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News Corp. Stocks Impacted By Phone Hacking Scandal

Reported by Ellen - July 18, 2011 -

Not surprisingly, News Corporation's phone hacking scandal is having a significant effect on its stock price. In addition to the criminal and political investigations, shareholders are becoming restive and there is pressure to make corporate changes such as having Rupert Murdoch's son, James Murdoch, step aside as deputy chief operating officer at News Corporation.

The BBC reports:

News Corp's stock has now lost almost a fifth of its value since the start of July, with the share price of its common stock in New York falling from $18.50 to $16.09.

Analysts say the events of the past few days have caused major damage to the company, as 19% of its total value has evaporated.

..."You're now looking at [about] $10bn wiped off the value since the peak," said Stephen Mayne, director of the Australian Shareholders' Association.

Mr Mayne also said that independent directors at the firm have been discussing a change in leadership.

H/T David in Elyria

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