10 August 2012
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Bloomberg
News Corp., billionaire Rupert Murdoch’s media company, reported a USD 1.55bn fourth-quarter loss after writing down the value of publishing
assets hurt by scandal and shrinking advertising revenue. The net loss was 64 cents a share, compared with net income of USD 683m, or 26 cents, a year earlier, the New York-based company said
today in a statement. The majority of News Corp.’s value comes from its entertainment
operations, which include the Fox News cable network and Twentieth
Century Fox film studio. In June, Murdoch announced a plan to split off
the declining publishing division, home to the Wall Street Journal in
the U.S. and the Sun newspaper in the U.K., into a separate public
company. Annual publishing profit fell 31 percent to USD 597m, partly because
of shrinking advertising revenue at the Australian newspapers as well as
the closure of the News of the World newspaper, the company said.
Coping with the scandal’s fallout has cost News Corp. about USD 315m
since it broke in July 2011, with USD 57m coming this past quarter.
That includes legal fees, settlements and losses from closing the News
of the World, where the hacking originated.
Original source