Thursday, 3 November 2011

Closing the NoW cost News Corps nearly £100m

The closure of the News of the World has cost Rupert Murdoch's News Corporation close to £100m, the Independent reports today.

It says: "In quarterly results reported to Wall Street, News Corp recorded a one-off restructuring charge of $91m (£57m) and said its publishing division, which includes all Mr Murdoch's papers, suffered a $68m (£43m) fall in profits."

The results were the first to cover the period after Murdoch shut the NoW in July in an attempt to draw a line under the phone-hacking scandal.

The restructuring charge was primarily the result of redundancy costs, while the profits plunge at the publishing division "reflects the impact from the closure of the News of the World in the UK, as well as lower advertising revenues at the Australian newspapers and integrated marketing services business", News Corp said.

  • Rupert Murdoch was advised by his daughter Elisabeth that James Murdoch should stand down earlier this year because of the mishandling of the phone hacking scandal, the magazine Vanity Fair claims.

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