January 1996, Midtown Manhattan.

In the News Corp offices, Roger Ailes grins for the cameras. A month ago he looked finished,

his career at NBC over, his days as a Republican advisor fading in the rearview mirror.

But then Rupert Murdoch called.

Now he and Murdoch are side by side before a crush of reporters, and they're announcing the creation of the Fox News Channel.

Murdoch explains the rationale for his move into 24-hour news.

The world's changing faster and faster. Whether through technology or politics,

there's more news affecting everybody every day. The appetite for news,

particularly news that explains to people how it affects them, is expanding enormously.

Murdoch tells the room Fox News will launch within the year.

It will have an annual budget of $80 million.

What he doesn't say is that's less than a quarter of CNN's.

Ailes jumps in next, eager to make clear that Fox News's meager budget won't hold it back.

I've always admired Mr Murdoch's ability to get things done, move quickly and act entrepreneurially.

When everybody says you can't do it, you get up the next day and find that

Rupert Murdoch has done it a reporter raises his hand

Mr. A

both you and Mr. Murdoch are known for your political conservatism.

Will your channel be objective?

The Fox News channel will not be anything other than objective.

I've been out of politics for several years now.

Another reporter throws a question, checking his note. politics for

...