By Kevin McCauley
Rupert Murdoch's News Corp. took an $87M second-quarter charge related to the ongoing investigation into the hacking scandal at the now shuttered News of the World tabloid.
The paper was closed in July following the disclosure that it hacked the phone of 13-year-old murder victim Milly Dowler.
The loss of revenues from the tab contributed to a 43 percent decline in operating profit at $2.1B publishing group that includes Times of London, Sun, New York Post, Wall Street Journal and Australian papers.
News Corp. settled 15 hacking cases on Feb. 8, ironing out agreements with Alastair Campbell, spokesperson for former U.K. prime minister Tony Blair; Simon Hughes, Member of Parliament; Steve Cooper, comedian, and Paul Gascoigne, ex-soccer player.
BBC legal correspondent Clive Coleman believes the settlements represent a "continued waving of the white flag" by News Corp.?s News International unit.
The bulk of the 60 cases have been settled, "and the more they settle, the more difficult it becomes for News International to defend one," according to Coleman.
News Corp. reported a 16 percent rise in Q2 operating profit to $1.5B, sparked by performances at its film and Fox TV units. Revenue rose two percent to $9B. |