Axios PM

June 07, 2023
🕶️ Hello, Wednesday happy hour! Today's PM — edited by Erica Pandey — is 717 words, a 2.5-min. read. Thanks to Sheryl Miller for the copy edit.
1 big thing — Scoop: Fox threatens to sue Tucker Carlson

Fox News notified Tucker Carlson's lawyers today that the former prime-time anchor violated his contract with the network when he launched his own Twitter show yesterday, according to a copy of a letter obtained by Axios' Sara Fischer.
- Why it matters: A breach of contract claim sets Fox up to explore legal action against Carlson, a move that would intensify the already thorny public battle between the two parties.
Carlson’s lawyers told Axios that any legal action by Fox would violate his First Amendment rights.
- “Fox defends its very existence on freedom of speech grounds. Now they want to take Tucker Carlson’s right to speak freely away from him because he took to social media to share his thoughts on current events," said Carlson's lawyer, Bryan Freedman, in a statement to Axios.
⚡ Catch up quick: Carlson was ousted from Fox News in April.
- Carlson, Axios reported, has since accused Fox of fraud and has argued that Fox breached his contract when its senior executives reneged on promises made to Carlson "intentionally and with reckless disregard for the truth."
What's happening: Shortly after Carlson posted the first episode of his new show on Twitter yesterday evening, Fox News general counsel Bernard Gugar sent a letter to Carlson’s lawyers saying Carlson "is in breach" of his contract agreement.
đź’ˇ Between the lines: Carlson's legal team, according to a source familiar with its thinking, objects to the network's effort to block Carlson's Twitter appearances because, they believe, Twitter does not directly compete with Fox News.
- Fox believes it has been working in good faith to reach an amicable agreement, a source told Axios.
đź” The big picture: Carlson has been leveraging allies, such as former NFL quarterback Brett Favre, to pressure Fox to let him out of his contract.
- A source told Axios that Carlson was told by a senior Fox executive that the goal is to keep him sidelined until 2025.
2. CNN chaos
Photo: Kevin Mazur/Getty Images
Chris Licht, the embattled CEO of CNN, is out at the company after 13 months.
🖼️ The big picture: Licht’s leadership became untenable following a damning profile about him published by The Atlantic last week, Axios' Sara Fischer writes.
- A CNN source tells Axios that Licht told top talent internally: "I hope the people at CNN get the leader they deserve."
🔎 Why it matters: CNN insiders tell us the “noble mission” for Licht — and now for his successor — is to restore the public trust that was lost during the Trump years. CNN insiders see that as imperative for the business, for journalism and for democracy.
Warner Bros. CEO David Zaslav — Licht's former boss — formally announced the news of Licht's upcoming departure on this morning's CNN editorial call.
- "For a number of reasons, things didn't work out, and that's unfortunate," Zaslav said. "It's really unfortunate. And ultimately, that's on me. And I take full responsibility for that."
đź§ Between the lines: Licht joined CNN at a chaotic time, but his efforts to turn the network around ultimately failed to increase ratings and drive credibility within its newsroom.
- Licht's most controversial move was the decision to host a live town hall event with former President Trump in prime time. The town hall was criticized for giving Trump a platform to lie.
đź” What's next: Zaslav said the search for a new CEO is underway.
- Share this story ... Disclosure: This author is a CNN contributor.
3. Catch me up

- 🔥 Above: A look at decreasing air quality in New York City today. Wildfires burning across Canada are pouring smoke into the Great Lakes, Northeast and Mid-Atlantic states. The smoke can cause serious health complications. Go deeper.
- đź’° Some of the highest profile crypto companies still standing have been pummeled by a flurry of federal charges, raising fresh questions about whether the crypto ecosystem can survive. Go deeper.
- âš˝ Lionel Messi is headed to Major League Soccer and joining Inter Miami, rejecting a more lucrative deal from Saudi Arabia's Al-Hilal. More from AP.
4. âšľ Parting shot

Rep. Nancy Pelosi throws the ceremonial first pitch before the start of the Washington Nationals and Arizona Diamondbacks game at Nationals Park yesterday in D.C.
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