The Man Who Owns the News: Inside the Secret World of Rupert Murdoch

by Michael Wolff

  Judith Regan’s fall from grace: First reported in Michael Wolff, “The Trouble with Judith,” Vanity Fair, March 2007.

  Murdoch’s relationship with Regan: Interview with News Corp. executive.

  Roger Ailes dates Regan and finds it “the scariest three hours of my life”: Ailes conversation with author, autumn 2003.

  Lisa Steele’s feelings about Murdoch: Interviews with Bancroft family members, representatives, and Peter Kann.

  May 14 and May 23 meetings: Interviews with Bancroft family members and representatives.

  “An influential member of the family…”: Matthew Karnitschnig and Susan Warren, “Key Dow Jones Holder Cites Opposition to Murdoch Bid,” Wall Street Journal, May 24, 2007.

  CHAPTER 9

  Family being informed by reporters: Interviews with Bancroft family members, Dow Jones board members, and executives.

  Billy Cox’s e-mail: Matthew Karnitschnig, Sarah Ellison, Susan Pulliam, and Susan Warren, “Family Dynamics: Behind the Bancrofts’ Shift at Dow Jones—Mounting Pressure from Dissident Wing Raises Odds of a Sale,” June 2, 2007.

  May 31 board meeting: Interviews with Dow Jones board members and advisors.

  Leaks: Interviews with Michael Elefante and Peter McPherson.

  Evans pushed out at Random House: Lorne Manly, “Harry Evans Leaves Random House for Zuckerman’s Shop,” New York Observer, November 30, 1997.

  Evans pushed out by Zuckerman: Donald Trelford, “Harry Calls It a Day,” Evening Standard, October 27, 1999.

  Weinstein gets rid of Brown: Phyllis Furman, “Tina Gets $1M in Miramax Split,” Daily News, July 25, 2002.

  Murdoch’s nemesis: Murdoch on Conrad Black, September 22, 2007; on Ted Turner, October 23, 2007; on Maxwell, numerous interviews.

  “Murdoch drifted in like a ghost…”: Morgan, The Insider, 19.

  Murdoch gossiping in business section: Interviews with several business reporters and editors at News Corp. newspapers in Australia, London, and New York.

  “Old Grumpy,” Dover, Rupert’s Adventures in China.

  Uppers and downers: Interviews with former News Corp. executives and “Banned by Fleet Street: Murdoch by His Butler,” Punch, July 4–17, 1998.

  “Two-pot screamer”: Interview with former News Corp. executive February 27.

  “…intemperate and disagreeable”: Giles, Sundry Times, 212.

  “in his impulsiveness”: Ibid., 203–4.

  “It is important here, for the sake”: Ibid., 206.

  “restless temperament”: Ibid., 222.

  “authoritarian management”: Ibid., 217.

  Robert Thomson under Murdoch’s thumb: Former Times editor, conversation with author.

  Havard mafia: Jesse Angelo interview, October 29, 2007.

  Roosevelt Island as Aussie enclave: Col Allan, April 11, 2008.

  Paula Zahn: “I could have put a dead raccoon on the air this year and got a better rating than last year,” Roger Ailes told the New York Times when confronted with the fact that Zahn’s ratings on Fox had risen 90 percent. “That’s all just the growth of our network. All our shows are up.” Bill Carter, “Fox News Hires a Star Host over CNN Bid,” September 6, 2001.

  Murdoch and Black deal: Former New York Post reporter interview, confirmed by News Corp. executives.

  Harvey Weinstein’s influence on “Page Six”: Richard Johnson, conversation with author, autumn 2003.

  Dubious motives and good journalism can coexist: Jenkins, Market for Glory, 27.

  “He truly is Citizen Kane…”: Morgan, The Insider, 75.

  June 4 meeting: Interviews with Murdoch, Peter McPherson, Michael Elefante, Lon Jacobs, and James Murdoch.

  “I brought in James”: Murdoch interview, September 19, 2007.

  “That was actually my idea”: Jimmy Lee interview, October 15, 2007.

  Grand Havana Room: Murdoch and Lon Jacobs interviews.

  CHAPTER 10

  Warren Buffett calling: Peter McPherson, May 27, 2008.

  Leslie Hill looking for buyers: Interviews with Bancroft family members, Dow Jones executives, and board directors.

  Brad Greenspan’s offer: Brad Greenspan would later offer to lend Dow Jones the money to buy back half its stock from the family at $60 a share. Board members said they were not convinced he could source the funds.

