This is a RUSH transcript from "The O'Reilly Factor," December 9, 2009. This copy may not be in its final form and may be updated.

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BILL O'REILLY, HOST: In the "Personal story" segment tonight: Each year, Barbara Walters has a special entitled "The 10 Most fascinating People" on ABC. You can see it tonight at 10:00 p.m. And here is Ms. Walters. Now, once again, we have you on pretty much every year for this. What's the criteria for being fascinating?

Click here to watch Barbara Walters in the No Spin Zone!

BARBARA WALTERS, ABC NEWS: Well, first of all, the word is "fascinating." The word is not "newsmaker."

O'REILLY: Right.

WALTERS: The word is not "most important." The word is fascinating. Who are the people who, for one reason or another, fascinate us? One of the things that almost everybody on this list, we didn't know who they were two years ago. I mean, they're all brand news. They're all cutting edge. No movie stars.

O'REILLY: Right.

WALTERS: No one plugging his or her movie. It's a very different list. Some of them, most of them I'd never met. Some of them...

O'REILLY: All right, but it's purely subjective, you and your crew.

WALTERS: You mean do I take a Gallup poll?

O'REILLY: No, you don't do that. You pick them. All right. Now, let's take this lady, Kate Gosselin.

WALTERS: Yes.

O'REILLY: Now, I've never watched this dopey show. I mean, I just don't have time to watch dumb stuff like this. But you find her fascinating. Why?

WALTERS: What I like about you is you never give your opinions.

O'REILLY: Yes. I mean, I'm a purely objective guy.

WALTERS: This is what — you know, but you know who she is?

O'REILLY: I do know who she is.

WALTERS: And first of all, the fact that you've got eight children makes you a little interesting. This is a very smart woman. She's going to have a big career.

O'REILLY: Doing what? What is she going to do?

WALTERS: She's going to do a talk show. She's very good on the talk show.

O'REILLY: So you think she's going to be a media star.

WALTERS: I think she's going to be a media star. I think she already is. I think Jon, forget Jon.

O'REILLY: Forget him. That's the husband, the ex-husband. We don't like him.

WALTERS: Soon-to-be ex-husband.

O'REILLY: All right. But this one you like, and you think she's got talent.

WALTERS: Yes. And I think people — I mean, the ratings, you may not watch what you call "this dopey show"...

O'REILLY: Yes, I'm not...

WALTERS: ...but the ratings were huge.

O'REILLY: OK, all right. So she's fascinating because you feel that she's going to be a media titan.

WALTERS: No. I think she's fascinating because of what she's gone through, because she's raising eight kids, because there's lots of reasons. Because her hair looks good.

O'REILLY: OK. Now the next one, Lady Gaga. I make fun of Lady Gaga, because...

WALTERS: Why do you make fun of her? She's a big talent.

O'REILLY: She's a big talent?

WALTERS: Big talent.

O'REILLY: OK. Now, tell me the truth, Barbara. Are you getting down to Lady Gaga every night? You got the iPods on, listening to her? Come on, come on.

WALTERS: She has a new album...

O'REILLY: Yes.

WALTERS: ...which is terrific. This one...

O'REILLY: Did you listen to the album?

WALTERS: Yes, I did listen to it.

O'REILLY: Can you sing us one of the songs?

WALTERS: No, I do not sing.

O'REILLY: OK, all right. So she...

WALTERS: But let me say something.

O'REILLY: OK, go ahead.

WALTERS: Since you asked the question, let me answer.

O'REILLY: Go ahead.

WALTERS: Her album is huge.

O'REILLY: Yes.

WALTERS: This is a woman who is fantastic looking.

O'REILLY: Yes.

WALTERS: She is very smart.

O'REILLY: Yes.

WALTERS: She is becoming a very big star, and she has created herself.

O'REILLY: She's created herself.

WALTERS: Yes, she has.

O'REILLY: I'm not going to argue with that. I mean, anybody can market herself this way.

WALTERS: You do not listen to her music. You do not talk to your children about what they listen to.

O'REILLY: No, no, but I've heard her songs. But I think that she and Kate Gosselin are the same person. They just change the wig.

WALTERS: Not at all. Totally...

O'REILLY: I've got to give Lady Gaga credit.

WALTERS: You are so old-fashioned.

