Shares in Rupert Murdoch’s News Corporation
(ASX:NWS) fell yesterday as investors left the company still battling to clear its name amid a phone hacking scandal in the UK.
One day after the company’s British tabloid News of the World printed its last edition, shares in News Corp sunk 5.07 per cent yesterday, closing at $15.92.
However, the allegations that pushed Mr Murdoch to can the paper have not died and are threatening still to destabilise his media empire.
The company now faces the threat of legal action by British and US regulators, casting even more doubt over its $14 billion bid for pay-TV operator BskyB.
In the first half of its 2011 financial year, News Corp posted a net profit of just under $1.5 billion.
