• Bloomberg News, Thursday, November 6, 2008 10:45 AM

News Corp. fell 22% in Wednesday trading after the media empire cut its 2009 forecast primarily due to shrinking ad sales at its broadcasting and publishing properties. The traditional media giant finished the day down $3.02 to $12.88, posting its biggest one-day drop since December 1990.

News Corp.'s third quarter earnings certainly weren't boosted much by revenue growth from Fox Interactive Media, the online division which includes the social network MySpace. The division saw a revenue increase of 17%. In call with reporters, News Corp. executives conceded that MySpace display advertising was "softening."

''We are doing slightly better than the marketplace, but it's clear from everybody else that there's a lot of softening in the display advertising marketplace, and we are clearly beginning to feel some of that,'' Chairman Rupert Murdoch said.

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