Monday 20 November 2017

Charlie Rose suspended; U.S. sues AT&T; the CNN factor; Fox's settlement; digital media's "correction;" can Amazon save "Transparent?"

By Brian Stelter and the CNN Media team -- view this email in your browser!
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Exec summary: This is an early morning edition... It's been that kind of a day. DOJ is suing AT&T and Time Warner in federal court... A judge will be assigned to the case on Tuesday... Scroll down for the latest details...

Rose suspended

By now you've read the story. The details are disturbing. The Washington Post's Irin Carmon and Amy Brittain interviewed eight women who said that Charlie Rose "made unwanted sexual advances toward them, including lewd phone calls, walking around naked in their presence, or groping their breasts, buttocks or genital areas."

Shortly after the story hit, CBS suspended Rose from "CBS This Morning" and "60 Minutes" "while we look into this matter." The question in media circles: Will he be back? Highly unlikely. Bill Carter's view: "I think it's absolutely career-ending." He said on "AC360" Monday night, "I just don't see how anyone comes back from this."

CBS declined to comment on his fate. I'm told that CBS is not planning to have a fill-in for Rose on Tuesday morning. Co-hosts Norah O'Donnell and Gayle King will cover the developments. BTW, Rose was already scheduled to be off Wed/Thur/Friday for Thanksgiving... But he took off on Monday because he knew this story was coming...

"Charlie Rose" talk show in limbo

Via Tom Kludt's story: PBS announced that it has suspended the distribution of Rose's iconic talk show, saying it was "shocked to learn today of these deeply disturbing allegations." Bloomberg, which also airs Rose's interview show, said it too would stop airing it. The show was taped at Bloomberg HQ...

NYT and Business Insider spoke with other accusers

The WashPost was not the only news outlet working on this story. Business Insider published its version four hours later: "Three women who formerly interned for Charlie Rose told BI that they experienced inappropriate behavior." The NYT separately interviewed two women who said Rose "made unwanted advances toward them, trying to kiss them without their permission..."

"How did it stay quiet for so long?"

John Berman interviewed WashPost's Amy Brittain on CNN -- she described "patterns of behavior" -- so Berman asked "how did it stay quiet for so long?"

Rose's show has a small staff, Brittain said, and "there's no H.R. department. The only person, essentially, that anyone could report a complaint to would be his executive producer, who had been with him since 1991. And multiple women told us they felt like they really could not report this behavior. We did speak to one woman who did report it, and she was fired soon after reporting it..."

-- Re: the part of Rose's statement that vaguely disputed some of the details: "We sent Charlie Rose a detailed list of questions with every single allegation that was going to be contained in this story 24 hours before publication. At no point... did he want to engage on any sort of line-by-line challenge to any accusation in the story..."

Strength in numbers

Via Kludt's story: After the WashPost story was published, Kyle Godfrey-Ryan, one of the three named accusers, said on Facebook that she initially detailed her experiences off-the-record, until she read the transcripts from the other women who accused Rose. "Though many came before me, some women were attacked violently and repeatedly after the time I worked there. These stories helped me reframe my perspective. I felt that by withholding my identity, I was de-legitimatizing the experiences of these other women..."

 --> Roy Moore accuser Leigh Corfman said something similar on Monday's "Today" show... She said she agreed to go on the record when the reporter who contacted her reached other women with accounts of inappropriate behavior... Again, strength in #'s...
 --> And what's the common thread between the two cases? Meticulous reporting by the Post...

The new whisper network

In the wake of the Harvey Weinstein scandal, Weinstein's accusers described a "whisper network" that spread warnings about would-be predators. Now there's a DIFFERENT kind of "whisper network" in action -- men and women in NYC, DC, L.A. and elsewhere, all trading guesses and intel about which A-listers might be accused of misconduct next...
Scroll down for much more on THE TIPPING POINT, including Glenn Thrush's suspension from the NYT and the new accusation against Al Franken...
THE LEGAL BATTLE BEGINS...

UNITED STATES OF AMERICA v. AT&T INC. et al

The headline on Page One of Tuesday's NYT: "U.S. Sues to Stop AT&T's Takeover Of Time Warner." Right now on WSJ.com, it's the same lead, with a subhed titled "Wall Street Will See Washington in Court." This is going to be an antitrust battle for the ages -- unless the two sides somehow reach a settlement.