  Chris Bancroft’s pursuit: Dow Jones executives and Bancroft family members and advisors.

  Management as true believers: Warren Phillips was actually perceived by Dow Jones executives and staff as something of a liberal.

  Peter Kann’s politics: Peter Kann interview, May 14, 2008.

  Murdoch the preferred buyer: Karen House, June 20, 2008.

  “You can’t write a fifty-fifty editorial”: As quoted in Tofel, Restless Genius, 87.

  “On our editorial page…”: Grimes, as quoted in Wall Street Journal editorial, “An Independent Newspaper. The Bancrofts and a Century of ‘Free People and Free Markets,’” June 6, 2007.

  Wall Street Journal editorial page history: Richard J. Tofel interview, Spring 2008.

  Murdoch loses circulation over front-page stories about Europe: Murdoch interview, October 23, 2007.

  Murdoch visits Kennedy: Murdoch interview, March 21, 2008.

  Murdoch as Star columnist: Jann Wenner, conversation with author, 2008.

  “The American Press might get…”: Kiernan, Citizen Murdoch, 145.

  Whitlam stops speaking: Ibid., 141.

  CIA plot: Ibid., 170.

  Murdoch’s coverage of Whitlam’s Khemlani loans scandal: Interviews with journalists at the Australian.

  Marian Faris Stuntz, now Cita Stelzer, interview, November 12, 2007.

  “Murdoch didn’t change a word of my copy…”: Joyce Purnick interview, January 21, 2008.

  Muslim crack: Murdoch interview, February 13, 2007.

  Wyatt as a diarist: Wyatt, Confessions of an Optimist.

  “A bloody menace…”: Bernard Ingham interview, May 12, 2008.

  Petronella Wyatt’s sex scandal with Boris Johnson: “Boris Johnson Sacked for Lying over Affair,” Times of London, November 14, 2004. Petronella Wyatt is now a columnist at the Daily Mail.

  Stelzer negotiates payout to widow Wyatt: “I remember when Woodrow died, and Woodrow, who lived well beyond his means, had waived the company pension in order to increase his current income. So I don’t know how you do that, but he did it. So now he ís dead and there is his widow and I go to see her and she says I have no money, which wasn’t true, because Woodrow waived his pension. So I went to Les Hinton. I said can you fix it? Give her the pension, anyhow. Talk to Rupert about it, tell him the story. So Rupert says to Les at some point, pay her the pension. Then he comes over and says, ‘I’m going to have tea with the widow Wyatt.’ I said, ‘Don’t go.’ He said, ‘Why not?’ I said, ‘Because she is going to cry and you are going to pay her more.’ ‘No, no, no, I won’t.’ But he did. But you know that is the way he was.” Irwin Stelzer interview, November 12, 2007.

  Murdoch and the Stelzers: Irwin and Cita Stelzer interview, November 12, 2007.

  Eric Breindel dies of AIDS in 1998: Reports of Breindel’s death always cited liver failure and chronic health problems. After his death, News Corp. will sponsor an annual award in his name. In 2007, as the deal with Dow Jones wrapped up, a Wall Street Journal columnist won. The New York Post, ordered to cover the event by Murdoch, runs a story the next day in which the Journal columnist’s name is spelled wrong.

  Murdoch’s fax on the Pope: Alan Howe interview, March 3, 2008.

  “He spends a few days in Washington…”: Frank Luntz interview, September 6, 2007.

  FCC closes its eyes to foreign ownership: Chenoweth, Rupert Murdoch, 122–125.

  The diaries of Alastair Campbell: Campbell, The Blair Years.

  Ailes’ independence: Roger Ailes, conversation with the author, Autumn 2003.

  Murdoch buys crèches: News Corp. executive interviews.

  “I’m a very curi
ous person…” Murdoch, October 23, 2007.

  Kindler believes he should have been hired: Rob Kindler interview, March 7, 2008.

  Hill and Bancroft stalling: Interviews with advisors and family members.

  Stuart Epstein and Thomson: Bancroft family members were sent an e-mail by the banker, advising them not to accept Murdoch’s $60 offer and asking them to come meet with Thomson.

  CHAPTER 11

  Water pipe bursts: Author visited the eighth floor on June 18, 2007.

  Chernin not given an opportunity: Murdoch’s opinion of Chernin’s reaction, expressed at his temporary home in a Trump building on Park Avenue on September 22, 2007.

