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The resignation, effective immediately, was announced by the network's parent company, 21st Century Fox. Two weeks ago, Ailes was sued for sexual harassment by Gretchen Carlson, a former host of Fox & Friends who left the company last month when her contract wasn't renewed. 

Carlson said her career was sabotaged after she refused Ailes' sexual advances. She also had "reported disparaging treatment in the newsroom," including what she said was a "sexist and condescending" way her co-host, Steve Doocy, dealt with her, her lawsuit claimed.

Ailes has vigorously denied Carlson's claims. But  21st Century Fox immediately launched an internal investigation, interviewing other employees. This week, a lawyer for Megyn Kelly, the network's rising star, acknowledged that she spoke to the investigators from law firm Paul, Weiss. In the interview, she revealed that she also was sexually harassed by Ailes in the past, according to a report by New York magazine. Other women also have recently told New York magazine's Gabriel Sherman that they were sexually harassed by Ailes prior to his founding of Fox News in 1996.

With the scandal erupting rapidly, Fox executives began negotiating the 76-year old executive's departure. Tuesday, Ailes' lawyer, Susan Estrich, confirmed his negotiation with 21st Century Fox for severance. The company didn't immediately comment on the severance package. But Sherman tweeted Thursday that it could be as much as $60 million, paid out over time and including fees for consulting Fox after Ailes' formal exit.