Rupert Murdoch has made News Corporation into a viral pathogen that threatens the organs of democracy wherever it spreads, regardless of where it gains a foothold.
News of more big problems for News Corporation, coming this time from their potential lenders.
Standard & Poor's warns of possible News Corp. downgrade
The move would be costly for a company that has already seen $8 billion in market value evaporate during the two weeks since the scandal first blew up.
News Corp. shares tumbled further Monday, closing at $14.97 a share. That is a 17% decline since July 5 when the scandal began to mushroom.
Losing its BBB+ credit rating would result in higher borrowing costs for News Corp.
Also the Guardian reports that News Corporation may be facing a full blown investigation under the Foreign Corrupt Practices Act. This could mean a wide ranging investigation into News Corporation's multinational media empire that the Guardian describes as "Global".
News Corp faces global investigation into bribery
News Corporation faces a global investigation of all its businesses to ascertain whether they engaged in the same acts of bribery revealed to have taken place in the UK between News of the World reporters and police.
Today investors continued fleeing News Corp's stock. After its precipitous drop last week News Corp's stock dropped another 4.8% today. This following News Corp. burning through $5 Billion to try to prop up the stock price last Tuesday.
See: W stock in toilet News Corp. pours $5 Bill to prop up share price, it fails
Some observers are suggesting that
Rupert Murdoch may have to step
down in order to save News Corp.
The costs to News Corp. of Rupert
Murdoch staying on will just continue
to climb.Rupert Murdoch