Monday, July 18, 2011

News Corp "train wreck" -- how bad is it?

As Rupert Murdoch is set to testify before British Parliament Tuesday over the phone-hacking scandal that has roiled politicians, cops and legions of Brits once titillated by his tabloid press, the billionaire's media empire is showing more signs of unraveling. Shares of Murdoch's News Corp. (NWS) slumped 4.3% Monday to $15.40, continuing a string of losses that have shaved more than $8 billion off the company's market value since July 8 and igniting speculation over how long Murdoch and family members will continue to hold grip over the firm, whose U.S. holdings include The Wall Street Journal, Fox TV and film studio 20th Century Fox. Late Monday, credit agency Standard & Poor's placed News Corp.'s credit rating on watch and said it may downgrade the company's credit.

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