News Corp. has lost $7 billion in market value over four trading days, demonstrating widespread investor concerns over the company’s U.K. phone hacking scandal, reports Bloomberg.
The four straight days of declines have cut News Corp.’s market value by 15%, leaving it with a valuation of $41.2 billion, the piece notes.
The plunge in value is much greater than any lost profits from the News of the World, the British tabloid that was closed amid revelations about phone hacking, or from the delay in purchasing the satellite-TV provider British Sky Broadcasting Group Plc, the article points out, citing RBC Capital Markets analyst David Bank.
“These headlines cause massive swings in sentiment and stock price, leaving a cloud of uncertainty about how deep the allegations go," Bank noted.
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