Rupert Murdoch Bids $5B For Dow Jones

Wall Street Journal Publisher Confirms Unsolicited $60 Per Share Offer From Murdoch's News Corp.

(CBS/AP)  Dow Jones & Co., publisher of The Wall Street Journal, said Tuesday it received an unsolicited bid from Rupert Murdoch's News Corp. to buy the company for $5 billion, but the family that controls the company said it would oppose the deal.

Dow Jones said its board had received the offer from News Corp. to buy the company at $60 a share, either in cash or a combination of cash and News Corp. stock. News of the offer, which was first reported on CNBC, sent Dow Jones' shares soaring, and also lifted those of other newspaper publishers.

However Dow Jones said later Tuesday that the Bancroft family, the company's controlling shareholders, intended to vote shares representing just over 50 percent of the voting power of Dow Jones against the deal.

That put the ball back in Murdoch's court, leaving open the possibility that he could raise his offer, or that other bidders for the company could possibly emerge.

"Dow Jones is so attractive to News Corp. for a couple of reasons: Because the Wall Street Journal is a subscription-based Web site, it would help News Corp. to beef up its online ad revenues, and also because News Corp. is about to launch its Fox Business News channel, buying Dow Jones would give it a number of different experts and financial information it could use on that channel," says CBS News business reporter Alexis Christoforous.

The union representing Dow Jones employees, the Independent Association of Publishers' Employees, was harshly critical of the prospect of being owned by Murdoch, and issued a statement saying that Murdoch's bid was opposed by the staff "from top to bottom."

"Mr. Murdoch has shown a willingness to crush quality and independence, and there is no reason to think he would handle Dow Jones or The Journal any differently," the union said. "Despite our differences of opinion with current management, we strongly encourage the Bancrofts to continue to stand up for the institution's independence, and to walk away from this offer."

News Corp. released a short statement confirming the offer and characterizing it as "friendly." A spokesman for Dow Jones said the company had no other comment beyond its statement.

Shares of Dow Jones initially surged almost 60 percent in late morning trading after the financial news network CNBC reported on the takeover bid. That led to a trading halt that was lifted after Dow Jones confirmed details of the offer.

Dow Jones' shares shot up $20.95, or 58 percent, to close at $57.28 in very heavy volume on the New York Stock Exchange after reaching as high as $58.47. They had traded in a 52-week range of $32.16 to $40.08 before Tuesday's news.

Like other newspaper publishers, Dow Jones' shares have been beaten down over the past few years amid sluggish advertising and rapidly changing media consumption habits as more readers and advertising dollars move to the Internet.

But that hasn't prevented an unprecedented level of acquisition activity in the industry. Earlier this month Tribune Co. agreed to go private in an $8 billion deal led by real estate investor Sam Zell, and last year McClatchy Co. acquried what was then the second-largest newspaper publisher in the country, Knight Ridder Inc., following a shareholder revolt.

Also, the New York Times Co., which like Dow Jones and several other newspaper companies is controlled by a family through a special class of shares, is facing investor unrest over its own sluggish financial performance. Last week shareholders withheld 42 percent of their votes for directors, a public rebuke to the Sulzberger family, which controls the company.

Shares of McClatchy gained 58 cents, or 2 percent, to close at $29.48 on the NYSE. Shares of Washington Post Co., another publisher with two classes of shares, gained $21.30, or 2.9 percent, to close at $765.30 on the NYSE. New York Times's stock gained $1.18, or 5 percent, to finish at $24.58 on the NYSE.

News Corp. started out in the newspaper business and still owns a large number of papers, largely in the United Kingdom and Australia, including The Sun tabloid in England, The Times of London and the New York Post.

Reducing the number of business news outlets is "very, very troubling," Hugh Johnson, chairman and chief investment officer of Johnson Illington Advisors, told CBS News.

"A News Corp.-Dow Jones deal is sure to be met with lots of raised eyebrows, certainly from federal regulators, and I would imagine if Dow Jones were to accept and a deal were to happen, that both companies would probably have to sell off some assets in order to get the green light," says Christoforous.

The company is now a major global media conglomerate and owns the Fox broadcast network, Fox News Channel, MySpace, the Twentieth Century Fox studio and satellite broadcasters in Europe and Asia.

News Corp., which has a market value of about $70 billion, could easily afford the price it is offering for Dow Jones. The company had $5.4 billion in cash on its balance sheet at the end of the year, and could readily raise more through borrowings. Fitch Ratings, a credit rating firm, said that even if News Corp. funded the $5 billion purchase price entirely with debt that it wouldn't affect the company's debt rating.

In addition to The Wall Street Journal, Dow Jones also publishes Dow Jones Newswires, Barron's, several leading market indicators including the Dow Jones industrial average and a group of community newspapers.

[harp1963]

"Men desire authority for its own sake that they may bear a rule, command and control other men, and live uncommanded and uncontrolled themselves" (St. Thomas More, A Dialogue of Comfort).

[j0hnwi11iams]

Isn't that nice, a smiling old cynic mining the public trust. America is being sold short.

[j0hnwi11iams]

Murdoch owned "News" Corp is a disease spreading cheap entertainment. We need to bring back the fairness doctrine, if only to apply it to these monstrous corporations who build empires by undermining the news.

[marcodele]

Maybe he could hire Anne Coulter for public relations? It would give her someplace to go in NYC without getting egged.

[ikenneth]

TO THE WALL STREET JOURNAL:

MILLIONS OF PEOPLE INCLUDING MYSELF PLEAD YOU DO NOT SELL TO NEWS CORP. KEEP YOUR INTEGRITY.

THANK YOU

[irishmail42]

"Murdoch to buy Dow Jones." Perhaps he'll get Bill O'Reilly from Fox News to head up the Wall Street Journal's editorial page. What joy!

