Shares of Rupert Murdoch’s News Corp. (NYSE: NWS.A) are plunging as the phone-hacking scandal surrounding some of its British newspapers keeps escalating.
News Corp. shares are down 6.8 percent as of 2:05 p.m. (EDT) at $16.18 per share.
Since Tuesday, July 5, the stock’s value has declined about 13 percent.
Nonetheless, News Corp. stated Monday that it will continue its efforts to acquire British Sky Broadcasting, the UK satellite company, in defiance of massive government resistance to the bid.
There are concerns that the company will not regulatory approval for the deal.
Already, Murdoch has had to shut down the “News of the World” tabloid over allegations it hacked the phones of thousands of Briton’s including even a girl who was later murdered.
Executives at News International, a British subsidiary of News Corp., which owned NOTW, are under tremendous pressure to resign and may themselves face arrest and prosecution.
Even worse, there are now allegations that ex-UK Prime Minister Gordon Brown was also hacked by the Sunday Times, another Murdoch-owned paper. Brown said his bank statements, property records and personal medical files were illegally obtained by the paper.