The Justice Department filed its paperwork around 5pm Monday... right after DOJ officials held an on-background briefing call to explain the lawsuit. "Our investigation shows this is an illegal merger that would harm consumers," one of the officials said on condition of anonymity.

Reporters repeatedly asked about influence from President Trump or White House aides. And the DOJ officials repeatedly denied any meddling at all. But suspicions remain very high. I sense a lot of confidence on the AT&T-Time Warner side, especially since the burden of proof is on the government...

 -- BTW: Justice confirmed that no state A.G. offices have signed on yet. The DOJ is going it alone for now...

 -- Read the suit for yourself: Here's the 23-page PDF...

The suit will be assigned to a judge on Tuesday...

So we'll start to find out more about timing. AT&T will obviously seek an expedited hearing... But this case will take a few months at the very least...

 -- Via Bloomberg: "AT&T attorney Daniel Petrocelli said the company is prepared to go to trial in as little as 60 days..."

AT&T's view

AT&T's general counsel David McAtee said the suit is a "radical and inexplicable departure from decades of antitrust precedent." The company thought it was on the path toward a Justice Department OK until Trump appointee Makan Delrahim took charge...

Let's talk about the "elephant in the room"

AT&T and Time Warner used CNN's studio resources in NYC to hold a 5:30pm press conference. This meant I could walk back and forth from the presser to my CNN live shots about the lawsuit -- convenient but definitely strange. This was the first time I had seen AT&T CEO Randall Stephenson at CNN's offices.

>> The key quotes from Stephenson: "I've done a lot of deals in my career, but I've never done one where we have disagreed with the DOJ so much on even the most basic of facts." He said "the rule of law is at issue here." 

IMHO, Stephenson sounded ticked off. In his opening remarks, he addressed the "elephant in the room," the theory that Trump's hatred of CNN is connected to the DOJ's decision: "There's been a lot of reporting and speculation whether this is all about CNN, and frankly I don't know. But nobody should be surprised that the question keeps coming up because we've been witnessing such an abrupt change in the application of antitrust law here..."

"A non-starter"

More from our CNN.com story: Stephenson did say that AT&T and Time Warner will continue to try to negotiate with the DOJ and to offer concessions that could allow the deal to close. But, he said, "Any agreement that results in us forfeiting control of CNN... is a non-starter..."

Strange bedfellows 

From Hadas Gold's story that just went up on CNNMoney: With this suit, some open-media advocacy groups and Democratic politicians are finding themselves in an interesting position... Praising Trump's DOJ for tough antitrust enforcement while cautioning that they're still concerned there are politics at play.

Here's how Sen. Richard Blumenthal handled it: "This action is highly significant as an apparent effort to protect competition and consumers." BUT "I remain appalled by President Trump's attempts to weaponize antitrust law because he disagrees with CNN's coverage, and I will continue to stand against any improper influence by the White House and any attempts by the Administration to chill freedom of speech..."

Top notes and quotes

 -- The NYT's main story about the suit: "On Monday, CNN was the only cable news channel to broadcast the AT&T news conference. Anchors reminded viewers that Mr. Trump had once tweeted a video that portrayed him body-slamming a wrestler with a CNN logo for a head..."

-- WashPost's Steven Zeitchik‏: "The DOJ-ATT lawsuit over Time Warner is big because it's the first such showdown of the Trump admin, and also because it's the greatest test yet of massive media integration in the Big Tech era..."

 -- Peter Kafka tweeted: "Time Warner used to own a big distribution company, and that was legal." (He's talking about Time Warner Cable.) "Now a big distribution company wants to own Time Warner, and the DOJ says that's not legal..."

 -- David Rothkopf tweeted: "FCC gets rid of cross-ownership rules permitting concentration of media power, net neutrality rules that will give the edge to the big guys...and argues it opposes ATT/Time Warner deal because it will result in concentration of power. So...which is it?"

"This pauses everything"

Dylan Byers emails: Monday's suit is likely to put a pause on future deals in the media biz and raise questions about the DOJ's antitrust standards. "This pauses everything," Rich Greenfield, the media and technology analyst, told CNN. "Nobody knows the rules of the road..." 

 -- What about Rupert Murdoch's talks to sell off most of 21CF? "This should be a cause of concern to anyone who is considering a major transaction," antitrust lawyer Kevin Arquit told Byers...

