December 7, 2021

Former Fox Exec Peter Rice Is Presupposed to Clear Up ABC Information, however Indignant Staffers Say He’s Failing

7 min read


Peter Rice, the highest Disney government overseeing ABC Information, boasted last year to staff about enhancing the tradition on the information division and never shying away from “tough conversations.” However three weeks after a bombshell lawsuit publicly accused Good Morning America’s former government producer of sexual assault, angered staffers say Rice has failed.

Late final month, a producer who works intently with GMA co-host George Stephanopoulos sued her former boss, Michael Corn, alleging he sexually assaulted her and created a hostile work atmosphere. Corn, now president of stories for Nexstar’s cable upstart NewsNation, has strenuously denied the allegations and ABC denied the girl’s claims that it did not correctly examine the state of affairs, and has vowed to combat in court docket.

Following the lawsuit, newly installed ABC News president Kim Godwin referred to as for an independent investigation into the allegations and the corporate’s dealing with of them. However rank-and-file ABC Information staffers who spoke with The Every day Beast stated they’re “furious” that Rice, as Godwin’s boss and as Disney’s tv chairman, has but to reply or handle workers concerning the state of affairs.

“Folks don’t really feel heard. The technique is a nasty one and it’s rubbing folks the incorrect method,” one senior ABC journalist instructed The Every day Beast. “They instructed us they had been going to vary the place for the higher however we appear to be going backwards.” ABC and Disney staff who spoke with The Every day Beast requested to take action anonymously out of concern of retaliation.

Moreover, staffers are indignant that regardless of guarantees to wash up the tradition on the community, the three executives who, in accordance with the lawsuit, had been made conscious of the sexual-assault allegations in 2017 have confronted little accountability, a number of ABC Information staffers stated. (The litigation cites GMA’s then-publicist Heather Riley, ABC Information enterprise government Derek Medina, and community lawyer Tanya Menton as having information of the claims however failing to correctly examine Corn.)

Throughout a beforehand unreported Sept. 2 assembly with the ABC Information Tradition Council, an employee-led committee established final summer time, Rice was pressed on the Corn allegations and was knowledgeable that staffers didn’t belief Disney’s processes for reporting harassment. In response to two folks on the decision, members had been left shocked when Rice failed to offer reassurance that Disney took the matter critically.

Elsewhere on the decision, Rice promised to deal with the information division on the state of affairs, sources stated, however two weeks later that assembly has but to be scheduled.

ABC Information and Disney didn’t reply to a request for remark.

Rice introduced the formation of the Tradition Council final July in a company-wide memo stating he would chair the committee with the hope that it will “harness our collective willpower to construct a tradition that empowers journalism” amid fallout from senior information government Barbara Fedida’s exit over allegations she made “racially insensitive remarks.” Rice wrote that he was “deeply optimistic about what we’ll obtain collectively.”

Months later, in accordance with three folks aware of the matter, members of the Tradition Council are lower than optimistic concerning the state of affairs at ABC Information, saying they really feel they had been used as “PR props” by Rice to quell a mounting disaster and that a number of of their initiatives have since been deserted.

Rice joined Disney in 2018, after a protracted profession underneath Rupert Murdoch at Fox leisure, and his tenure has been rife with battle with fellow executives. He got here from a looser tradition at Fox and has by no means overseen a information division and so, folks with information of the state of affairs say, a tradition conflict might have been inevitable.

“It was a nasty match from the beginning,” one Disney government stated. “He’s a blunt instrument who modifications his thoughts loads and might by no means admit when he’s incorrect,” stated one other government who labored with Rice at Disney.

Others who’ve labored alongside Rice stated he clashed early on with Disney government chairman Bob Iger. Elsewhere, sources stated, the January exit of ABC Information President James Goldston—whom Godwin changed this spring—was brought about partially by Rice’s ongoing disputes with the information government. In response to three folks aware of the state of affairs, Goldston and Rice repeatedly fought over key newsroom choices, together with the dealing with of a high-profile dispute involving Stephanopoulos. Goldston declined to touch upon this story.

And following Bob Chapek’s ascension as Disney’s new CEO, Rice has had a rocky few months together with being stripped of his profit-and-loss responsibilities earlier this year in a reorganizational transfer that successfully “neutered” him and left him “livid,” in accordance with a number of folks with information of the matter. Rice has overtly joked that he not has any energy at Disney and will go away the corporate, in accordance with two individuals who heard him make such remarks. Nevertheless, Rice reportedly signed a brand new contract with Disney final month.

