If Rupert Murdoch had not made the bid for Dow Jones & Company (DJ), a number of Wall Street Journal workers may have already lost their jobs, according to a New York Times article. They cited a person close to the Dow Jones management and senior editors at the company as their sources.
The company had already been considering reducing their staff size with the continual decline of advertising revenue. Without Murdoch's bid for the company, they would have already been let go.
If no deal is made for the company, estimates are that reductions will start to take place within several months, probably through buyouts rather than laying people off.
Murdoch has said he's going to increase the overall size of the staff if he takes over the company, although where in the overall Dow Jones company that would occur is open to interpretation.
When you consider the breadth and reach of News Corp. (NWS-A), Murdoch's statement is probably accurate and able to be backed up. The use of the information of Dow Jones spread across the numerous News Corp. properties would give it the power to increase the revenue and reach of the company. This would give more opportunities for growth and increased hiring.
For the print Wall Street Journal, they are becoming more vulnerable as they rely on about 60 percent of their revenue from Business-to-business ad revenue, which is looking to the Internet more and more.
When put into this context, it is making less sense, when the underlying fundamentals are examined, that the company would continue to resist the News Corp. bid. In truth, it would be much better for the workers and Dow Jones to accept it. If there is no takeover, Dow Jones will be exposed even more on how weak they've really become.
Related Coverage:
Ron Burkle Finally being Brought into Dow Jones Soap Opera
Is Rupert Murdoch being Held to a Higher Standard than His Competitors?
Dow Jones says Story about Completed Deal with Murdoch False
Wall Street Journal Editor Supports Dow Jones, News Corp. Agreement
New York Times Article says if Murdoch buys Wall Street Journal, Dark Day for American Democracy
What the Real Battle over Dow Jones is About
Rupert Murdoch Retains Power to Hire and Fire at Wall Street Journal
Dow Jones, News Corp. Come to Editorial Board Agreement
Dow Jones Deal Coming Closer to a Conclusion
Remember to Sign up for my feed, bizzbite and digg this!
Sponsored link: The outsourcing every manager requires - Tampa Locksmith
» Rupert Murdoch Sends Message will Start Business Channel with or without Dow Jones from ManagersRealm
Rupert Murdoch has made the commitment to topple CNBC as the leading business TV channel in the U.S. It's one of the reasons he made the bid for Dow Jones (DJ).With the announcement on Wednesday that the new business TV... [Read More]
Tracked on: July 13, 2007 6:24 PM | Permalink to Trackback