 00:36:44,118 --> 00:36:46,871 But every time he tried to make a decision 669 00:36:46,954 --> 00:36:48,956 that one of the other executives didn't like, 670 00:36:49,040 --> 00:36:50,791 they would go over his head to Rupert. 671 00:36:50,875 --> 00:36:52,960 And Rupert would often overrule Lachlan. 672 00:36:54,086 --> 00:36:58,591 So I think, for Lachlan, the proximity to his dad 673 00:36:58,674 --> 00:37:03,638 ended up being bad for his place in the succession race. 674 00:37:03,721 --> 00:37:07,225 [reporter 16] Some surprise news out of Rupert Murdoch's News Corp overnight, 675 00:37:07,308 --> 00:37:10,519 with his eldest son, Lachlan, quitting his job as an executive. 676 00:37:10,603 --> 00:37:13,856 [reporter 17] Lachlan Murdoch will remain on the News Corporation board, 677 00:37:13,940 --> 00:37:18,236 but plans to return home to Australia and pursue an independent career. 678 00:37:18,319 --> 00:37:23,574 [McKay] So now Liz and Prudence were out of the running to be heir apparent. 679 00:37:23,658 --> 00:37:28,371 And after Lachlan resigns in a huff, moves back to Australia… 680 00:37:28,454 --> 00:37:30,456 [suspenseful music playing] 681 00:37:30,998 --> 00:37:34,168 …James is the only viable successor left. 682 00:37:35,086 --> 00:37:37,255 [bell chimes] 683 00:37:37,964 --> 00:37:40,132 [reporter 18] James Murdoch has been given a larger role 684 00:37:40,216 --> 00:37:43,386 overseeing all of News Corp's European and Asian operations. 685 00:37:43,469 --> 00:37:46,764 [reporter 19] 30-year-old James Murdoch was appointed the new CEO of Sky 686 00:37:46,847 --> 00:37:47,932 two weeks ago. 687 00:37:48,015 --> 00:37:50,351 Everyone wants to see the value of the company grow. 688 00:37:50,434 --> 00:37:52,019 That's what we're gonna work to do. 689 00:37:52,770 --> 00:37:56,274 [McKay] James' promotion was pretty controversial. 690 00:37:56,857 --> 00:38:02,154 There were howls of nepotism and outrage that Rupert's relatively young son 691 00:38:02,238 --> 00:38:06,450 was going to be entrusted with this crown jewel of British broadcasting, 692 00:38:08,286 --> 00:38:13,332 on top of the fact that this was the job that Liz had been after. 693 00:38:15,626 --> 00:38:18,546 [Kara] I'll tell you that James… I met with him in London. 694 00:38:18,629 --> 00:38:19,797 He was so arrogant. 695 00:38:20,298 --> 00:38:23,009 Master of the universe kind of vibe. 696 00:38:24,010 --> 00:38:27,013 [Sarah] At this point, even though he hasn't gone to business school, 697 00:38:27,096 --> 00:38:29,682 he starts talking like he went to business school. 698 00:38:29,765 --> 00:38:34,562 The abolition of media boundaries is a trumpet call to expansion, 699 00:38:34,645 --> 00:38:35,730 to do more. 700 00:38:37,857 --> 00:38:42,028 [McKay] James starts to effect a public persona 701 00:38:42,111 --> 00:38:46,032 that a lot of people around him suspected was modeled after Rupert. 702 00:38:47,241 --> 00:38:50,453 [Sarah] He encourages all of his employees to call themselves pirates. 703 00:38:50,536 --> 00:38:52,788 So in his London office, 704 00:38:52,872 --> 00:38:57,293 he has a life-sized statue of Darth Vader 705 00:38:57,376 --> 00:39:00,671 and talks about them running the Death Star. 706 00:39:01,422 --> 00:39:03,841 [David] He is a good ambassador for his father, 707 00:39:03,924 --> 00:39:05,801 and he's also making the case that, 708 00:39:05,885 --> 00:39:07,970 "I can be the brash disruptor." 