The previous Fox government is claimed to have made the decision with fellow Disney execs to publicly combat the sexual-assault lawsuit, doubtlessly exposing the corporate to additional scrutiny and a monetary legal responsibility doubtlessly operating into tens of thousands and thousands of {dollars}.

What you might be seeing is a tradition conflict enjoying out.

That call, and any doable monetary and reputational hits to Disney, might affect Rice’s longevity on the firm, stated folks aware of the state of affairs. (On Wednesday, an amended version of the go well with claimed ABC Information retaliated in opposition to Corn’s accuser after she formally complained. The community stated this declare is “unfaithful.”)

“Disney might be paying for years for this,” stated Nancy Erika Smith, who represented Gretchen Carlson in her landmark sexual-harassment go well with in opposition to Fox Information. “They’ve a wise lady [Godwin] in cost and they need to hearken to her. What’s their PR price range in comparison with no matter these ladies’s calls for had been in mediation? And they’ll combat it? That is old-fashioned and it doesn’t work anymore.”

Moreover, Smith added, “That is ripe for punitive damages particularly when [Rice] is obstructing taking motion… I feel you’re looking at tens of thousands and thousands of {dollars}, to not point out the PR hit.”

Rice and Disney aren’t any strangers to the general public scrutiny that comes with authorized motion. In 2019, an arbitrator referred to as out Rice and Dana Walden, a former Fox colleague now serving as Disney’s chairman of leisure, for “false testimony in an attempt to conceal their wrongful acts” in litigation over earnings from Fox TV drama Bones. Disney, in the meantime, already faces a messy legal fight with actress Scarlett Johansson over the discharge of Black Widow on its streaming service.

Rice’s background as a profitable government within the Murdoch media empire has actually performed a task in his seeming struggles at Disney, folks with information of the matter instructed The Every day Beast.

A favourite of former boss Rupert Murdoch, the 55-year-old Disney government started his profession in 1987 as an intern at twentieth Century Fox and rapidly climbed up the ranks of the corporate. When Murdoch made one of many savviest performs of his profession and bought his movie studios to Disney in 2018 for a large payday, Rice was one of many few Fox executives who transitioned to the brand new house owners.

His shut relationship with Murdoch dates again greater than three many years to when Rice’s father Tom gave crucial support to the billionaire media mogul in his long-running battle with the print unions—an notorious saga often called the Wapping dispute.

“His father acquired him the job within the first place and he turned out to be a bloody gifted man,” Kelvin MacKenzie, who edited The Solar from 1981 to 1994, and was as soon as a detailed Murdoch confidant, instructed The Every day Beast. “With out [Tom] Rice, Murdoch would have been crushed and the unions would have been operating his enterprise. He’s massively indebted to Tom Rice.”

“Peter, an amazing government. A lot favored, particularly within the artistic group,” Murdoch emailed The Every day Beast when requested about Rice.

David Hill, a former Fox Sports activities boss and a good friend of Murdoch’s, instructed The Every day Beast that Rice just lately acknowledged to him that he’s nonetheless adjusting to ABC’s vastly completely different tradition from Fox’s.

“I feel he’s improbable, he’s nice. I do know Peter is honorable, all the things I learn about him is that he’s a improbable bloke,” Hill stated, echoing Murdoch’s reward. “He is without doubt one of the greatest on the planet. Have a look at what he did at Fox Searchlight.“

Certainly, Rice’s successes on the indie movie darling have been properly acknowledged: underneath his watch, Searchlight launched a few of its highest grossing, critically profitable movies together with Slumdog Millionaire and Little Miss Sunshine. Individuals who have labored with him stated Rice has a knack for figuring out and backing tasks that others handed on, and his stand up Fox has as a lot to do together with his Murdoch household connections because it does his expertise. His accomplishments at Fox Searchlight led to him being promoted to supervise the corporate’s TV property.

However it’s not misplaced on Hollywood insiders that Rice has struggled to acclimate to the extra buttoned-up tradition at Disney.

“Peter is somewhat reluctant to get his fingers soiled,” one former colleague instructed The Every day Beast. “He isn’t overwhelmingly joyful there.” A former Disney government added: “That is about two very completely different cultures. [Peter] was wildly profitable at Fox. I’ve a variety of admiration for him. What you might be seeing is a tradition conflict enjoying out.”



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