Why News Corp.Took A Nearly $3 Billion Write-Down This Year

by and Sam Bailey

News Corp. reported a nearly $3 billion write-down in its annual earnings report [pdf] this week, mostly due to losses from its publishing businesses, the company said.

The report comes as the company is preparing to spin off its publishing arm into a separate public company from its more profitable film and television sector. The deal should be completed by the end of this year, the company said in its earnings call on Wednesday, according to The Wall Street Journal.  

News Corp. also reported a $224 million charge connected to the phone-hacking scandals in the U.K. (See the latest on the investigations in our cheat-sheet here.)

As we reported this spring in Murdoch's Scandal, Rupert Murdoch's beloved newspapers have become a smaller (and less-profitable) part of his empire over the past 10 years. We've updated our "How Does News Corp. Make Its Money?" graphic below with the new 2012 figures.

Divisions that are white are losing money during this period.
IncomeFY 2002
  • FY 2002
  • FY 2012
Source: News Corporation annual reports, 2002 - 2011, News Corporation Q4 2012 earnings report
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