The value of the family’s News Corp. holdings fell to about $4.96 billion today in U.S. trading, from almost $6 billion at the July 1 close, according to data compiled by Bloomberg, before reports that News of the World had hacked into the voicemail messages of murdered U.K. teen Milly Dowler.
The loss of $977 million represents a drop of 16 percent, highlighting the financial consequences for the Murdoch family. Rebekah Brooks, the former chief of Murdoch’s U.K. newspapers, resigned last week and was arrested by police yesterday. At stock’s lowest today, the decline was $1.03 billion.
The fallout has also touched high-level politicians and police officials in Britain. Metropolitan Police Commissioner Paul Stephenson resigned yesterday because of “accusations” about police links to News Corp. (NWS)’s U.K. unit and its hiring of a former journalist at the tabloid as a consultant. Prime Minister David Cameron cut short a trip to Africa to prepare for a statement to Parliament on July 20.
Police are probing allegations of widespread hacking of crime victims, dead soldiers, politicians, celebrities and royal-family members at the now-defunct News of the World. They are also investigating allegations of police bribery.
Brooks, Rupert Murdoch, who is chairman and chief executive officer of the New York-based company, and James Murdoch, who is deputy chief operating officer and chairman of News International were scheduled to appear before parliament to respond to questions.
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