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Murdoch: Fox Sent Strong Signal With Ailes, O'Reilly Dismissals

James Murdoch, the CEO of 21st Century Fox, said the company hopes that the dismissal of Roger Ailes and Bill O'Reilly from Fox News Channel "sends a strong signal that there are behaviors that are not to be tolerated."

Speaking at the Paley International Council Summit, Murdoch told CNBC's Julia Boorstin that that the recently reported $32 million settlement that O'Reilly reached with Lis Wiehl, a former legal analyst at the network, "wasn't a company settlement, and it was news to me when I saw that number the other day."

Fox wants a corporate culture that is inclusive, Murdoch said, and wants to show that when wrongdoing is uncovered, as it was with former Fox News chief Ailes and with star host O'Reilly, that top management will act decisively.

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Boorstin asked about the newly reported O'Reilly settlement -- one of many he was reported to have reached while denying any inappropriate acts (saying he wanted to protect his family) -- in the context of it possibly complicating Fox's efforts to win approval to buy Sky in the United Kingdom. Murdoch said he continues to believe that acquisition will be approved in the first half of 2018.

Murdoch also praised Hulu, the SVOD service Fox owns a stake in and which is losing CEO Mike Hopkins, a former Fox executive, to Sony Pictures Television. (Another Fox executive, Randy Freer, is replacing him.) Murdoch said the Hulu Live service is an example of a user friendly and affordable service that combines current and past seasons of series plus live sports.

He said Fox also hopes emerging virtual pay TV services like YouTube TV and DirecTV Now succeed because that will help Fox as a content provider.