News Corp. to take $1.2B-$1.4B charge in Q4 related to publishing segment On May 24, News Corporation disclosed in a regulatory filing that it concluded that certain of its goodwill and intangible assets were potentially impaired and that it expects to record a pre-tax non-cash impairment charge in the range of $1.2B-$1.4B in Q4 related to its publishing segment. The company tests goodwill for impairment on an annual basis in Q4 and at other times if a significant event or change in circumstances indicates that it is more likely than not that the fair value of these assets has been reduced. During Q4, the Company adjusted its future outlook and related strategy principally with respect to the Australian publishing business and secondarily with respect to the U.S. publishing businesses which resulted in a reduction in expected future cash flows. As a result, the company determined that the fair value of these reporting units declined below their respective carrying values and expects to record an impairment charge in the quarter. Additionally, goodwill and intangible assets in the publishing segment continue to be at risk for future impairment.
News Corp. upgraded at Macquarie As previously reported, Macquarie upgraded News Corp to Neutral from Underperform. The firm upgraded shares based on valuation and expectations for operational trends to improve in 2015. Price target is $16.70.