News Corp (NASDAQ:NWS) has seen its shares tumble by as much as 14% this year and is now facing the prospect of a £10 billion loss.
This news comes as the Dow Jones Industrial Average has fallen by more than 100 points.
News Corp is one of the biggest losers in the Dow’s recent plunge, dropping 16% to 3,053.9 points in morning trade on Thursday.
But it has been able to pull back on losses to offset its losses in the broader market.
News Corp reported a profit of £17.4 billion ($23.3 billion) in the first quarter of the year, down from a profit a year ago of £22.4bn ($32.5 billion).
It also said it was in “negative” operating cash flow for the year ending March 31, down to £2.9 billion ($3.1 billion).
However, News Corp’s stock price has gained a lot in recent months.
In the week ending July 26, the company was trading at about $3.60 a share.
In its latest earnings report, it revealed a profit and profit-free growth of around 9% year-on-year.
It also reported a £1.8 billion loss for the three months ended July 31.
The company is now valued at about £1 trillion, according to CNBC’s estimates.
Shares in News Corp have also been dropping in recent weeks.
At the end of July, the stock was trading near $17.70, but it dropped to just under $16 by August 2.
That drop is due to concerns about the outlook for News Corp and its news operations.
Shares of News Corp also lost another 6.9% on Thursday, according a Reuters data tracking tracker.
News UK, which owns the News of the World and Daily Mirror newspapers, has also seen its stock price drop in recent days, falling as much in the second quarter as in the previous two quarters.
News UK has also reported an operating loss of £5.2 billion ($8.6 billion) for the second half of 2017, down by £8.1 million ($14.2 million).
On Thursday, News UK announced that it would shut down its newspapers next week as part of a plan to reduce staff and its costs.
The newspaper is also in a dispute with News International over a £100 million pay out.
In January, the news outlet accused News International of breaching contract, and said that News UK would receive the cash in the form of a bonus.
Shares fell 0.5% on Friday, following a 1.3% fall on Thursday and an 8.5%-drop on Wednesday.