[taddles-2009]

The Journal is already a right wing neo-con tool, not sure a right wing facist like Murdoch owning it would change it much. Except for the fact that it would then rival the "Star" and the "Enquirer" for bogus articles. But then would that be much of a loss?

[bildooreilly]

Sounds like you took it pretty personally, sorry if I disrupted your little fantasy world.

--------------
bildooreilly, Thank you for explaining that to us because our tiny little minds, being the suckers we are, never would have figured that out or been able to make opinions for ourselves. We are very fortunate to have a socially aware genious like yourself to help us out. Thanks
Posted by superchez1 at 02:13 PM : May 01, 2007

[pepperp1]

Oh great, more from the fair and balanced crowd, that will blow the Dow%u2019s creditability.

[huskerarmy]

"not to mention the Pro-America cable news show FOX news......"
Fox News... "Pro-America"? Come on now preceptions. We've been through this with you before. Butchering the truth and shreading the U.S. Constitution is not "Pro-America."

[acctriangle]

studio41,

You are right on!!! That was an excellent synopsis.

Let me also add, that the more limited control of the media there is, the worst it becomes when only a few end up calling the shots. When this the case there is no such thing as objectivity only biased spin - i.e. Fox News.

When media companies were snapping each other up, Wall Street was loving the trend until they found out these media conglomerates were having a difficult time slashing costs and generating revenues and improving profit margins.

I am glad to see media companies, well at least newspapers, breaking up again in terms of ownership to now being owned by local people such as case as the Philadelphia Inquirer as an example. We need more decentralization and less centralization.

But watch, our Democratic-controlled Congress will probably end up okaying the deal if the Bancroft's actually decide to sell.

[lochlan-2009]

"After opening at $37.12, the shares jumped $20.95, or 58 percent, to $57.28 before being halted on the New York Stock Exchange for news pending."

"buy the company for $60 per share"

Holy Jesus, 58%, in one day. A happy day indeed for a select inside few, and a whole lot of traders just got a bonus.

Looks like one more news source is about to be wiped off the map. It will be interesting to see how well the wall street journal sells under a media empire so obviously in control by the corporate elite. The majority of the readers for the journal are fairly intelligent unlike those who listen to fox. The other funny thing is if they want to make another 60% all they have to do is sell their stock short and let the deal fall through.

[hazelknows]

Ruppy, your doing a heck of job......

[perception5]

Murdoch's brand of lowbrow, sleazy programming on Fox altered the television landscape forever. ABC, CBS and NBC hadn't dared step into that direction until Fox broke the ice.

Will this scourge now tear down another American institution?
Posted by studio41 at 02:16 PM : May 01, 2007


......... Yeah, isn't terrible how American Idol is ruining the country....... and the nerve of them to raise $100 million dollars for the poor during "Idol gives back"........not to mention the Pro-America cable news show FOX news......

Liberals "get a life" get "positive" never has this country ever seen a party, the Dems, so destructive..........NEVER

[CBSTV]

Murdoch's influence has dragged down the quality and ethics of television broadcasting and journalism. He transformed great institutions of public service into mere objects for generating cash.

First, Murdoch propagated a string of tabloid newspapers that pushed the journalistic needle towards entertainment and poor taste. Then, his Fox television operation led the charge to diminish the public interest responsibilities of local stations and networks. Murdoch's brand of lowbrow, sleazy programming on Fox altered the television landscape forever. ABC, CBS and NBC hadn't dared step into that direction until Fox broke the ice.

Will this scourge now tear down another American institution?

[bildooreilly]

Major media is nothing but an advanced from of PRAVDA, everything on your television is owned and created by a few huge corporations. If you watch much television at all you're living in a FANTASY WORLD that your satanist illuminati leaders have conceived just for you.... It doesn't matter if you like FAUX News, CNN, CBS, NBC, ABC or whatever, you're being played and preyed upon. They've captured your tiny little minds hook, line, and sinker.

[bildooreilly]

Turn off the boob tube suckers, they've been lying to you for decades.... grow a brain...

[marcodele]

The only good thing about Fox News is that it keeps all the idiot neocons in one place.

[marcodele]

Today in the Wall Street Journal

"NEIL YOUNG WASHED UP: LEE GREENWOOD STILL SELLING ALBUMS"

"AN IN DEPTH THIRTY YEAR STUDY OF A LAND DEAL
IN WHITEWATER ARKANSAS BACK IN THE 70'S - HOW DIRTY CAN HILLARY AND BILL GET?"

"WIDOWS OF 9/11 - GRIEVING OR GREEDY?"

"VENEZUELA PROBABLY HAS WEAPONS OF MASS DESTRUCTION MAYBE"

"HALLIBURTON: AMERICA'S BEST FRIEND"

"THE GOOD BUSH FINALLY RUNS: PRESIDENT JEB"

"MILITARY LAUNCHES SHOCK AND AWE CAMPAIGN ON
HOLLYWOOD: LIST OF COMMUNIST SYMPATHIZERS GROWS"

"NEW 'MURDOCH-ATRON' COUNTS ELECTION VOTES MORE EFFICIENTLY"

"EVIDENCE SHOWS ROSIE ODONNELL KICKED A PUPPY AS A CHILD"

"MARRIED *** AFTER YOUR CHILDREN NOW"

[jjreding-2009]

For someone who calls himself 'perception', you don't seem to have any. Why is it do you think that your glorious FOX news is the ONLY news outlet in the world broadcasting its truth while Reuters and BBC, not to mention ALL the major networks, AP and UPI are saying something diametrically opposed? I suppose FOX is the only one who is right and everyone else is lying. Some perception you have.