News Corp. shares hammered in wake of British phone hacking scandal
July 8, 2011 | 5:27 pm
Shares in Rupert Murdoch’s empire, News Corp., have been roughed up this week as the British phone hacking scandal continues to cast an ominous cloud over the global media company’s management.
By Friday, after four days of salacious news coverage, shares of News Corp. had fallen 6%, erasing $2.6 billion in market value. A week ago the shares were trading above $18. They closed Friday at $16.75 in New York.
The crisis has tarnished the reputation of Murdoch and his youngest son, James, who four months ago was elevated to the No. 3 management spot in News Corp. Now deputy chief operating officer, James Murdoch has been in charge of the company’s Asian and European operations, including its British newspapers, since 2007.