News Corp. suffers a downgrade


The alleged cloudy vision of the media giant’s iconic founder is cited as a reason to sell rather than buy News Corp. stock, along with the standard current economic reasons not to trust the stock. The negative assessment comes from Pali Research analyst Rich Greenfield, who said, “While we have long viewed Rupert Murdoch as the most visionary CEO in the media sector and one of the only CEOs willing to make long-term strategic investments (regardless of the near-term earnings impact or public investor views), we are increasing surprised/frustrated with his lack of strategic direction related to News Corp’s television station, newspaper and book publishing assets,” according to Greenfield is also worried that CO Peter Chernin might get away. Beyond keeping him, he would like to see stock bought back, ailing newspapers shuttered and TV cut, among other things, and since these things likely won’t happen, he’s moving to the sell recommendation.