Media

News Corp. Takes $2.8 Billion Charge

Published on August 8, 2012
by Peter Kafka

Justin Sullivan/Getty Images

News Corp. missed its quarterly numbers today by reporting adjusted earnings of 32 cents a share on revenue of $8.4 billion; the Street was expecting 32 cents and $8.7 billion.

More interesting is the $2.8 billion “non-cash impairment charge” the company disclosed but didn’t explain in any detail. Here’s the full text from the release: “The charge consisted of a write-down of $1.5 billion of goodwill and a $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.”

The company also took another $57 million charge “related to the costs of the ongoing investigations” around its phone hacking scandal; it said it has paid out $224 million for related costs in the last year. News Corp. also owns this Web site.

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