Rupert Murdoch's News Corporation has reported a massive loss of $6.4 billion. Why the red ink? Because the company took $8.4 billion in write-downs on its intangible assets, mostly related to US television licences and newspapers. If you want, you can listen to them talking about it here.
Murdoch blames it on the downturn which, he says, is worse than previously thought.
"While we anticipated a weakening, the downturn is more severe and likely longer lasting than previously thought. As a result, we have been taking actions to preserve a solid level of operational profitability and a strong balance sheet without sacrificing future growth."
With Murdoch flagging job cuts, News Corporation staff would be very nervous.
But for the rest of the media, it's also a warning. The $8.4 billion in write-downs would alarm a lot of media groups, particularly as they are struggling. It's a grim warning for those outlets without News Corporation's depth and breadth.
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