News Corp. Market Value Down More Than $8 Billion Amid Phone Hacking Scandal

5:02 PM PST 07/18/2011 by Georg Szalai
Charles Eshelman/FilmMagic/Getty Images

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.


Email: Georg.Szalai@thr.com

Twitter: @georgszalai

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