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NEW YORK (
News Corp.(NWS - Get Report) ticked lower in late trades Thursday amid reports that the Federal Bureau of Investigation has opened a probe into phone hacking at the company.
According to the
Associated Press and
The Wall Street Journal, the FBI is looking into allegations that News Corp. employees may have hacked into the phones of 9/11 victims.
The stock saw a drop late in Thursday's regular session when the reports first surfaced, dipping as low as $15.81, before closing down 2.3% at $15.99. The shares were slipped another penny in the extended session.
The reports come after News Corp. pulled the plug on U.K. newspaper
News of the World last week after nearly 170 years in an attempt to deal with a widening phone hacking scandal in that country.
Google(GOOG - Get Report) shares surged in Thursday's extended session after the Internet search giant's latest quarterly profit
trounced Wall Street's expectations.
In its first earnings report with Larry Page as CEO, the company
posted an adjusted profit of $2.85 billion, or $8.74 per share, for the three months ended June 30 on revenue of $6.92 billion.
The average estimate of analysts polled by
Thomson Reuters was for earnings of $7.85 a share on revenue of $6.55 billion in the June period.
The stock was last quoted at $593.10, up 12.1%, on volume of 2.7 million. Based on a regular session close at $528.94, the shares were down more than 10% year-to-date.
Operating expenses, excluding cost of revenue, were still up significantly year-over-year, rising to $2.97 billion in the latest quarter from $1.99 billion in the same period a year earlier. Traffic acquisition costs, the portion of revenue that Google shares with partners, rose to $2.11 billion in the June period from $1.73 billion last year.
Written by Michael Baron in New York.
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