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At 5:00 p.m., Ailes assembled his network’s election team in the second-floor conference room to discuss the night’s coverage. “Guys,” he told them, “no matter how it goes, don’t go out there looking like someone ran over your dog.” But as Fox’s exit poll team presented the numbers, Ailes came undone. “They weren’t good for Romney,” a person in the room said. “Roger started arguing about how the sample skewed toward liberals.” Ailes said, “Liberals like to share their feelings, and conservatives work, so they don’t vote until later.” Arnon Mishkin, the head of Fox’s decision desk team, told Ailes that the data accounted for a sample skew. It appeared that Romney was going to be trounced. Worse, so-called late deciders were breaking for Obama.

“Thank you, Chris Christie,” Ailes grumbled. He was still furious that Christie had given Obama a bipartisan photo op on the New Jersey coastline after Hurricane Sandy.

“Actually, that’s not true,” Mishkin said. “We asked people that. There’s no data in the polling to suggest that Sandy hurt Romney.”

“Well, hugging the guy couldn’t help people feel good about Romney either,” Ailes countered.

Data was no substitute for what his gut told him. “Everyone left that room with the knowledge that Roger didn’t believe the polls,” a participant said. His opinion would be channeled on-air later that night, with embarrassing consequences.

About an hour later, Ailes settled into a plush chair in the Fox Sports Suite. A couple hundred people, including Rupert Murdoch, mingled in the room snacking on sushi and lamb kabobs. One Fox executive recalled he made sure to avoid eating the raw fish in front of Ailes. “Sushi is liberal food,” he explained. The election coverage played out on eight flat-screen televisions mounted on the wall. Around 8:00, Beth arrived. The PCN&R was going to press that night. She sat beside Ailes reviewing the week’s edition on her iPad. Shortly before 11:00, with Romney’s chances fading, Roger and Beth called it a night. “I want to kiss Zac good night before he goes to sleep,” Ailes told a journalist, trying to put the best spin on the outcome. “If Romney wins, it’s good for the taxpayers. If Obama wins, it’s great for our ratings.”

Downstairs, Arnon Mishkin and Fox’s number crunchers were preparing to call Ohio for Obama. “Let’s remember this is Fox News calling Ohio. This will say something beyond Ohio going for Obama,” Mishkin told Fox brass. Fox executives told Mishkin to get the numbers right and ignore the politics: “If we think Ohio has gone Obama, we call Ohio,” said a Fox News executive.

Bret Baier announced the call on set. “That’s the presidency, essentially,” he said. Instantly, Fox phones lit up with angry phone calls and emails from the Romney campaign, who believed that the call was premature. After Baier’s Ohio call, Rove took their complaints public, echoing Ailes’s earlier comments, and conducting an on-air primer on Ohio’s electoral math to dispute the outcome. With the network divided against itself, senior producers held a meeting to adjudicate. The decision desk stood their ground. They knew how momentous the call was. In the end, producers had to find a way to split the difference. Megyn Kelly walked through the newsroom to interview the decision desk. “This is Fox News,” a person in the room said, “so anytime there’s a chance to show off Megyn Kelly’s legs they’ll go for it.”

By midnight, Rove reluctantly seemed to concede. The moment became a symbol of the denialism that had taken hold on the right in the closing days of the election. On air, Dick Morris had predicted a Romney landslide, putting Romney’s odds of winning at 90 percent. In private, some Fox staffers thought the network’s boosterism had become a joke. At a rehearsal on the Saturday before the election, Megyn Kelly chuckled when she relayed to colleagues what someone had told her: “I really like Dick Morris. He’s always wrong, but he makes me feel good.”

Only half of Roger Ailes’s grand plan had come to pass. While Fox’s ratings were still unchallenged, the channel had failed to elect the next president—the circus on Fox had complicated the effort as well as assisted it. By giving airtime to the most outlandish voices on the right, Fox had helped distort the debate over the country’s future, making it easier for voters to dismiss Republican arguments. Ailes’s personal political impulses—to enlist Chris Christie, or David Petraeus—were at odds with the vivid political comedy Fox often programmed. It turned out that television and politics were different disciplines. In pursuit of ratings, Fox had sharpened national divisions—and the division had favored the Democrats. Since the Nixon administration and TVN, the right had dreamed of a television channel that could make its case with the American public, to balance the debate. “You’re a hero to our people,” one prominent conservative told Ailes at a gala at the Kennedy Center. But in 2012, by this measure, Fox had been a failure.

After Mitt Romney’s 2012 defeat, Mark Rozell, the acting dean of the George Mason University School of Public Policy, and Paul Goldman, a former chairman of Virginia’s Democratic Party, wrote an essay noting the inverse relationship between the rise of conservative media and the Republican Party’s ability to win national majorities. “When the mainstream media reigned supreme, between 1952 and 1988, Republicans won seven out of the ten presidential elections,” they reported. “Conservative talk show hosts and Fox News blame the ‘lamestream’ national media’s ‘liberal bias’ for the GOP’s poor showing since 1992. Yet the rise of the conservative-dominated media defines the era when the fortunes of GOP presidential hopefuls dropped to the worst levels since the party’s founding in 1856.” Perhaps the freak show had become too freakish.

The post-election soul searching that consumed the Republican Party took place inside Fox News as well. Ailes, like other GOP heavyweights, took orchestrated steps to reposition his channel in the post-election media environment, freshening story lines—and, in some cases, changing the characters. Bill Shine sent out a directive mandating that producers needed permission from senior executives before booking Karl Rove or Dick Morris. In February, Fox declined to renew Morris’s contract. Rove made the cut. Palin didn’t. The previous month, the news broke that she and Fox had parted ways.

In meetings, Ailes told producers that viewers were tired of politics. Between Election Day and the inauguration, Fox toned down its coverage. In mid-December, in the immediate aftermath of the horrific school shooting in Newtown, Connecticut, that left twenty children dead, Ailes told producers not to program segments heavily debating the politics of the Second Amendment. A day after the shooting, David Clark, the executive producer in charge of Fox’s weekend coverage, sent producers instructions. “This network is not going there,” Clark wrote one producer on Saturday night. Fox also spiked a pro–assault weapon column by Foxnews.com contributor John Lott, one of the country’s most vocal Second Amendment absolutists. “They didn’t send me an e-mail. I got a call,” Lott explained. “They said, ‘This is just too sensitive.’ ” The policy wasn’t ironclad. Some pundits and anchors did discuss the politics of the tragedy. But Fox hosts would let the audience’s emotions cool before cranking up the volume of the gun rights debate.

The reprieve ended on the morning of January 21, 2013—inauguration day. The hosts of Fox & Friends signaled how the network felt about the opening of Obama’s second term. “As if a cold Monday in January wasn’t dreary enough, today has been dubbed—they figured this out about five years ago—‘Blue Monday,’ the most depressing day of the year,” Steve Doocy said. To help viewers cope, they welcomed to the set self-help guru Larry Winget, the “Pitbull of Personal Development.” Throughout the morning, the mood on-screen was melancholy. “This was an unyielding, uncompromising espousal of a liberal agenda,” Chris Wallace said, following Obama’s speech.