CNBC: News Corp. Has Lost $18 Billion Due To ‘Reputational Damage’
The overseas scandal that brought down News Corp.’s News of the World tabloid is doing significant damage to the company’s bottom line back home in the U.S. CNBC reports Rupert Murdoch‘s media empire has lost $18 billion to “reputational damage” and as CNBC’s Kayla Tausche reports this morning, “the bleeding of course at News Corp. continues.” In a morning segment called “Empire Under Attack,” Tausche outlined that the the Murdoch-owned Times and Sun have seen their Sunday circulations drop–as competitors have gained. “Those readers are moving away from Murdoch’s papers–and toward its competitors who are winning eyeballs with these sexy and scandalous headlines about Murdoch.”
In Thursday morning’s papers, all led with Murdoch’s decision to surrender his bid to take complete control of British pay TV company BSkyB–except Murdoch’s Sun. Suggestions that Murdoch might try to “stop the contagion” by selling off his U.K. papers, Tausche reports, could be complicated should the scandal spread to Murdoch’s U.S. media properties.
The Squawk Box panel questioned whether American viewers would turn off Fox News over the scandal, but thought that any proof that any Murdoch papers hacked the phones of American terror victims could shift public opinion quickly. “If there’s a 9/11 victim’s thing, I think you could see people really revolt.”
Watch it here, from CNBC:
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