John

NewsCorp Shares Drop, Cites MySpace and Dow Jones For Slowing Down

In News on April 15, 2008 at 8:08 am

Media companies don’t get any bigger than Rupert Murdoch’s NewsCorp., who for me, have been an exemplary media conglomerate that embraces (sort of) the new wave of media before other slow-moving juggernauts. Even so, however, their share price took a dip today as analysts doubt that MySpace will meet their targets (no surprise there), and the newly acquired Dow Jones would require additional investment.

From The LA Times:

Shares of media company News Corp., controlled by Rupert Murdoch, fell the most in five years after Sanford C. Bernstein & Co. and UBS analysts cut their outlook for the stock, citing concerns that growth will slow.

Profit growth is likely to slow because the MySpace social-networking website will fail to meet targets, Nathanson wrote. Dow Jones & Co., acquired in December, will require additional investment and might be slow to turn around because of weak newspaper advertising, he wrote.

“We are wary of News Corp.’s relative positioning in this intensely competitive business that features established players including Google and Yahoo,” Morris said.

Class A shares of the New York company fell 86 cents to $18.14.

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