News Corp. Forces Dow Jones Stock up over 50%
Earlier today News Corp. announced a $60 per share buyout offer of Dow Jones. Aside from wishing I had owned stock in Dow Jones, I’m not quite sure that I’m the biggest fan of a buyout by News Corp. Ownership of Dow Jones by News Corp. would extend Fox media’s global dominance. Fox News is know for it’s historically conservative slant and while the Wall Street Journal and other Dow Jones publications are not the most liberal, I’ve always been a fan of their objective journalism.
The Wall Street Journal has speculated that other news companies including the New York Times and the Washington Post could both end up placing competing bids. This wouldn’t come as much of a surprise given both companies existing web presence. Will the Bancroft family (the current majority stakeholders) accept Murdoch’s bid? Perhaps, given that the family has already reduced their stake in the company by over 50 percent over the past 20 years. This will surely be an interesting story as events unfold.
Update : The Bancroft family will vote against the News Corp bid. The employees also issued a statement:
The staff, from top to bottom, opposes a Rupert Murdoch takeover of Dow Jones & Co. The massive premium Mr. Murdoch is offering suggests only one recourse to make the acquisition profitable: gutting the enterprise and slashing the staff that make it the leading financial news organization.
I agree with this move. The only thing I wonder though is will we see their stock tank today? My guess is yes.