  AUTHOR: What was the reaction inside the company, from other parts of the company, to the Journal deal? How did Peter Chernin react to it?

  MURDOCH: (Pauses.) He didn’t.

  AUTHOR: He didn’t oppose it?

  MURDOCH: I don’t know, but certainly nothing’s come back to me, not from anyone on the board level or anything like that. But it wouldn’t have been something he liked. He doesn’t read newspapers. But on the other hand, Peter is very territorial on everything out of Los Angeles…Not all of it to good effect, but we’ll see.

  Marcus Brauchli’s role in editorial agreement: Interviews with Bancroft family sources and their advisors.

  Josh Cammaker’s role in drafting agreement: Interviews with Bancroft family sources and their advisors.

  Murdoch conversation with Marty Lipton: Murdoch interview, September 19, 2007.

  “…telling them to fuck off”: Murdoch interview, September 19, 2007.

  Advisors reach out to Bancrofts: Interviews with Bancroft family sources and their advisors.

  Robert Thomson as architect of digital blah blah story: Interviews with News Corp. executives.

  Murdoch turns up at Prue and Alasdair’s house: Prudence Murdoch interview, February 28, 2008.

  Murdoch goes gray: Lachlan Murdoch interview, February 29, 2008.

  Meeting in Aspen, where they discuss him being a liability: News Corp. sources.

  Murdoch ridicules Anna’s books: “Banned by Fleet Street: Murdoch by His Butler,” Punch, July 4–17, 1998. Butler Philip Townsend writes: “I will never forget the hurt look on Mrs. Murdoch’s face as she flounced off to the bedroom when Rupert scoffed at her efforts to become a literary celebrity. They had just returned to the flat in St. James’s after dinner at a smart restaurant and I expected them to be in a good mood. While they were out, I had taken a call from a publicist in Los Angeles who was excited about the caliber of guests he had managed to get for a party to launch Mrs. Murdoch’s latest book.”

  Murdoch and Anna’s bargain: Interviews with Murdoch family members and News Corp. executives.

  Murdoch less interested in Diller: Barry Diller interview, January 28, 2008.

  Murdoch out of it in Hollywood: Interviews with various News Corp. executives and talent on the West Coast.

  “I mean he just comes in and it’s just…it’s you know…he hated Hollywood. It’s a place he doesn’t like, so he would come in and ramp about Hollywood. This is what I chose to do for my, you know, for a living. So there was always this, like a rub, you know. He felt like people in Hollywood didn’t work hard and, you know, people care about, you know, your people care more about where they go to lunch…and stuff like that. There is a portion of this is true, but there is a portion of every business where that is true…. So, it was like…it was very rough…going. You know actually, weirdly, as we got more successful the more he would attack. You know, ‘I hate the movies and I hate the kind of excess of it all.’” Interview with former Fox studio executive.

  “The base reason that he doesn’t like Hollywood is because he can’t actually function within it and control it. Because there are participants in it. He does not like participation. He just natively does not like it, he does not like joint ventures. He’s a wolf. He does not like those kinds of situations. He does not like it because he thinks it’s excessive and all these kinds of things and all these obvious kinds of things.” Interview with former Hollywood boss.

  “Wipe that smirk off your face!”: Interview with former Fox executive who attended the meeting.

  The Simpsons: Matt Groening, conversation with author, February 2002.

  Bingham family: Tifft and Jones, The Patriarch.

  Anna writes a novel: Anna Murdoch, Family Business, 1988.

  $650 million: Several published reports in Britain, the United States, and Australia.

  “Rupert didn’t like it one bit”: Matt Handbury interview, March 1, 2008.

  Sports: Knee-deep in his banking crisis, Murdoch battled against ITV in the auction for the Premier League rights, and it almost went the other way. At the last second before bids closed, ITV trumped BSkyB. So Murdoch’s lieutenant Sam Chisholm, who ran BSkyB, called to ask for another $40 million. It was four o’clock in the morning and Murdoch, who is not the easiest guy to understand at the best of times, let out a roaring mmmmmrrrhh sound. Chisholm took that as a yes. Three hours later, Murdoch woke up and called back to ask what was going on.

  CHISHOLM: Well, look, we put another forty million quid on the table.

  MURDOCH: Oh, you know, good heavens. Oh, really? Good heavens. Can we afford this?

  CHISHOLM: Well, look, probably not.

