[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

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



http://www.bloomberg.com/news/2011-07-12/news-corp-s-lost-7-billion-shows-investor-concern-over-hacking-fallout.html

By Brett Pulley and Devin Banerjee
Bloomberg
July 11, 2011

News Corp. (NWSA)âs 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 company.

Rupert Murdochâs 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 companyâs closing price, cutting its market value by 15 percent to $41.2 billion.

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 scandalâs 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.

âThereâs a lot of noise out there,â said Bank, who rates the stock âoutperformâ and doesnât own any. âThese headlines cause massive swings in sentiment and stock price, leaving a cloud of uncertainty about how deep the allegations go.â

[...]

___________________________________________________________
Tegatai Managed Colocation: Four Provider Blended
Tier-1 Bandwidth, Fortinet Universal Threat Management,
Natural Disaster Avoidance, Always-On Power Delivery
Network, Cisco Switches, SAS 70 Type II Datacenter.
Find peace of mind, Defend your Critical Infrastructure.
http://www.tegataiphoenix.com/