News Corporation loses $1,6bln in second quarter

News Corporation, owned by Rupert Murdoch, reported a net loss of $1.6 billion as the company faces ongoing legal charges over the phone-hacking scandal.

Publishing profits of the media giant fell to $139 million dollars from $270 million dollars.Last year the company earned a net income of $683 million in the same period. 

News Corporation said it lost $224 million due to the "costs of the ongoing investigations initiated upon the closure of The News of the World". 

The company has decided to separate its entertainment business from publishing assets, a move that has cost it $2.9 billion.