Monday, August 03, 2009

Voices From Above Silence a Cable TV Feud

NY Times By BRIAN STELTER

It was a media cage fight, televised every weeknight at 8 p.m. But the match was halted when the blood started to spray executives in the high-priced seats.

For years Keith Olbermann of MSNBC had savaged his prime-time nemesis Bill O’Reilly of the Fox News Channel and accused Fox of journalistic malpractice almost nightly. Mr. O’Reilly in turn criticized Mr. Olbermann’s bosses and led an exceptional campaign against General Electric, the parent company of MSNBC.

It was perhaps the fiercest media feud of the decade and by this year, their bosses had had enough. But it took a fellow television personality with a neutral perspective to help bring it to at least a temporary end.

At an off-the-record summit meeting for chief executives sponsored by Microsoft in mid-May, the PBS interviewer Charlie Rose asked Jeffrey Immelt, chairman of G.E., and his counterpart at the News Corporation, Rupert Murdoch, about the feud.

Both moguls expressed regret over the venomous culture between the networks and the increasingly personal nature of the barbs. Days later, even though the feud had increased the audience of both programs, their lieutenants arranged a cease-fire, according to four people who work at the companies and have direct knowledge of the deal.

In early June, the combat stopped, and MSNBC and Fox, for the most part, found other targets for their verbal missiles (Hello, CNN).

“It was time to grow up,” a senior employee of one of the companies said.

The reconciliation — not acknowledged by the parties until now — showcased how a personal and commercial battle between two men could create real consequences for their parent corporations. A G.E. shareholders’ meeting, for instance, was overrun by critics of MSNBC (and one of Mr. O’Reilly’s producers) last April.

“We all recognize that a certain level of civility needed to be introduced into the public discussion,” Gary Sheffer, a spokesman for G.E., said this week. “We’re happy that has happened.”

The parent companies declined to comment directly on the details of the cease-fire, which was orchestrated in part by Jeff Zucker, the chief executive of NBC Universal, and Gary Ginsberg, an executive vice president who oversees corporate affairs at the News Corporation.

Mr. Olbermann, who is on vacation, said by e-mail message, “I am party to no deal,” adding that he would not have been included in any conversations between G.E. and the News Corporation. Fox News said it would not comment.

Civility was not always the aim of Mr. Olbermann and Mr. O’Reilly, men who, in an industry of thin skins, are both famous for reacting to verbal pinpricks. Both host 8 p.m. programs on cable news in studios a few blocks apart in Midtown Manhattan.

The conservative-leaning Mr. O’Reilly has turned “The O’Reilly Factor” into a profit center for the News Corporation by blitzing his opponents and espousing his opinions unapologetically. He found his bĂȘte noire in the liberal-leaning Mr. Olbermann, the host of MSNBC’s “Countdown,” who saw in Mr. O’Reilly a regenerating target he nicknamed the “Bill-o the Clown.”

The 6-foot-4 Mr. Olbermann started sniping regularly at the also 6-foot-4 Mr. O’Reilly in late 2005, sometimes making him the subject of the “Countdown” segment, the “Worst Person in the World.” Mr. O’Reilly was also a stand-in for the perceived offenses of the top-rated Fox News.

By punching up at his higher-rated prey, Mr. Olbermann helped his own third-place cable news show. “Honestly, I should send him a check each week,” he remarked to a reporter three years ago. Fox noticed. Mr. Murdoch remarked to Esquire last year that “Keith Olbermann is trying to make a business out of destroying Bill O’Reilly.” Mr. O’Reilly refused to mention his critic by name on the “Factor,” deeming him a “vicious smear merchant,” but he regularly blamed Mr. Zucker for “ruining a once-great brand,” NBC.

In late 2007, Mr. O’Reilly had a young producer, Jesse Watters, ambush Mr. Immelt and ask about G.E.’s business in Iran, which is legal, and which includes sales of energy and medical technology. G.E. says it no longer does business in Iran.

Mr. O’Reilly continued to pour pressure on its corporate leaders, even saying on one program last year that “If my child were killed in Iraq, I would blame the likes of Jeffrey Immelt.” The resulting e-mail to G.E. from Mr. O’Reilly’s viewers was scathing.

The messages hit nerves on both sides. Mr. Immelt remarked to MSNBC staff members last summer that he would “never forgive Rupert Murdoch” for Fox’s behavior, according to two people who were present. In private phone calls, the Fox News chairman, Roger Ailes, told NBC officials to end the attacks.

In February, Mr. Zucker told Newsweek what he had told Mr. Olbermann privately: “I wish it weren’t so personal.” The previous year, Mr. Murdoch said that Mr. O’Reilly “shouldn’t be so sensitive” to the attacks lobbed by MSNBC.

Over time, G.E. and the News Corporation concluded that the fighting “wasn’t good for either parent,” said an NBC employee with direct knowledge of the situation. But the session hosted by Mr. Rose provided an opportunity for a reconciliation, sealed with a handshake between Mr. Immelt and Mr. Murdoch.

But like any title fight, the final round could not end without an attempted knockout. On June 1, the day after the abortion provider George Tiller was killed in Kansas, Mr. Olbermann took to the air to cite Mr. O’Reilly’s numerous references to “Tiller, the baby killer” and to announce that he would retire his caricature of Mr. O’Reilly.

“The goal here is to get this blindly irresponsible man and his ilk off the air,” he said.

The next day, Mr. O’Reilly made the extraordinary claim that “federal authorities have developed information about General Electric doing business with Iran, deadly business” and published Mr. Immelt’s e-mail address and mailing address, repeating it slowly for emphasis.

Then the attacks mostly stopped.

Shortly after, Phil Griffin, the MSNBC president, told producers that he wanted the channel’s other programs to follow Mr. Olbermann’s lead and restrain from criticizing Fox directly, according to two employees. At Fox News, some staff members were told to “be fair” to G.E.

The executives at both companies, it appears, were relieved. “For this war to stop, it meant fewer headaches on the corporate side,” one employee said.

Tensions still simmer between the two networks, however, and staff members have been unwilling or unable to stop the strife altogether. This week, for instance, the Fox host Glenn Beck called Mr. Obama a racist, prompting rebukes on a number of MSNBC shows. But for now, the daily back and forth has quieted.

“They’ve won their respective constituencies,” said a former member of MSNBC’s senior staff. “They don’t need to do this anymore, really.”

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