News Corp./Dow Jones: Strategy Part 2…
Variety’s Steven Zeitchek writes about strategy in a News Corp. owned Dow Jones world…
CNBC’s public position is that it’s happy with its Dow relationship deal and will see it through to its completion.
The business news cabler said Tuesday in a statement that “CNBC and Dow Jones have an exclusive news-content-sharing contract, which has been in effect since 1997 and which will expire in 2012. CNBC expects the contract to be honored no matter who owns Dow Jones.”
But a situation where the cable net remains in business with the company that is launching its chief competitor is seen as highly untenable.
And it’s unlikely Murdoch would spend $5 billion on a news operation only to have it feed the cable net he is trying to take on.
More likely, observers say, Murdoch will try to buy out the deal.
There have already been some sparks between News Corp. and CNBC; in its statement, CNBC noted that the net “remains a global leader in business news, providing information that is fast, accurate, actionable and unbiased,” a possible knock on Fox News Channel.
Yeah, their information is accurate alright, is that why the CEO of ADP, the payroll company went on CNBC and had to correct the anchor on numbers that were used during the lead in to the live interview? Is that why the interview abruptly ended after the CEO made the anchor look foolish on the air and then they had to go to break? Is that why the interview had IFB audio problems where the CEO couldn’t even hear one of the questions yesterday afternoon?
Something tells me that the ADP CEO interview isn’t going to make it to their rumored “CEO interview promos” or whatever…
Comment by Nobody — August 1, 2007 @ 10:25 am
I was just curious…can FBN/News Corp *FORCE* CNBC to dissolve the contract (and get a lump-sum payout in return) or will News Corp have to “negotiate” with CNBC some sort of deal?
Comment by Anonymous — August 1, 2007 @ 11:12 am
Not really anything to do with the contract but does anybody know when we can expect to see scheduling information for the FBN? Any how it will impact FNC?, if at all.
Comment by craig gordon — August 1, 2007 @ 11:45 am
For all the crap that Jim Cramer gets, I bet he’s revelling in his win here. He’s been speculating on this outcome since May http://www.stocktagger.com/2007/07/cramer-speculates-on-higher-price-for.html
Comment by John Singer — August 1, 2007 @ 11:51 am
Chickadee: At one time CNBC had the “Journal Editorial Report” but it was likely deemed too conservative and was dropped.
All agreements have contingency and/or “out” clauses and I’m sure the current CNBC/WSJ deal is no exception.
Comment by Ira — August 1, 2007 @ 12:40 pm