News Corp is one of Australia's best-known companies and most widely held shares The slide comes as an investigation into phone hacking in the UK widens.
Meanwhile, the US Department of Justice has spoken to the Serious Fraud Office about how to investigate allegations the News of the World paid police for information, the BBC has learnt.
It is illegal for any US company to pay bribes to overseas officials, under the Foreign Corrupt Practices Act.
News Corporation's headquarters are in New York, but its shares are listed in both the US and Australia.
BBC business editor Robert Peston said the Department of Justice had not yet launched a formal investigation, but its conversations with the Serious Fraud Office showed that it was actively considering whether it needed to launch such an investigation.
News Corporation's stock has now lost almost a fifth of its value since the start of July, with the share price of its common stock in New York falling from $18.50 to $16.09.
Analysts say the events of the past few days have caused major damage to the company, as 19% of its total value has evaporated.
"You're now looking at [about] $10bn wiped off the value since the peak," said Stephen Mayne, director of the Australian Shareholders' Association.
Widening probe
News Corporation is the parent company of News International, which runs the Sun, the Times and Sunday Times. Their sister paper, the News of the World, was shut down earlier this month as a result of the phone hacking scandal.
On Sunday, ex-News International chief executive Rebekah Brooks was arrested by police in the UK on suspicion of conspiring to intercept communications and on suspicion of corruption. Mrs Brooks has denied wrongdoing, and was released on bail at midnight (2300 GMT).
Her spokesman said she was still happy to appear before the UK Parliament's Culture, Media and Sport Committee on Tuesday.
Rupert Murdoch, and his son James, the boss of News Corporation in Europe and Asia, are also to appear before the MPs.
In another twist, Metropolitan Police Commissioner Sir Paul Stephenson stepped down for his part in the phone hacking scandal.
Sir Paul, Britain's most senior police officer, was criticised for hiring former News of the World executive Neil Wallis - who was questioned by police as part of the probe into hacking - as an adviser.
Leadership change?
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Arjuna Mahendran of HSBC Private Bank in Singapore believes that News Corporation will survive the ongoing phone hacking scandal
Mr Mayne says independent directors at the firm have been discussing a change in leadership.
"The shareholder pressure, particularly today's tumultuous fall on Australian markets after the amazing developments over the weekend, is clearly showing that this is a gathering storm," he said.
Although some reports suggest this may not be the case.
Tom Perkins, who is on the board of News Corp, denied that any such discussions were taking place in an emailed response to Reuters news agency.
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