News Corp. Makes Monster Takeover Bid For Dow Jones
from the read-all-about-it dept
While it's not an offer from Yahoo, Dow Jones (publisher of The Wall Street Journal and other financial news outlets), has received an unsolicited takeover bid from News Corp. Rupert Murdoch and Co. are offering $5 billion for the company -- a premium of 65 percent over Dow Jones' closing share price Monday. Some of that premium has disappeared, though, as shares have shot up more than 50 percent today. The company says management and the Bancroft family, its controlling shareholder, are considering the offer, but it's hard to see how they could refuse it, though there's speculation it could set off a bidding war. A News Corp.-DJ tie-up could make a lot of sense, once you get over the disconnect between MySpace and the WSJ. News Corp.'s roots are in newspaper publishing, and its recent push to beef up its online offerings would be bolstered by the content Dow Jones generates, in addition to DJ's strong existing online properties. Another interesting issue the offer raises is how many newspaper companies' ownership structure may be holding them back. The Bancroft family essentially owns all of Dow Jones' class B shares, which carry ten times the voting power of ordinary share, giving them control of the company. The New York Times Company and The Washington Post Co. also have similar ownership structures, which are coming under fire from investors. Backers of such ownership schemes say they're necessary to ensure the companies' commitment to quality journalism, though at this point they seem more crucial to ensure the owners' healthy egos than anything else. The contention that "quality journalism" is at automatically at odds with traditional public ownership or profit-driven private ownership isn't true. In fact, it seems more likely that many newspapers' idea of what they should be doing is an anachronism that's fallen out of step with the market, hence their general lack of success in the internet age -- and a change in their old-style ownership and control structures may be necessary to change their fortunes. Update: Rather unsurprisingly, the Bancroft family says it won't support the offer. However, in after-hours trading, Dow Jones shares haven't pulled back too much, so the market must believe some sort of deal will still happen.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Misunderstood Journalism
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Re: Misunderstood Journalism
AHAHAHHAHAHAHAAHAHHAHAHAHAHAHAHA.
Thats funny.
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Re: Misunderstood Journalism
yeah right. like the great job the new york times and the washington post did on the intelligence failure that was the buildup for the war in iraq. lots of fact checking there. it was a model of responsible journalism.
you can read all about it here.
that's why concern with profits creates problems for news outlets. if there really is a massive overhead for fact checking and impeccible reputations, well then a lot of american news papers are wasting their money.
when you are making and selling things in a factory, cutting costs to boost profits is a great idea. in a news outlet, cutting costs by quoting so-called "experts" and getting exclusives with less than reputable sources instead of paying real journalists to do real investigative journalism is not responsible.
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Faux Street Journal
The WSJ on the other hand is conservative and reasoned. They report from a conservative view with a reasoned approach. They do well at separating opinion from reporting.
What will the Faux Street Journal look like? To me, it will look like an opportunity for competition to stomp a venerable old name into the ground.
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Re: Faux Street Journal
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Its still a premium, as the shares shot up because of the bid.
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Cash + Ass = Much Happiness
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The only good reason to read the WSJ is for all other news than politics.
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Fox is mis-understood as a news agency
Now I have another, worse nightmare for you. Rup's entities swap resources around. Fox had a lease on space for Ryan Seacrest, canceled the show, and now TV Guide is using that for the TV Guide Channel (now Network) studio.
TV Guide recently replace Joan and Mellisa Rivers with Lisa Rinna. Could you imagine WSJ picking up Joan Rivers to do reviews from the trading floor, for the remainder of her contract?
Maybe we'll even get stock quotes on the TV Guide Network...Rup could even do his version of a Cramer show...
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