News Corp. (NWS) Shares Continue Free-Fall as Hacking Scandal Escalates
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Problems continued to mount over the weekend for Rupert Murdoch's News Corp. (NYSE: NWS) (NYSE: NWSA) with more executive departures and the arrest of a key executive amid the phone hacking scandal.
On Sunday, former News Corp. executive Rebekah Brooks was arrested for her role in the scandal. Brooks was the former CEO of News International and former editor of the now-shuttered News of the World. She was questioned for 12 hours before being released on bail.
Brooks was the tenth arrest after officials re-opened its investigation into the company.
The scandal also has far-reaching political implications. Metropolitan Police Commission Paul Stephens resigned due to allegations of ties to News Corp.'s now-shutdown News of the World.
British Prime Minister David Cameron, who has ties to Ms. Brooks, called a emergency meeting of Parliament to brief lawmakers on the spreading scandal, which may threaten him politically.
In the U.K, the Serious Fraud Office is considering a request from lawmakers to open an investigation into News Corp. In the U.S., the FBI has launched a probe into whether the families of 9/11 victims were hacked by News Corp. journalists.
Shares of News Corp have collapsed amid the controversy, last trading down 4 percent to below $15 per share. The stock is down more than 14 percent over the last two weeks of trading.
On Sunday, former News Corp. executive Rebekah Brooks was arrested for her role in the scandal. Brooks was the former CEO of News International and former editor of the now-shuttered News of the World. She was questioned for 12 hours before being released on bail.
Brooks was the tenth arrest after officials re-opened its investigation into the company.
The scandal also has far-reaching political implications. Metropolitan Police Commission Paul Stephens resigned due to allegations of ties to News Corp.'s now-shutdown News of the World.
British Prime Minister David Cameron, who has ties to Ms. Brooks, called a emergency meeting of Parliament to brief lawmakers on the spreading scandal, which may threaten him politically.
In the U.K, the Serious Fraud Office is considering a request from lawmakers to open an investigation into News Corp. In the U.S., the FBI has launched a probe into whether the families of 9/11 victims were hacked by News Corp. journalists.
Shares of News Corp have collapsed amid the controversy, last trading down 4 percent to below $15 per share. The stock is down more than 14 percent over the last two weeks of trading.
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