Welch on News Corp./Dow Jones…
Jack Welch appeared on Your World with Neil Cavuto to talk about the News Corp. bid to buy Dow Jones.
Brilliant. Absolutely brilliant. I think if anybody gets it, he’ll get it.
He’s done this before. He’s made big strategic moves that have worked out. I’d put my money on it.….10 years ago, I was fooling around with this one. I was talking to the family and nibbling, and over. I think things have changed. I think that there’s a new leadership at the paper, trustees have changed. I think there’s a lot of things that changed now… and I think… I heard somebody this morning on TV mention that with the capital gains where they are now, this is a great bid for this. If this doesn’t go through, if they don’t take something, this family is going to have a real problem. There’s huge money out there now.
I think you’ve got to have cash flows to take care of it… I think Rupert sees the synergies of his global network. I think his business channel that you’re fooling around with that’s a nuisance to our CNBC, there’s going to be cash flow from that. The other guys don’t have this. A private equity buyer gets a newspaper with an online piece– now their online piece is very good. They’re getting more, as I understand it, more than half their revenues from their online piece. So they’ve done a real good job with that. It isn’t enough for a financial buyer. He doesn’t have cable distribution, he doesn’t have satellite distribution, he doesn’t have global reach, so it’s a tough go to buy a little piece.
This is a one-off deal. This is beachfront property, truly beachfront property, one of a kind. And this property fits his strategy. Now for a guy, KKR, Blackstone, to own a one-off property without a lot of synergy isn’t a great deal. For him, it’s a homerun.
word has it the deal wont go through…do we see a hostile takeover? i bet if murdoch and ailes dont get it, they will hostily take it over.
Comment by Me — May 1, 2007 @ 6:03 pm
Where’s the word coming from?
The voices in your head aren’t reliable sources.
Comment by ImNotBlue — May 1, 2007 @ 6:12 pm
The owning family has 62% of the stock. If they decide to not sell then Murdoch can’t do a hostile takeover. There would need to be more than 50% of the stock owned outside of the family, or a split in the family, for something to happen like that.
Comment by malone — May 1, 2007 @ 6:30 pm
^
Actually there are two stock classes in Dow Jones. The family owns the majority of the important one with the shareholder vote. So if they say no, there’s nothing the shareholders can do about it. Looks like right now the family is saying no.
Comment by Lurker — May 1, 2007 @ 6:39 pm
I saw this live…
http://farm1.static.flickr.com/196/480570461_d26a523e45_o.jpg
and in fact I du no why FNC is speaking too much about it. WSJ’s are sayin no… Quoting: The Dow Jones union president said the Wall Street Journal “is a premier publication and everything that News Corp. brings to the table runs the risk of tarnishing that reputation.”
Perhaps this is now history… we dont know. But the effect is nice: DJ shares are up more than 50% and News Corp are down 4.2% now.
Comment by Rodrigo — May 1, 2007 @ 8:20 pm
Spud: Sometimes I wonder how you pick the topics here: Neil Cavuto’s interview with Rupert Murdoch who preceeded Jack Welch was much more interesting and informative.
Comment by Ira — May 1, 2007 @ 8:21 pm
Tarnishing, eh? I’ll bet the “groupies” crow LOUDLY over that one!
Comment by Terance — May 1, 2007 @ 8:25 pm