  MURDOCH: Okay. Six hours later, Chisholm called Murdoch. He wasn’t there—he was out at the barbershop. So Chisholm got the number of the barbershop and interrupted Murdoch’s haircut.

  CHISHOLM: Look, Christ, we won this bloody thing.”

  MURDOCH: God. Congratulations. Unbelievable. You know, walking up to this phone, I thought you were gonna ask me for another forty million quid.

  CHISHOLM: Would you have given it to me?

  MURDOCH: Without a question, without a question.

  Malone and Murdoch meet in 1994: Ken Auletta, “The Pirate,” New Yorker, November 13, 1995.

  Milken as Murdoch’s advisor: James B. Stewart, “Milken File,” New Yorker, January 22, 2001.

  Anna and Murdoch buy a house in Hong Kong: Interviews with former News Corp. executive, February 26, 2008.

  Matt Winkler tells Norm I quit.: Matt Winkler met Michael Bloomberg when he went to interview him for the Wall Street Journal.

  “because there’s this guy…”: Norm Pearlstine interview, September 12, 2007.

  CHAPTER 12

  Lippman leaves: John Lippman left the Wall Street Journal for the Los Angeles Times. Copy of memo sent to staff at the Los Angeles Times, obtained by LAObserved.com:

  To: The Staff

  From: Davan Maharaj, Business Editor and Sallie Hofmeister, Deputy Business Editor John Lippman is best known for his story about how a young Chinese-born TV executive named Wendi Deng arrived in the U.S., became the wife of Rupert Murdoch and rose to become a powerful force at his company, News Corp.

  When Murdoch, owner-in-waiting of the Wall Street Journal, was asked recently by Journal reporters if he had any problems with the paper’s coverage of his company, the media mogul replied that he had none—with the exception of that story about his wife. Asked if he would have taken any action against the writer, Murdoch assured: “No, he’s gone.”

  Now John is coming to Business as an editor in the entertainment group, replacing Jim Bates. Those of you fortunate to be here in the early 1990s will remember John as the television beat reporter who broke an endless string of stories and chronicled the congenital deal-making among media moguls in the pre-Internet age. He then left us for The Wall Street Journal, where he covered the movie industry and wrote the much-followed Hollywood Report column.

  At the WSJ, John was known for such front-page stories detailing how “Mighty Morphin’ Power Rangers” producer Haim Saban came to rule children’s television—Bob “Captain Kangaroo” Keeshan said he was appalled—and how a hot Pasadena start-up called Gemstar TV run by a Cal Tech engineer nearly collapsed from its aggressive accounting methods.

  After 25 year
s as a reporter covering entertainment and media, John will now apply those skills helping to shepherd the group’s stories into the paper. Before he arrived at The Times the first time, John worked at The Sunday Times in London, Variety, and Broadcasting & Cable magazine. He grew up in New Hope, Pa., and graduated from St. John’s College, Annapolis, Md. John has spent the past year trying his hand at public relations at Sitrick & Co.

  John lives in the foothills of Pasadena, where he spends his weekend running the trails of the San Gabriel Mountains and trying to amuse his wife, Eve Zukowski, a psychologist, and his two daughters, Rose, 9, and Sonja, 4, with his knowledge of Ancient Greek. Like Murdoch, they remain unimpressed.

  Lippman’s stash of photos: Interview with News Corp. executives. Phone calls to Lippman not returned.

  Anna changes her outfit six times a day: Former News Corp. executive, February 26, 2008. “I could never get to grips with Anna…I remember going up there to, to, to their house, lots of times. And Rupert would be there. I mean he looks like an unmade bed all the time…I’d go up on the weekend, and Rupert’s there in a pair of you know, his belt on inside out, God, honestly, I know, he’s amazing, sitting around, always looking at his fingernails…And, Anna would come out in the morning, right, and um, Rupert would be there sitting there, and then we’d have lunch, and Anna would have changed, into a, you know, into a nice dress or something. Anna would sort of do all those things but they didn’t, they didn’t have any real, they never seemed to me, to have any sort of real, connection. I don’t know and maybe he is, but he’s very affectionate with his children, he’s got a great affection for his children I mean, Anna calls him darling and this sort of stuff…But Anna didn’t ever seem to sort of, she was always very, she always looked like a bloody contrivance to me, Anna. I didn’t think there, I didn’t think there was much to her. You know, and she did a lot of, she did these things, you know it was all to commit, but I’m a sort of, earthy sort of character. And she’d be better off, instead of trying to change her dress six times a day, you know what I mean.”