Continuing Coverage of the Dow Jones Story
What's important about the news the Bancroft family, who control Dow Jones & Co. (DJ), are said to be mulling over a set of proposals that they will present to Rupert Murdoch and News Corp. (NWS-A) that they hope would ensure the editorial integrity of The Wall Street Journal, is that they've come to the conclusion that Murdoch is the one they'll be dealing with.
Those close to the situation say that other elements of the deal can be negotiated once the proposals are worked out and accepted. Murdoch has already said he's willing to accept some type of board, but not one that will not allow him to run the business if he invests $5 billion into it.
Murdoch offered to create a board just like the one that was put in place at the Times of London and the Sunday Times. The Bancrofts want enforcement clauses in the agreement. That doesn't seem to have much chance of being part of the deal to me. That would allow them or others control of the asset, which as I said, Murdoch will in no way allow.
Again, the importance of noting this is they understand that Murdoch is the one they need to deal with. When Microsoft (MSFT) says that the deal makes no economic sense, you know Murdoch offered far more than fair value for the company. At the price he offered, News Corp. may be about the only company in the world that the price would make sense for.
In related news, Fidelity Management and Research announced it sold almost all its shares in Dow Jones, which was a smart move. Even if Murdoch gets the company, it will probably drop to pre-offer prices until it is seen what will be done with the property. It may be years before it reaches the level Fidelity sold at. Even if the $60 per share offer is accepted, Fidelity wouldn't get much more for holding it.
Related Coverage:
Another Dow Jones Suitor Bites the Dust
More Suitors for Dow Jones than Men Saying They were Father of Anna Nicole Smith's Baby
Brian Tierney Interested in Dow Jones
Union for Dow Jones Employees Claims Ron Burkle Joined Them to Battle Rupert Murdoch
Journalists Threaten to Walk Out if Murdoch Gets Dow Jones: Who Cares?
Why the Bancrofts Need to Sell Dow Jones & Company
Murdoch Family, Meet the Bancrofts!
Dow Jones & CO.'s Controlling Family to Meet with Rupert Murdoch
Battle for Control of Dow Jones may Eventually become a War
Remember to Sign up for my feed, bizzbite and digg this!
Sponsored link: The outsourcing every manager requires - Tampa Locksmith
» Bancrofts Said to be Readying Proposal for Special Board from BizzBites.com
What's more important than the proposal, is the fact that the Bancroft family has concluded Murdoch is the one they're dealing with. [Read More]
Tracked on: June 12, 2007 3:32 PM | Permalink to Trackback