Continuing Coverage of the Dow Jones Story
From Rupert Murdoch's perspective, he's done everything he's willing to do to buy Dow Jones & Co. (DJ). In one of the last remaining points being bantered around: the offering price, Murdoch said he has no intention of raising it any further.
He also said on a visit to Warsaw, "Everything is done. We are just waiting for a final approval of the Bancroft family. The final approval is in the next two, three week's time or not at all."
I don't think this is a bluff or negotiating through the media. He and News Corp. (NWS-A) have a ton of things on their plate, and the deal for Dow Jones won't have much value for Murdoch if it isn't finished up in a timely manner.
This is the strongest statement Murdoch has made that he is willing to walk away from the deal. There's not a shareholder in the Dow Jones Co. that doesn't know that the price will probably fall to less than half what it is if the deal isn't made.
Most close to the deal think it's unlikely the deal won't go through, as the board inludes three Bancroft family members who wouldn't accept a deal in principal if they knew there was no chance of the family accepting it.
The only somewhat minor competition at this time to Murdoch is former MySpace founder Brad Greenspan who says the Dow Jones board is interested in meeting with him about the offer he put on the table for a 25 percent stake in the company at a $60 per share price. He also said he would invest $250 million in Dow Jones as part of the deal.
But with an agreement on editorial independence in place, it doesn't make much sense to think the board is looking at this seriously. The only thing that could make this feasible is if the personal dislike of Murdoch by the Bancrofts is so strong that they look for anything to escape having to deal with him. I don't think that is the case though. I actually think it's close to it, but not quite there in a way that they would refuse the deal.
If the Bancrofts got what they wanted in general, it doesn't make sense to sit around waiting thinking the time factor will bring them some sweeteners to the deal. The deal was sweet from the moment the offer was made.
Related Coverage:
Dow Jones, News Corp. Come to Editorial Board Agreement
Dow Jones Deal Coming Closer to a Conclusion
Latest Plan by Bancrofts Shows Board may be Just Rubber Stamp for Them
Dow Jones Board Drafting "Editorial Independence" Statement - Will Murdoch Accept?
General Electric and Pearson PLC Drop out of Dow Jones Sweepstakes
Bancrofts Out of the Dow Jones Negotiations - Board Takes Over
General Electric, Pearson PLC Consortium to Buy Dow Jones Already Under Fire
Bancrofts Said to be Readying Proposal for Special Board
Another Dow Jones Suitor Bites the Dust
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» Rupert Murdoch Says He Won't Raise Bid for Dow Jones & Company from www.gospelshout.com
From Rupert Murdoch's perspective, he's done everything he's willing to do to buy Dow Jones & Co. In one of the last remaining points being bantered around: the offering price, Murdoch said he has no intention of raising it any further. [Read More]
Tracked on: June 27, 2007 10:33 PM | Permalink to Trackback