Media Stocks Up, News Corp. Rises After Murdochs Testify
After getting battered for weeks over the News of the World newspaper scandal, News Corp. stock grew 5.5% to $15.79 per share on Tuesday.
Other big movers: Comcast took on 2.2% to get to $24.47. CBS also posted stong results, climbing 2.2% to $27.96; Walt Disney was 2% higher to $39.54; Viacom also went 2% north to $56.49; and Time Warner grew 1.9% to $35.45.
Other notable gainers: Lions Gate Entertainment improved 2.2% to $6.96; Dreamworks Animation SKG was 1.7% higher to $20.33; and Sony Corp. gained a little -- 0.2% to $26.65.
Rumors have surfaced that News Corp. might be considering a change -- or a shift at the top -- with Rupert Murdoch, chairman/CEO of News Corp., giving up part, or all of his responsibilities to COO Chase Carey.
But at a hearing in front of members of parliament, Murdoch denied that he was leaving.
"I feel that people I trusted -- I'm not saying who, I don't know at what level -- have let me down," Murdoch said at the hearing. "And I think they behaved disgracefully, betrayed the company and me, and it's for them to pay. I think that frankly, I'm the best person to clean this up."
Investors responded favorably. News Corp. stock price gains today amounted to about $2.2 billion. Still, the company's stock price is down about 13% since the scandal broke, a loss of about $6.1 billion in market value.