And Nothing of Value was Lost...
- Thread starter DarkAudit
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What money? $6.4 billion 2Q loss and an $8.4 billion write-down.Gotta go where the money is.
GasBandit
Staff member
What money? $6.4 billion 2Q loss and an $8.4 billion write-down.[/QUOTE]Gotta go where the money is.
Much of which had to do with them overpaying when they bought the Wall Street Journal, according to that article.... oh and this little recession that is hurting everybody's profits.
Also according to that article, they were disappointed they only brought in 7.9 billion when analysts were expecting 8.4 billion. Oh how sorely they must be vexed.
Also from the article -
One bright spot was cable networks, including Fox News. The division reported income of $428 million, up $91 million from the period a year earlier. Fox News increased its operating income by 32 percent.
Where the money is.
The article's wording is a little inaccurate. Most of that $3 billion write-down is goodwill write-down, which just means that NewsCorp decided that the non-cash valuation of intangible assets related to their newspaper division, including WSJ, could no longe be valued above market due to stockholders' confidence in the brand and the acquisition.
NewsCorps basically said, "given the economy's affect on declining advertising sales, we're re-valuing our intangible assets to more accurately reflect their value".
So, while the re-valuation was severe, it doesn't actually represent "loss" in the traditional sense, so they're actually doing better than article says they are, and the 10-Q they've filed since then for 3Q backs that up.
On further review, I need to rethink my opinion of Mr. Stossel. He's basically telling Lou Dobbs where he can stick those anti-immigrant rants of his.
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