 -- Stephenson at Monday's presser: "I'd suggest this lawsuit has the whole world questioning what they can and cannot do..."

WSJ headline: "Jeff Bewkes May Have to Write a New Ending for Time Warner"

The WSJ's Joe Flint writes in Tuesday's paper: If Time Warner Inc.'s marriage to AT&T Inc. is derailed by the Justice Department, Time Warner Chief Executive Jeff Bewkes's perfect exit script will have to be rewritten and perhaps a new suitor found..."
🔌: Jeffrey Toobin and I will be on CNN's "New Day" bright and early, 6:20am ET, talking about the lawsuit...
For the record, Fox edition
 -- 21st Century Fox "has reached a $90 million settlement of shareholder claims arising from the sexual harassment scandal" at Fox News... (Reuters)

 -- As a part of the settlement, Fox has formed "an expert committee to address workplace and inclusion matters..." (THR)

-- In other news... "A former Fox News employee said the network blocked her from going to Moscow to investigate President Trump's links with Russia, one of several claims of news bias at 21st Century Fox made by former and current workers opposing its takeover of Sky..." (Bloomberg)

-- Maria Bartiromo "blames the media for taking her Trump allegation defense 'out of context...'" (Mediaite)

A "correction" in the world of digital media

Digiday's Lucia Moses surveying the anxiety-ridden state of digital publishing: "Forget the pivot to video; the pivot to reality is in full swing in digital media." She says "what's happening now is more of a correction than an upheaval." Read the rest here...

 -- Related: Ben Thompson's latest at Stratechery: "News from BuzzFeed in particular suggest the digital publishing bubble may be bursting. Axios, meanwhile, shows that subscriptions aren't the only answer -- but niche may be..."
THE TIPPING POINT

Vox exposes misconduct by Glenn Thrush

The headline on Laura McGann's story: "Glenn Thrush's history of bad judgment around young women journalists." McGann wrote about her own experience with the NYT correspondent and allegations leveled by other women... 

Thrush says he's "working hard to repair the damage..."

Tom Kludt emails: Glenn Thrush has been suspended as the NYT probes his background for any other instances of inappropriate behavior. That's the extent of the fallout -- for now, anyway. MSNBC, where Thrush signed as a paid contributor earlier this year, said it will await the outcome of the Times investigation and that Thrush currently has no scheduled appearances. Random House, which is due to publish a book on the Trump presidency by Thrush and Maggie Haberman, said that the "matter recently came to our attention and we are looking at it closely and seriously."

 -- Thrush's statement said in part: "I have not taken a drink since June 15, 2017, have resumed counseling and will soon begin out-patient treatment for alcoholism. I am working hard to repair the damage I have done..."

 -- Jezebel editor Joanna Rothkopf tweeted in response: "the classic 'i did nothing wrong' 'i'm in treatment' 1-2 punch."

Inside the NYT...

More from Kludt: A Times reporter told me that certain staffers were aware that the Vox story was coming, but the newsroom was nevertheless shocked by the accusations. Shortly after the story was posted, Dean Baquet addressed the allegations against Thrush, calling them "troubling."

"The alleged behavior described in the piece is clearly not in keeping with the values we expect from Times employees," Baquet said in an email to staff. "We plan a thorough investigation and while it is ongoing, Glenn will be placed on suspension."

NYT Co. CEO Mark Thompson sent out his own email later in the day in which he urged employees to approach managers or human resources with any concerns about sexual misconduct...

This fear is real

Time's Charlotte Alter tweeted this prediction on Monday night: "So many stories are going to come out over the next few weeks that it will get to a point where none of it sticks. If everyone's a pervert, then nobody is." Jessica Valenti has been making a similar point. "My fear," she wrote Monday, "is that the more of these that come out, the closer we are to people claiming this is just the way men are..."

New allegations on Capitol Hill

The day began with this scoop by CNN's MJ Lee: A second woman has accused Sen. Al Franken of inappropriate physical contact. The day ended with this BuzzFeed investigation about Rep. John Conyers...

Can Amazon save "Transparent?"

