The British hacking scandal may be unfortunate, but the closing of the News of the World and the outcome of dealings with broadcaster BSkyB will have a minimal impact on News Corp's revenue stream, a major shareholder said on Monday.

News Corp may really tank businesswise, but I wouldn't put a high probability on it, said Donald Yacktman, chief investment officer of Yacktman Asset Management Co of Austin, Texas, the ninth-largest shareholder in News Corp.

The market has a central tendency to overact, Yacktman said. It does slightly reduce the predictability of the cash flows, but the impact on the cash flows is minimal at best.

Yacktman, who was nominated for fund manager of the decade by Morningstar in 2010, said News Corp's shares are still undervalued. Yacktman began buying the company's stock in the mid-single digit range in early 2009.

News Corp shares were down about 7.5 percent at $15.50 in late afternoon U.S. trading on Monday, and are off about 14 percent over the past four days.

StarMine, a Thomson Reuters investment research firm, puts an intrinsic value of $22.16 a share on News Corp's stock, on the assumption it will post a cumulative annual growth rate of 9 percent on its earnings over the next 10 years.

(Reporting by Herbert Lash. Editing by Robert MacMillan)