Ailes signs multi-year contract to stay on as Fox News CEO

Roger Ailes, who has led Fox News since its launch in 1996, has signed a new multi-year contract to stay on as chairman and CEO of the conservative cable news channel, a move that signals the Murdoch family's faith in his leadership of 21st Century Fox's key asset.

"I am grateful to Rupert Murdoch for taking the risk on Fox News to see it become the number one 24-hour news network in America," said Ailes, referring to the founder and executive chairman of Fox News' parent company, 21st Century Fox.

Ailes will jointly report to Rupert Murdoch and his sons, Lachlan Murdoch and James Murdoch, 21st Century Fox said. Lachlan Murdoch and James Murdoch have been promoted recently and will become the company's executive co-chairman and CEO, respectively, on July 1.

Ailes, who is also chairman of Fox Television Stations, has always reported directly to Rupert Murdoch. After 21st Century Fox announced Lachlan Murdoch and James Murdoch's promotions — Lachlan was non-executive chairman and James was co-COO — analysts speculated whether Ailes would stay on if he'd have to report to the sons in the corporate management shuffle.

Ailes' relationship with Lachlan Murdoch and James Murdoch has been described as fractious by Fox watchers. And Lachlan Murdoch's departure from the company in 2005, reports say, was largely due to his inability to work cooperatively with Ailes.

"I look forward to working with Rupert, Lachlan and James to do my part to help bring 21st Century Fox well into the future," Ailes said.

"Nearly two decades ago, Roger took a bold idea rooted in the belief that there was room for more choice in cable news," Rupert Murdoch said in a statement. "Roger and I have always had, and will continue to have, a special relationship. Lachlan, James and I are delighted that Roger will be leading key businesses for us and our shareholders for years to come, and he has our unwavering support."

Other details of the contract weren't disclosed.