Lisa Respers France emails: Sandra Gonzalez and I looked at whether Amazon can save "Transparent," the show which helped to make the streaming giant a player in the TV industry. It's been a transformative series...
For the record, part two
-- Longtime CNN en Espanol anchor Patricia Janiot is joining Univision as a co-anchor of its late-night network newscast and its weekly newsmag... (Variety)

-- Maxwell Tani's latest: "Here's the early proposal for Anthony Scaramucci's book, which is now dead in the water..." (BI)

 -- Fox host Jeanine Pirro was ticketed for "driving 119 mph in a 65 mph zone" in Nichols, NY on Sunday... "I had been driving for hours to visit my ailing 89-year-old mom and didn't realize how fast I was driving. I believe in the rule of law and I will pay the consequences," Pirro said... (NYDN)

CBS warns of blackout for Dish customers

Frank Pallotta emails: Dish Network subscribers may be having their Thanksgiving turkey without the NFL games on CBS this year. CBS is warning Dish customers of a blackout that could deprive viewers of NFL and college football games over the long holiday weekend. The network said that "unless agreements are reached," Dish viewers should be prepared to lose the network overnight... Details here...

"Late Night in the Age of Trump"

Did you catch our CNN prime time special about how Trump has changed the late night landscape? It premiered at 9pm... and I wrote this companion story about how late-night comics are channeling the hopes and fears of their left-leaning audiences. Comedians like Stephen Colbert are treating the Trump presidency as a crisis, but also as a tremendous opportunity...
Quote of the day
"Come Thanksgiving, one group of people should truly be giving thanks for Trump: Late-night comedians. Trump has made late-night comedy great again..."

--Dean Obeidallah in his latest op-ed for CNN.com...
The entertainment desk
By Lisa Respers France:

 -- "Touched by an Angel" star Della Reese has died at the age of 86.

 -- Here's who won at this year's American Music Awards on Sunday night...

 -- Pink denies she was shading Christina Aguilera's performance at the awards show...

Lowry reviews "Coco"

Brian Lowry emails: Pixar has loaded up on sequels after a few rare misses with newer concepts. So it's nice to see the animation powerhouse get back to form and its roots with "Coco," an emotionally resonant story that features strong universal themes... Read more here...

A postscript about "Justice League"

Frank Pallotta emails: "Justice League" actually came in lower than expected after a disappointing box office opening over the weekend. The film nabbed $94 million domestically, down from the $96 million estimates the studio put out on Sunday...
"Reliable Sources" highlights

Is Moore's anti-media campaign working?

That was the question in the "A block" of Sunday's "Reliable Sources." We won't really be able to answer the Q until the votes are counted. But a recent Fox poll showed Moore's opponent Doug Jones 8 points ahead. On the show, the WashPost's Marc Fisher said that Moore's family and advisers have been trying to "discredit the reporting that's being done..." Watch the segment here...

Notable quotes

 -- AL.com's Anna Claire Vollers in Alabama: Being in a "very conservative state, we're used to hearing 'fake news' leveled at us pretty much all the time. All I can do is do my job..."

 -- Washingtonian staff writer Elaina Plott, also in Alabama: Many Moore supporters "see the very act of reporting as antagonistic..."

 -- Media literacy educator Michelle Ciulla Lipkin: "Information should be weighed differently." Case in point: "You shouldn't be able to debunk months and months of investigative reporting with a tweet..."

 -- Bill Carter: A consequence of the "digital duopoly" of Google and Facebook is that "everyone else is fighting literally for scraps..."

Hannity v. Carusone 

Also on Sunday's show, Angelo Carusone prez Media Matters asserted his three-month-long boycott effort against Hannity's show has been successful -- "we have statements from 30 companies that have committed that they're not going to advertise on Sean Hannity's program." I pointed out that there hasn't been a repeat of the Bill O'Reilly advertiser exodus, but he said "it's always been a long game..." His POV is that Hannity's show is uniquely "destructive..."

"It was pretty obvious..."

At the end of the hour, I was joined by Jacquelyn Martin, the photog who snapped that viral pic of the Mnuchins and the dollar bills. Earlier in the morning on "Fox News Sunday," Steven Mnuchin had claimed that he "didn't realize" the photos would be made public. So I asked Martin to respond. "I was there as the Associated Press photographer," she said... "There was another still photographer and several video crews as well. So, I think it was pretty obvious it was a media photo-op..."

How to catch up on the show

Listen to the entire program as a 40-minute podcast via iTunes... Watch the video clips on CNN.com... Or read the transcript here...
What do you think?
Email brian.stelter@turner.com... I appreciate every message. The feedback helps us craft the next day's newsletter!
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