Investors in Murdoch's News Corp forgive hacking
(Reuters) - After six months of scandal and crisis management in the wake of the phone-hacking affair at its UK tabloid papers, shares of News Corp have touched new heights as investors say the so-called 'Murdoch discount' has shrunk but cautioned that it won't completely go away.
In the year's first week of trading, News Corp shares rose to a 52-week record, surpassing the highs it hit just before the July 4 story broke of its News of the World tabloid hacking a murdered schoolgirl's voice mail. That story seemingly turned the world against founder Rupert Murdoch and his family. The media conglomerate lost nearly a quarter of its market capitalization, some $11 billion (7 billion pounds), in just four weeks.
The fact that all of News Corp's papers account for less than 3 percent of its operating profits did little to allay investors fears at the time.
That attitude has changed now said analysts as News Corp shares are up nearly 30 percent since the lows of last summer.
http://uk.reuters.com/article/2012/01/08/uk-newscorp-idUKTRE8070QU20120108
