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Continuing Coverage of the Dow Jones Story

The interest of Brian Tierney in potentially purchasing Dow Jones (DJ) reveals the underlying problems the company will face no matter who buys it. It's not simply the company of course, but the entire newspaper industry that's under extreme pressure.

For example, with all the resistance to Rupert Murdoch and News Corp. (NWS-A) getting the company, Tierney himself had to make tough moves when he bought the Philadelphia Inquirer and the Philadelphia Daily News for $515 million.

To make the two newspapers fiscally sound, he had to make large cutbacks at both the papers to battle the fallout from decreasing revenue and circulation. He ended up having to fight with the labor unions over the issue. In the end, he has so far been able to stop the the circulation dropoff at the Inquirer.

It doesn't matter who ends up owning Dow Jones, something similar will have to be done. Last year advertising revenue dropped by a huge 12 percent, something that obviously can't be allowed to continue for long.

Concerning the bid by News Corp. for Dow Jones, Tierney said:

"I don't believe News Corp is overpaying. Dow Jones is one of the world's great journalistic enterprises. It contains some of the most powerful brands in business -- Dow Jones, The Wall Street Journal, Barrons -- in any industry these are the most powerful brands. And if there was an explicit process we would be inclined to participate in conjunction with others."

When you look at this from an industry standpoint when what will have to be done to shore up the company, it's becoming increasingly suspect the stated reason why some people are so ferociously resisting the deal, that they're concerned about its "editorial integrity."

It seems like it's a smokescreen for saying they don't want someone with a conservative bent getting hold of the property.