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New York's 'epic' Fox News exposé: 5 takeaways - The Week

Beck, already his own media franchise, didn't need to play by Fox's rules. Worse, his over-the-top verbal bomb-throwing "almost engulfed Fox itself," tarnishing both its brand and the GOP's, in Ailes' view. Ailes had to carefully let Beck go without alienating fans — or delivering "a victory for the liberal media."

Now, Ailes "thinks Palin is an idiot," a "Republican close to Ailes" tells Sherman. "He thinks she's stupid. He helped boost her up. People like Sarah Palin haven't elevated the conservative movement."

Ailes "recognized that a Fox brand defined by Palin could be politically vulnerable," Sherman says. The national mood had shifted, and Ailes moved to tamp down the "silly season" he'd helped foster. Among other things, he urged star pundit Bill O'Reilly to "shoot down the 'birther' conspiracy and other assorted right-wing myths" dogging President Obama.