For a media and communications professional, Rupert Murdoch sure is Kremlin-like when it comes to controlling the message coming out of his own outlets about his family and their global media empire.
Fox News has still barely reported on the record US$787.5 million defamation settlement with Dominion, and its big three hosts — Tucker Carlson, Sean Hannity and Laura Ingraham — didn’t even mention it on their Tuesday-night programs.
At least Andrew Bolt was prepared to slam the settlement as a “disaster” on his Wednesday-night slot on Sky News, accusing Fox News of allowing hosts to pedal lies and conspiracy theories to retain their audience.
Meanwhile, across the Pacific, the Fox Corp lawyers literally ran from the Delaware courthouse after the settlement was reached, leaving the field wide open to Dominion to service the 100-plus media professionals who had gathered for the opening day of the trial.
At first, Fox Corp only published this terse 71-word press release from its subsidiary Fox News Media, which quoted “the network” saying:
We are pleased to have reached a settlement of our dispute with Dominion Voting Systems. We acknowledge the Court’s rulings finding certain claims about Dominion to be false. This settlement reflects FOX’s continued commitment to the highest journalistic standards. We are hopeful that our decision to resolve this dispute with Dominion amicably, instead of the acrimony of a divisive trial, allows the country to move forward from these issues.
As if this was about “the country” moving forward, as opposed to the company.
It wasn’t until the following day that Fox Corp issued a near-identical one-paragraph quote to shareholders via the US SEC, although this time it was from “the company” and the preamble actually mentioned the settlement.
In these situations, the leadership of a public company normally steps up and takes responsibility for the loss, and the disclosure specifically deals with the after-tax impact on profit. Instead, the Murdochs are silent.
For instance, when the Commonwealth Bank agreed to pay $700 million to settle an AUSTRAC money laundering case in June 2019, it made this 40-page ASX announcement, which even included a full copy of the settlement agreement.
CBA CEO Matt Comyn made a grovelling apology and shareholders were advised about the earlier $375 million provision and how the fine would be treated in the upcoming full-year results.
Fox Corp has refused to say anything about whether the settlement is partially covered by defamation insurance. The silence on this matter suggests the entire bill will be met by shareholders.
Then there is the question of whether the settlement is tax deductible for Fox Corp, which recent US commentary suggests it probably will be.
In 2021-22, Fox Corp declared pre-tax earnings of US$1.7 billion and then handed over US$461 million in corporate tax to the US government, reducing the net profit available for shareholders to US$1.23 billion.
While at one level it is scandalous that US taxpayers will cop a hit from the tax-deductible Fox settlement, they’ll recover much of it through the super profits that Dominion will report, given the settlement is estimated to be about 10 times the value of the company as a going concern.
Rupert Murdoch, 92, initially tried to avoid giving evidence by claiming he was too old, but Delaware Judge Eric Davis called his bluff. He was then listed to be the second witness in the six-week trial.
His obliging, hand-picked Fox board saved him from this ordeal. And Fox was also presumably prepared to turbo-charge the dollar cost in order to avoid issuing any form of apology, particularly something broadcast on Fox News that would be replayed again and again down the years.
In terms of accountability for this mess, the focus now turns to the Fox Corp remuneration committee, which is chaired by former BHP chairman Jacques Nasser.
Murdoch men have extracted hundreds of millions in salary and bonuses from public companies they’ve controlled since 2000. Last year it was US$18.4 million for chairman Rupert and US$21.75 million for co-chair and CEO Lachlan, a tidy A$60 million for the duo that they clearly do not need. Remember, the Packer family always worked for free at public companies they controlled.
The extended Murdoch family are worth an estimated $30 billion, with the largest chunk of that tied up in Disney shares, something which Florida Governor Ron DeSantis perhaps should consider as he goes to war with the Mouse.
Given that the Murdoch family owns less than 20% of Fox Corp, its direct share of the Dominion settlement is only around $200 million, which is not even 1% of the family fortune.
The least they can do is say sorry, take a pay cut and improve their editorial practices. However, based on this feral Rowan Dean attack on the Indigenous Voice to Parliament on Sky News last Sunday, it’s sadly going to be business as usual.