O'REILLY: I know. You have no idea. My most fascinating person, George Gobel, all right. How about that? Those of you who know who Gobel is, there you go. How old are you? All right. Now, all right, I'll cede you Gaga's marketing is extraordinary.

Now, the third one is this gay guy, Adam Lambert.

WALTERS: That's how you're describing him, is "this gay guy"?

O'REILLY: Well, the reason I am is because that's what he trades on. He trades on this.

(CROSSTALK)

O'REILLY: Don't give me homophobic. He goes on ABC, and he does all kinds of...

WALTERS: Not because he's gay.

O'REILLY: Oh, wait a minute. Hold it. He didn't do that stuff because he's gay? Is that what you're telling me?

WALTERS: He did that because he got the urge.

O'REILLY: Oh, the urge.

WALTERS: He performs.

O'REILLY: I'm not gay. Would I ever get an urge like that? I doubt it. I doubt it. Would you? I don't think so.

WALTERS: He was expressing himself.

O'REILLY: In a way that was gay.

WALTERS: He also has some talent and he's also...

O'REILLY: As — to quote "Seinfeld," "not that there's anything wrong with that."

WALTERS: OK. He — by the way...

O'REILLY: Yes.

WALTERS: ...this is the first time that I have done interviews were I have asked two people out of the 10 what their sexuality is.

O'REILLY: And you didn't know about this? You had to waste time asking?

WALTERS: I wanted him to talk about it.

O'REILLY: OK.

WALTERS: Why he had kept it hidden.

O'REILLY: Whether he kept it hidden?

WALTERS: Yes, because on "American Idol"...

O'REILLY: Are you kidding me?

WALTERS: Did you ever watch "American Idol"?

O'REILLY: Yes. No, I know who the guy is. But there was never one second when I didn't know.

WALTERS: What is it with you?

O'REILLY: All right, let's get on to the serious stuff. Glenn Beck. Now, doesn't this just run down your whole show, picking him as one of the most fascinating?

WALTERS: You are so jealous.

O'REILLY: You know, you're absolutely right. I am so envious.

WALTERS: He is a new phenomenon.

O'REILLY: All right. Let's have a sound...

WALTERS: You've been there for a while.

O'REILLY: You interviewed Glenn Beck.

WALTERS: And he was a pussycat.

O'REILLY: Roll the tape.

(BEGIN VIDEO CLIP)

WALTERS: You often get very emotional.

GLENN BECK, FOX NEWS ANCHOR: Are you going to ask the tree question?

WALTERS: No.

BECK: Because I've got an answer. Weeping willow. Weeping willow.

WALTERS: I'm not going to ask you what kind of a tree you want to be. You want me to? OK, go ahead. What kind of a tree are you?

BECK: Now, see, now it's — now it's kind of anti-climactic.

WALTERS: That's right.

BECK: Everybody knows everybody cries with Barbara Walters. And I think — I bet I make people cry, too.

WALTERS: You make a lot of people cry these days.

(END VIDEO CLIP)

O'REILLY: All right. So there he is. And Beck is fascinating why?

WALTERS: Well, by the way, by the end of our interview, he had tears. I didn't do it deliberately.

O'REILLY: No.

WALTERS: Look, why isn't he fascinating? Two years ago, we didn't know who this guy was. Mother — had a terrible childhood. Mother committed suicide. He's a drunk. He's on drugs. Pulls himself together and is now, in spite of your jealousy, one of the biggest voices on television, in a time period not as good as yours, Bill. So yes, he's fascinating. And when I met him in person, he was really very sweet, the way you are off camera. I don't want to hurt your reputation.

O'REILLY: The difference between me and Beck is I'm not fascinating and he is. But I thought that was a good choice. It was a gutsy choice.

WALTERS: Oh, at last.

O'REILLY: Great. Your liberal friends aren't going to talk to you. Glenn Beck.

WALTERS: Don't you think it's interesting out of this list that there are no Democrats here?

O'REILLY: Well...

WALTERS: Where do you think we might find a Democrat?

O'REILLY: Who's fascinating? I think you're going to have to go to Zimbabwe.

WALTERS: Who's the most fascinating person? Have you thought who that might be?

O'REILLY: Lady Gaga.

WALTERS: No. No, no, no!

O'REILLY: You're going to...

WALTERS: You have to watch our show.

O'REILLY: That's right. You announce it. But that's my hope. But I think Beck is up there with Lady Gaga. It's a really tight poll.

Barbara Walters. Watch her special tonight.

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