Scandal-hit News Corp posts big $1.88b loss
NEW YORK (AFP) - Rupert Murdoch's embattled media giant News Corp posted a net loss of US$1.51 billion (S$1.88 billion) in its fiscal fourth quarter on Wednesday, as the firm prepared for a major restructuring.
The company's bottom line was hit by a US$2.85 billion charge apparently related to a plan to split its entertainment division from its struggling publishing business, hit by tabloid phone hacking scandals in Britain.
News Corp described the charge as "a write-down of US$1.5 billion of goodwill and a US$1.3 billion write-down of the company's indefinite-lived intangibles, principally related to the company's publishing businesses, most significantly the Australian operations."
News Corp also wrote off US$57 million it said it spent during the quarter on an "ongoing investigation" into the British phone hacking scandal, bringing the total cost for the year to approximately US$224 million.