News Corp. (NWS) took a $8.4 billion writedown yesterday. According to a SEC filing, $2.8 billion of that is assigned to Dow Jones, which cost News Corp. $5.7 billion to acquire in 2007.
During yesterday’s call, News Corp. CEO Rupert Murdoch said the WSJ’s ad revenues are down around 20% so far this year. He said that WSJ.com’s 2008 advertising revenues were $120 million.
The writedown isn’t a huge surprise. At $60 per share, News Corp. paid a 65% premium over Dow Jones’ market value. And besides, didn’t Rupe pursue the deal just so he could rag on the New York Times?