News Corp investors who were cheered last week by news that telecommunications mogul John Malone had increased his stake in the company and might be positioning himself to succeed Rupert Murdoch reacted with sell orders Thursday to word that Murdoch's son, Lachlan, had been promoted to deputy COO.

Dow Jones News reported from Melbourne this morning that News Corp shares slumped 5.3 percent on the Australian market, its biggest one-day decline since last April.

Investors were also disappointed by a report from Merrill Lynch entertainment analyst Jessica Reif Cohen, who downgraded News Corp's first quarter and 2001 earnings projections.

Source: Studio Briefing