The key to decoding Fox News isn’t Bill O’Reilly or Sean Hannity. It isn’t even News Corp. chief Rupert Murdoch. To understand what drives Fox News, and what its true purpose is, you must first understand Chairman Ailes. “He is Fox News,” says Jane Hall, a decade-long Fox commentator who defected over Ailes’ embrace of the fear-mongering Glenn Beck. “It’s his vision. It’s a reflection of him.”
Fear, in fact, is precisely what Ailes is selling: His network has relentlessly hyped phantom menaces like the planned “terror mosque” near Ground Zero, inspiring Florida pastor Terry Jones to torch the Koran. Privately, Murdoch is as impressed by Ailes’ business savvy as he is dismissive of his extremist politics. "You know Roger is crazy," Murdoch recently told a colleague, shaking his head in disbelief. "He really believes that stuff."
To watch even a day of Fox News – the anger, the bombast, the virulent paranoid streak, the unending appeals to white resentment, the reporting that’s held to the same standard of evidence as a late-October attack ad – is to see a refraction of its founder, one of the most skilled and fearsome operatives in the history of the Republican Party. As a political consultant, Ailes repackaged Richard Nixon for television in 1968, papered over Ronald Reagan’s budding Alzheimer’s in 1984, shamelessly stoked racial fears to elect George H.W. Bush in 1988, and waged a secret campaign on behalf of Big Tobacco to derail health care reform in 1993. "He was the premier guy in the business," says former Reagan campaign manager Ed Rollins. "He was our Michelangelo."