(MENAFN) News Corp. announced that in the fiscal year through June, the news and publishing unit the company plans to spin off in 2013 recorded a net loss of USD2 billion, reported Gulf News.
The company, owned by Rupert Murdoch, attributed the loss to one-time charges and restructuring costs in its newspaper segment.
In the last fiscal year, revenue of the unit, to be named News Corp., reached USD8.7 billion, representing a quarter of the firm's total.
On the other hand, charges reached USD2.8 billion, including USD156 million in restructuring costs, most of which came from closing The News of the World, the tabloid at the center of a hacking scandal in the UK.
Most of the charges incurred because of declines in the value of newspapers and a fall in advertising at its in-store flyer business.
The company said that CEO Murdoch will be executive chairman of the new company and stay CEO of Fox Group, whereas the managing editor of The Wall Street Journal, Robert Thomson, will be the CEO of News Corp. with a salary and target bonus totaling nearly USD4 million a year.
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