Dow Jones and Wall Street Journal came under the control of Rupert Murdoch
Media conglomerate of Rupert Murdoch News Corporation signed an agreement to buy U.S.
media company Dow Jones & Co. This is stated in a joint statement, the companies
posted on the website Dow Jones, as well as at News Corp. News of this has led today to a
sharp rise of stock price Dow Jones - more than 11%.
The cost of this transaction is estimated at $ 5, 6 billion, and its terms have been
previously agreed upon management and the board of directors of two holding companies.
Under the agreement, which Murdoch suggested back in April, shareholders will receive $ 60
in cash for each share of Class «A» and «B», which is almost two times more than the
company's shares were worth at the time an offer. Dow Jones has not succeeded in raising
prices.
In addition, members of the Bancroft family, owning a controlling block (64.2% of voting
shares) Dow Jones, also voted for the approval of the transaction. It is known that on May
1, when News Corp. Murdoch made a formal offer to buy Dow Jones for $ 5 billion, the
company refused, and some members of the family until recently were looking for
alternative buyers. Earlier Bancroft inclination was to refuse Murdoch, fearing for the
editorial independence of one of the most influential in the world of American
publications - The Wall Street Journal, as a result of information agreement
"empire" Murdoch - News Corporation - will oversee the publication, which reads
the business and political elite.
In particular, Christopher Bancroft, a member of the Bancroft family, tried to do
everything in his power to block the sale of the company and even bought the shares from
relatives trying to consolidate itself in 51% (controlling) shares of Dow Jones, (he owns
13.3% of preferred shares). However, other representatives of the Bancroft family have
suggested that even though they managed to ensure the independence of the Wall Street
Journal, but in the past 15 years, little has been done to promote the brand in a changing
market.
Nevertheless, after complex negotiations, known for his tenacity Murdoch persuaded the
Bancroft family to meet with him personally and discuss the proposal. According to the
Wall Street Journal, the final agreement was reached on July 16 during a dinner attended
by the CEO, Richard Zannino Dow Jones, Rupert Murdoch and the representatives of News
Corp. Thus, the hundred years, during which was founded in 1882 by a company controlled by
the Dow Jones family Bancroft - completed.
His global media empire, Rupert Murdoch, an Australian by birth, began to build in 1950.
Murdoch is now 78 years old and he owned about 110 publications worldwide, as well as
numerous television channels, television and film studios, Internet portals. In total,
News Corp. includes about 800 companies. Many accuse Rupert Murdoch that he would often
interfere in editorial policy publications, and changes of editors, and his media provides
information in a favorable light Murdoch and all this has a negative impact on their
reputation. In particular, CNN founder Ted Turner in 2003, accused Murdoch that he owned
the media actively promoted in favor of military action against Iraq. Murdoch's name has
become synonymous with "yellow" journalism, based on three principles set out in
due time the father tabloids William Hurst (William Randolph Hearst, 1863-1951):
sensation, sex and crime. In the media business, Murdoch is known by two exceptional
qualities: extreme financial success of their projects and their blatant tabloid. Many had
bought the publication become if not "yellow", then have the explicit
"yellow tinge" - that at one time could not be avoided even known for its
conservatism, the British newspaper The Times. Members of the collective Wall Street
Journal has repeatedly expressed fears that the same fate may befall their publication.
However, according to U.S. media, referring to informed sources, Rupert Murdoch has
promised not to interfere with editorial policy of media groups. In addition, according to
the document, the parties agreed on the timing of the conclusion of the editorial
agreement, which involves the organization of a special commission consisting of five
members, which will monitor the reporting and editing immunity Wall Street Journal and
independent publications and services of Dow Jones. The commission must enter the former
CEO of Associated Press Louis Bokkardi, one of the founders media laboratory MIT's
Nicholas Negroponte, former president of Tribune Publishing, Jack Fuller and Thomas Bray,
former editor of the band comments Detroit News. A fifth member of the commission has not
yet been approved.
Newspaper The Wall Street Journal is the principal asset of the company Dow Jones, and
serves as a benchmark of quality business publications, its real competition can be
considered as only the British The Financial Times and The Economist. Now its circulation
- 2, 1 million copies. In 2006, the company's revenue totaled $ 1, 8 billion, net income -
$ 386 million
In Wall Street Journal media group Dow Jones news agency owns Dow Jones Newswires, an
investment newsletter Barron's, the magazine SmartMoney, a family of regional newspapers
Ottaway, web-portal and provider MarketWatch stock index Dow Jones.