Write-Off for News Corp.
News Corp. acknowledged Wednesday that it will take a noncash charge of about $2billion against third-quarter earnings on its investment in Gemstar-TV Guide International.
Gemstar last week took a $5 billion write-off because of new accounting rules governing goodwill, which is the difference between the price paid for an asset and the current value. News Corp. officials said the $2-billion write-off corresponds with the company’s 42.6% ownership stake in Gemstar, which publishes print and electronic television guides.
Since News Corp. merged its TV Guide unit with the Pasadena-based electronic guide publisher, Gemstar’s stock has been pummeled, closing at $14.55 Wednesday on Nasdaq, down from a peak of $101 a share in March 2000.