709 00:39:08,054 --> 00:39:12,266 "I can be the bold new force, just as you once were." 710 00:39:13,434 --> 00:39:18,105 The irony is that the more he seemed to act like Rupert, 711 00:39:18,189 --> 00:39:22,485 the more Rupert felt alienated by James. 712 00:39:23,277 --> 00:39:25,946 But also, we look forward to the government's… 713 00:39:26,030 --> 00:39:29,533 [McKay] James begins to cultivate his own inner circle. 714 00:39:29,617 --> 00:39:31,952 He starts dining with prime ministers 715 00:39:32,036 --> 00:39:35,206 and cozying up to the liberal, respectable Establishment. 716 00:39:36,123 --> 00:39:39,877 He wanted to modernize and run this company 717 00:39:39,960 --> 00:39:44,090 by what he considered to be the best practices and standards. 718 00:39:45,341 --> 00:39:50,096 So he was going to fire the more toxic executives and employees 719 00:39:50,179 --> 00:39:54,517 and emphasize human resources and start to listen to the lawyers more. 720 00:39:55,559 --> 00:39:59,355 All of this really rubbed Rupert the wrong way. 721 00:39:59,438 --> 00:40:05,319 He was really suspicious of James trying to cozy up to the Establishment. 722 00:40:05,820 --> 00:40:10,991 It kind of makes Rupert regret that he doesn't have Lachlan around. 723 00:40:14,036 --> 00:40:17,039 [Paul] After being forced out by Roger Ailes, 724 00:40:17,123 --> 00:40:19,708 Lachlan is in Australia with his tail between his legs. 725 00:40:21,877 --> 00:40:24,088 He was still on the News Corporation board. 726 00:40:24,171 --> 00:40:26,799 The profit motive is not only fundamental… 727 00:40:26,882 --> 00:40:28,551 [Paddy] But he was doing his own thing, 728 00:40:28,634 --> 00:40:31,137 looking to make big investments for the company. 729 00:40:32,096 --> 00:40:35,558 He was kind of humiliated, but he still wants to emulate his father. 730 00:40:36,433 --> 00:40:39,353 [Paul] The question is, how good a businessman is Lachlan? 731 00:40:40,354 --> 00:40:44,066 One of the things that's powering newspapers at the time is classified ads, 732 00:40:44,150 --> 00:40:46,777 but it's quite clear that the newspapers are fading 733 00:40:46,861 --> 00:40:49,780 and the Internet's gonna take all the advertising revenue 734 00:40:49,864 --> 00:40:51,824 and real-estate ads in particular. 735 00:40:53,409 --> 00:40:56,745 So Lachlan says, "We need to get a share of that." 736 00:40:57,455 --> 00:41:00,875 And so when realestate.com comes along, he buys it. 737 00:41:01,375 --> 00:41:06,380 This is clearly a great deal, and it's a great deal for everyone involved. 738 00:41:06,464 --> 00:41:07,590 It's win-win-win. 739 00:41:08,716 --> 00:41:11,886 [Paul] The decision to invest in realestate.com.au 740 00:41:11,969 --> 00:41:14,638 makes the family billions of dollars, 741 00:41:14,722 --> 00:41:19,560 and it becomes the most valuable property in the News Corp business in Australia. 742 00:41:20,227 --> 00:41:23,481 I think they only paid $10 million. It's now worth more than a billion. 743 00:41:24,356 --> 00:41:26,025 [McKay] By taking himself out of the running 744 00:41:26,108 --> 00:41:29,028 and moving back to Australia to set up his own shop 745 00:41:29,111 --> 00:41:31,906 and start building his own little media empire, 746 00:41:32,698 --> 00:41:38,204 Lachlan becomes more desirable to his father as a successor. 