Scandal hit News Corp posts big loss
US: Rupert Murdoch’s embattled media giant News Corp posted a net
loss of $1.51 billion in its fiscal fourth quarter Wednesday, as the
firm prepared for a major restructuring.
The company’s bottom line was hit by a $2.85 billion charge
apparently related to a plan to split its entertainment division from
its struggling publishing business, hit by tabloid phone hacking
scandals in Britain.
News Corp described the charge as “a write-down of $1.5 billion of
goodwill and a $1.3 billion write-down of the company’s indefinite-lived
intangibles, principally related to the company’s publishing businesses,
most significantly the Australian operations.”
News Corp also wrote off $57 million it said it spent during the
quarter on an “ongoing investigation” into the British phone hacking
scandal, bringing the total cost for the year to approximately $224