as flawless, but unfortunately it failed. abc's karen travers reports. >> reporter: the pentagon defended its failed mission to rescue james foley and other american hostages in syria. >> the mission was executed flawlessly after a significant period of preparation and planning and rehearsal. and the -- it turned out that the hostages were no longer at that location. >> intelligence doesn't come wrapped in a package with a bow. >> reporter: defense secretary chuck hagel said the u.s. expects isis to regroup and stage a new offensive. attorney general eric holder said there's an open criminal investigation into foley's murder. >> people will be held accountable one way or the other. >> reporter: isis demanded a ransom of $130 million in exchange for foley's release. >> we do not make concessions to terrorists, that includes we do not pay ransom. >> reporter: the ceo of globalpost, the news organization foley was working