News Corp. Market Value Down More Than $8 Billion Amid Phone Hacking Scandal
The Murdoch family's stake in the company has declined by nearly $1 billion over the last two weeks, and a credit ratings firm is considering a downgrade of its company debt rating.
NEW YORK -- Rupert Murdoch's News Corp. has lost more than $8 billion in market value since new revelations in a phone hacking scandal were first reported two weeks ago.
The conglomerate's Class A stock closed at $18.06 before the July 4 holiday in the U.S. -- near a 52-week high of $18.35 set at the start of June. On Monday, the stock dropped another 4.3 percent to finish Monday's trading session at $14.97 after going as low as $14.76. That means the stock has lost more than 17 percent and dropped below the half-way mark between its 52-week high and 52-week low of $11.91, which it reached last August.
At Monday's closing price, News Corp.'s market value stood at $39.65 billion, according to Bloomberg data. The market value is down by around $8 billion over the past two weeks. A Bloomberg News report on Monday calculated that the value of the Murdoch family's stake in the company has dropped by almost $1 billion to about $4.96 billion over the past two weeks.
Meanwhile, credit ratings agency Standard & Poor's on Monday said it is considering a potential downgrade of its debt rating on News Corp., citing "the increased business and reputation risks" of the legal issues surrounding the phone hacking scandal. A debt rating downgrade would increase the company's borrowing cost.