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Rupert Murdoch Buys Dow Jones and WSJ for $5.6 Billion

Authored by Jay Baage on August 1, 2007 - 4:44am.
New York - Rupert Murdoch's News Corporation said on Wednesday that it would buy Dow Jones & Co Inc. for $5.6 billion, adding the Wall Street Journal (WSJ) to its worldwide media empire. The deal is a triumph for Murdoch, Chairman and Chief Executive Officer of News Corp, who managed to overcome dissent within the Bancroft family, which controls voting interest in WSJ publisher Dow Jones & Co.

In a joint statement, Dow Jones and News Corp. said Bancroft family members holding about 37 percent of Dow Jones's voting power agreed to support the deal. That level of support represents more than half of the 64 percent voting shares held by the family, according to Reuters.

Under the terms of the agreement, which has been approved by the boards of both the companies, Dow Jones shareholders will receive $60 in cash for each share of common stock or Class B common stock that they own, the companies said.

For Rupert Murdoch, it has been a decades-long dream of his to run the venerable financial daily. The WSJ and other Dow Jones properties is a nice addition to Murdoch's sprawling media empire and it is expected to aid the launch of a Fox business channel later this year.

Rupert Murdoch said in a statement:
“I am deeply gratified at the level of support we have received from the Bancroft family and its trustees. Given the Bancrofts’ long and distinguished history as custodians of Dow Jones, we appreciate how difficult this decision was for some family members. I want to offer the Bancrofts my thanks, and an assurance that our company and my family will be equally strong custodians.”

M. Peter McPherson, Chairman of the Board of Dow Jones, said:
"Having thoroughly reviewed News Corporation's proposal, the Dow Jones Board has overwhelmingly voted to approve the definitive merger agreement. This decision has been difficult and emotional for a great many people because of the long history of this great institution. The board has concluded, with a great deal of family support, that the proposal provides outstanding financial value and provides excellent opportunities to the extraordinary Dow Jones franchise. Also, we wish to thank the Bancroft family for their years of faithful stewardship. The editorial independence agreement proposed by the Bancroft family is a strong agreement about which all can be pleased."

Mr. Murdoch added:
“Dow Jones is a vibrant company and one of the world’s greatest media franchises, with a portfolio of brands that has no equal in financial information and business journalism. In combination with News Corporation’s assets, The Wall Street Journal and the other Dow Jones operations will be even more formidable competitors as we profitably extend their invaluable information across our print, broadcast and digital platforms around the world.”

Joakim Baage

Related Links:
Dow Jones & Company and News Corporation Enter Into Definitive Merger Agreement
News Corp. to buy Dow Jones for $5.6 billion (Reuters)
Dow Jones sale a sign of dynasties' decline (LA Times)





Published in DMW Daily, August 1, 2007
tags: Deals | Internet | Publishing | News Corp | Rupert Murdoch | Dow Jones |



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