News Corp. offers $60/share for Dow Jones…
CNBC’s Scott Faber broke the news this morning that News Corp. had tendered an offer to buy Dow Jones…
UPDATE: Rupert Murdoch will be on Your World today at 4pm to talk about Dow Jones…
The Bancroft family, which controls Dow Jones with ownership of roughly 62% of voting stock, has hired advisors to help weigh the offer. It remains unclear what the family will choose to do, Faber said, but the offer has not been rejected.
The all-cash bid represents a huge premium for Dow Jones, or about 50% above its 52-week high.
“It is only that kind of premium that would have given the family a reason to even consider selling,” Faber said, citing people familiar with News Corp.’s thinking.
News Corp., which is controlled by Rupert Murdoch, proposed the acquisition in a letter sent to Dow Jones board two weeks ago.
Why is this ICN newsworthy? Because Dow Jones has a deal with CNBC. But Fox Business Channel is launching this year. And though the CNBC/Dow Jones deal doesn’t expire until 2012, the idea that a News Corp. owned Dow Jones would extend the deal, at the expense of FBC, seems ludicrous. But five years is a long time to wait just for FBC so the far more likely reason to make the deal with Dow Jones is to get the Wall Street Journal. And that too could have positive ramifications for Fox Business Channel.
Will whoever owns Dow Jones except the offer? I wish I bought some Dow Jones stock yesterday!
Comment by Noelle — May 1, 2007 @ 2:36 pm
The WSJ and The NY Post as sister companies? Interesting.
Wonder if the WSJ will add a ‘Page Six’ gossip column or Page 3 girls to help sales of the paper.
Comment by malone — May 1, 2007 @ 3:00 pm
And what would happen to that Maria Bartiromo syndicated weekend show? Would it move to FNC?
Comment by Ira — May 1, 2007 @ 3:25 pm
murdoch doing what murdoch does best..swallowing up an already established brand, only to turn the brand into trash. murdoch needs to become an innovator and develop something from scratch.
Comment by Me — May 1, 2007 @ 3:29 pm
^
Ever heard of FNC? Oh yea, that’s you’re obsession here.
Comment by Lurker — May 1, 2007 @ 4:25 pm
Lurker, leave “Me” alone. Don’t you know, Me makes everything he uses from scratch. Has never bought a thing in his life!
And why should Murdoch buy something if he thinks it will help him make more money? Can’t we call just get money from our parents? The basement is great… and if more people realized that, they wouldn’t have to work so hard.
Comment by ImNotBlue — May 1, 2007 @ 5:27 pm