News Corp Posts $1.6B Loss

UK scandal hits Murdoch firm's bottom line
By Rob Quinn,  Newser Staff
Posted Aug 9, 2012 1:24 AM CDT
Updated Aug 9, 2012 1:52 AM CDT
Despite the loss, News Corp "is in a strong operational, strategic and financial position," Murdoch said in a statement.   (AP Photo/Kirsty Wigglesworth)

(Newser) – Divorce doesn't come cheap: Rupert Murdoch's News Corp has posted a hefty quarterly loss of $1.6 billion, mainly because of its plans to split its profitable entertainment businesses from its ailing publishing arm. The company cut $2.8 billion from the value of its publishing businesses, with Australian newspapers responsible for the lion's share of the write-down, reports the Independent. But scandal has also hit the firm's balance sheet. The company says legal costs related to the British phone-hacking scandal have now topped $200 million, and loss of income from the axed News of the World is still affecting its financial results.

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