The Paula Zahn controversy is the latest salvo in the war pitting all-news cable ratings king Fox News Channel against struggling CNN.
And now it’s getting ugly.
Fox News Channel is suing Zahn’s agents, N.S. Bienstock, for “inducing” Zahn to break her Fox News Channel contract and bolt to CNN and for “illegally brokering a deal with another network.”
FNC fired Zahn Wednesday when it learned she had been negotiating with CNN to host its new morning show – while still under contract to Fox News Channel.
“Never in my legal life have I seen behavior like this,” said Dianne Brandi, vice president of legal affairs for Fox News.
“The way in which N.S. Bienstock acted here crossed the line,” Brandi said. “Even lawyers and agents have procedures and etiquette – and [N.S. Bienstock] crossed a big line here.”
It’s a line that continues to move in favor of Fox News Channel, which has made tremendous ratings strides with the likes of Bill O’Reilly – cable’s top-rated prime-time host – business guru Neil Cavuto and anchor Shepard Smith.
FNC, like The Post, is owned by News Corp.
FNC further bolstered its lineup by raiding CNN and hiring renowned business reporter Terry Keenan, who joined Cavuto’s team.
CNN, which revamped its “Headline News” franchise by hiring ex-“NYPD Blue” actress Andrea Thompson, reportedly made overtures to both O’Reilly and Cavuto in a bid to poach the FNC stars.
“CNN is in awful trouble – and they’re stealing one of our lowest-rated people [in Zahn],” said Kevin Magee, Fox News Channel’s vice president of programming.
“It’s absolute desperation on their part,” he said. “They’re going to do anything they can think of at this point – they’re going to run around and try to hire anybody. You’re going to see a lot of crazy stuff happening.
“This is simply the latest round,” Magee said. “And I don’t think [Zahn’s hiring] is going to work for them. I don’t think putting Paula in a window at 7 a.m. is going to magically cure what’s been going on at CNN for 20 years.”
During a CNN press conference yesterday, Zahn said she was “deeply disappointed” by FNC’s reaction to her job change – then proceeded to read from a written statement, referring all reporters’ questions to her statement.
“I was prepared to stay at Fox through the end of my contract and everything I have done has been totally consistent with my contractual obligations to Fox,” Zahn’s statement said.
“I have had legal counsel guiding me throughout, and they have consistently confirmed the appropriateness of my actions and those of my representatives.”
Her agents also said their actions were aboveboard. “N.S. Bienstock believes that this lawsuit is totally without merit,” said Tom Goodman, spokesman for the agency. “None of our actions, as agent for Paula Zahn, were in violation of her contract with Fox News.
“We are fully confident that this will be quickly resolved in our favor.”
Zahn, CNN chief Walter Isaacson and CNN general manager Sid Bedingfield all declined to discuss the legal ramifications of Zahn’s hire – or who approached whom first.
FNC’s Brandi said there could be more legal action down the line – perhaps against Zahn and/or CNN, who weren’t named in the lawsuit filed yesterday.
“We are keeping all of our options open,” she said.