Shares in Murdoch Companies Fall
Shares in Rupert Murdoch’s News Corp took a nosedive Thursday as a result of the News of the World scandal, as the paper’s parent company lost some $400 million in value. After the initial nosedive, News Corp. recovered and finished the day at $17.94. Fears over that the deal with broadcaster BSkyB would not go through—Murdoch has been hoping to acquire a 61 percent stake in the company—caused the company to lose some £666 million (roughly $1 billion) in value over the last week. While the News Corp deal is still expected to go through, BSkyB has lost 6 percent of its value in a week. Regulator Ed Richards suggested a “fit and proper test” to make sure media groups are adhering to high standards. The U.S.-traded company already lost more than $1 billion in revenue Wednesday.