[ISN] News Corp.'s Lost $7B Shows Investor Concern

From: InfoSec News <alerts_at_private>
Date: Tue, 12 Jul 2011 02:30:22 -0700 (MST)

By Brett Pulley and Devin Banerjee
July 11, 2011

News Corp. (NWSA)’s loss of $7 billion in market value over four trading 
days shows investor concerns that a probe into alleged phone hacking by 
journalists at one London newspaper could have a broader impact on the 

Rupert Murdoch’s New York-based media company tumbled $1.27, or 7.6 
percent, to $15.48 in Nasdaq Stock Market trading yesterday, the biggest 
drop since April 2009. It was the fourth straight decline in the 
company’s closing price, cutting its market value by 15 percent to $41.2 

The slide is far out of proportion with the lost profits from closing 
the News of the World tabloid or from delaying the acquisition of the 
satellite-TV provider British Sky Broadcasting Group Plc (BSY), said 
David Bank, an analyst at RBC Capital Markets in New York. Investors are 
concerned about the scandal’s effect on other News Corp. holdings, which 
include the Fox TV networks and film studios, the Wall Street Journal 
and three other newspapers in the U.K.

“There’s a lot of noise out there,” said Bank, who rates the stock 
“outperform” and doesn’t own any. “These headlines cause massive swings 
in sentiment and stock price, leaving a cloud of uncertainty about how 
deep the allegations go.”


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Received on Tue Jul 12 2011 - 02:30:22 PDT

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