747 00:41:38,287 --> 00:41:41,373 I think that his dad kind of wants what he can't have. 748 00:41:42,333 --> 00:41:45,127 Mr. Murdoch, the market's wondering about your succession. 749 00:41:45,211 --> 00:41:48,005 You said this week that, virtually, you'll die in the saddle, 750 00:41:48,088 --> 00:41:49,381 but you have to think of it. 751 00:41:50,382 --> 00:41:54,094 It would be very nice. It's every father's, uh, natural desire 752 00:41:54,178 --> 00:41:57,014 to see, I think, his children follow him if they're up to it. 753 00:41:57,097 --> 00:42:00,184 And we'll have to see how they, uh, work it out. 754 00:42:00,267 --> 00:42:02,311 I hope not fight it out, but, uh… 755 00:42:02,394 --> 00:42:04,855 I hope to be around for a few more years. 756 00:42:05,397 --> 00:42:07,608 [somber music playing] 757 00:42:07,691 --> 00:42:10,694 [Jonathan] Rupert is not a person who likes to talk about his death. 758 00:42:12,655 --> 00:42:15,407 [Sarah] But now he's 94 years old, 759 00:42:15,491 --> 00:42:20,204 and he's clearly preparing for one day when he eventually passes. 760 00:42:21,288 --> 00:42:22,289 [Jim] At this point, 761 00:42:22,373 --> 00:42:27,628 Liz, James, and Prue share concerns about the direction of the company. 762 00:42:27,711 --> 00:42:29,547 [man 7] Good morning, Mr. Murdoch. 763 00:42:30,130 --> 00:42:33,092 [Jim] Rupert sees Fox as his legacy. 764 00:42:33,926 --> 00:42:37,054 And he's convinced that Lachlan is the only one 765 00:42:37,137 --> 00:42:39,265 that will carry on what he built. 766 00:42:39,848 --> 00:42:42,893 At the same time, Lachlan's looking over his shoulder, 767 00:42:42,977 --> 00:42:45,271 worried that after his father dies, 768 00:42:45,354 --> 00:42:48,023 there could be a coup, and he could be pushed aside. 769 00:42:48,732 --> 00:42:52,486 So Rupert and Lachlan start looking into the Murdoch Family Trust. 770 00:42:53,320 --> 00:42:56,865 If Rupert doesn't get the trust built around Lachlan, 771 00:42:56,949 --> 00:42:57,783 it's over. 772 00:42:58,951 --> 00:43:00,452 They want to figure out, 773 00:43:01,453 --> 00:43:03,872 is there a way to poke a hole in this trust? 774 00:43:04,623 --> 00:43:08,252 And what they find is there actually is a way, 775 00:43:08,335 --> 00:43:12,047 as long as it was solely for the benefit of all of the heirs. 776 00:43:12,548 --> 00:43:17,720 The simplest way to understand it is the trust had eight votes. 777 00:43:18,220 --> 00:43:21,932 Four controlled by Rupert, one controlled by each child. 778 00:43:22,016 --> 00:43:23,726 So Rupert could never be outvoted, 779 00:43:23,809 --> 00:43:27,229 but no child could be in control when Rupert died. 780 00:43:27,896 --> 00:43:30,482 So Rupert and Lachlan want to create 781 00:43:30,566 --> 00:43:33,944 two new entities that will control the trust. 782 00:43:34,695 --> 00:43:39,450 And those entities will be able to override the one that exists currently. 783 00:43:40,200 --> 00:43:43,287 They're keeping it secret from all the other children, 784 00:43:43,787 --> 00:43:47,207 and they're going to do it under a crazy codename, 785 00:43:47,291 --> 00:43:49,543 "Project Family Harmony." 786 00:43:49,627 --> 00:43:51,420 You have named your plan 787 00:43:51,503 --> 00:43:55,507 to take the voting rights of three children away from them 788 00:43:55,591 --> 00:43:57,217 Project Family Harmony. 789 00:43:57,301 --> 00:43:59,094 I mean, just mind blowing. 790 00:43:59,178 --> 00:44:01,180 [tense music playing] 791 00:44:03,223 --> 00:44:05,684 [McKay] There was a period of a few weeks, 792 00:44:05,768 --> 00:44:10,522 and then James got an invitation to join a Zoom call 793 00:44:10,606 --> 00:44:13,233 for a special meeting on the family trust. 794 00:44:14,360 --> 00:44:17,363 He did not know what this meeting would be about. 795 00:44:17,446 --> 00:44:22,451 He had no reason to believe there was any need to meet about the family trust. 796 00:44:23,202 --> 00:44:25,996 James was completely blindsided by this. 797 00:44:27,164 --> 00:44:31,669 Then his managing director received an agenda. 798 00:44:32,169 --> 00:44:36,840 He called James and said, "You need to look at this." 799 00:44:37,633 --> 00:44:40,260 "Your dad is making a move for the entire empire." 800 00:44:40,344 --> 00:44:41,637 [computer bleeps] 801 00:44:41,720 --> 00:44:46,141 About a week after that, the Murdoch family get on the Zoom. 802 00:44:46,642 --> 00:44:48,060 [computer bleeps repeatedly] 803 00:44:48,143 --> 00:44:50,521 [Jim] There's a lot of tension in the room. 804 00:44:50,604 --> 00:44:54,233 [McKay] You have James and his two sisters, Prudence and Liz, 805 00:44:55,109 --> 00:44:57,403 and his older brother, Lachlan. 806 00:44:58,237 --> 00:44:59,863 And you have Rupert 807 00:45:00,364 --> 00:45:03,242 surrounded by a hundred lawyers. 808 00:45:03,867 --> 00:45:07,204 He starts just kind of robotically reading from this script. 809 00:45:07,287 --> 00:45:10,374 [Jonathan] He tells them, "I'm going to change the family trust." 810 00:45:10,457 --> 00:45:14,586 [McKay] "You'll still have your shares, but you'll have no voting power." 811 00:45:15,087 --> 00:45:17,714 "You'll have no ability to make decisions." 812 00:45:17,798 --> 00:45:19,675 [music intensifies] 813 00:45:21,635 --> 00:45:24,346 "It's just gonna be Lachlan who has control." 814 00:45:25,764 --> 00:45:27,641 So the meeting does not go particularly well. 815 00:45:27,725 --> 00:45:29,893 There's shouting. There's yelling. 816 00:45:29,977 --> 00:45:31,311 It became very emotional. 817 00:45:32,646 --> 00:45:35,441 [Jonathan] James can't believe his father is saying this. 818 00:45:35,524 --> 00:45:39,778 [McKay] That he was willing to do something so provocative 819 00:45:39,862 --> 00:45:41,739 and so harmful. 820 00:45:41,822 --> 00:45:44,366 This is what had become of his family. 821 00:45:45,325 --> 00:45:47,619 [Jim] Rupert says, "You would come in." 822 00:45:47,703 --> 00:45:50,998 "You would change this company. You would take it to the left." 823 00:45:51,081 --> 00:45:53,292 "That's the golden goose you're playing with." 824 00:45:53,375 --> 00:45:55,544 "You need to go along with this." 825 00:45:55,627 --> 00:45:57,880 "It's good for all of you in spite of yourselves." 826 00:45:58,464 --> 00:46:01,717 What's notable is that Lachlan is silent 827 00:46:01,800 --> 00:46:04,136 when he had helped architect the whole thing. 828 00:46:05,220 --> 00:46:07,431 Liz can't contain herself. 829 00:46:07,514 --> 00:46:10,851 She says, "How are you gonna get consensus with a gun to our heads?" 830 00:46:10,934 --> 00:46:12,060 It was brutal. 831 00:46:12,144 --> 00:46:13,896 [computer chimes] 832 00:46:13,979 --> 00:46:15,772 It's total war. 833 00:46:23,071 --> 00:46:25,073 [instrumental music playing] get consensus with a gun to our heads?"