www.foxnews.com/story/0,2933,269420,00.html
for $5 billion, but the deal, which would add The Wall Street Journal to Murdoch's global media empire, faces doubtful prospects since Dow Jones' controlling shareholders said Tuesday they would vote against it. Clinching ownership of The Wall Street Journal would mark a huge coup for the 76-year old media mogul, landing Murdoch the most authoritative voice in the world of business journalism as well as key know-how and personnel as News Corp. gears up to launch a business-oriented cable news channel to rival CNBC, which first broke news of the proposal earlier Tuesday. The offer of $60 per share represents a huge premium of about 65 percent over Dow Jones' closing share price on Monday. However, Dow Jones said late Tuesday that the Bancroft family, the company's controlling shareholders, said they would vote shares representing just over 50 percent of the company's voting power against the deal. That leaves Murdoch with the option of making a sweeter offer, or it could open the door to other potential bidders.
Advertise Here Advertisements The union representing Dow Jones employees, the Independent Association of Publishers' Employees, was harshly critical of the prospect of being owned by Murdoch and issued a statement saying that the bid was opposed by the staff "from top to bottom." "Mr Murdoch has shown a willingness to crush quality and independence, and there is no reason to think he would handle Dow Jones or the Journal any differently," the union said. "Despite our differences of opinion with current management, we strongly encourage the Bancrofts to continue to stand up for the institution's independence, and to walk away from this offer." Like several other newspaper owners, Dow Jones is controlled by a family through a special class of stock. The company raised the ire of shareholder advocates two years ago by making changes to its rules that would allow the Bancroft family to maintain voting control even if they liquidate part of their holdings. Murdoch has long been know to have an interest in owning Dow Jones, although he said in a public interview in February that he had been "cooling" on the idea and doubted that the Bancroft family would sell. However, he also said at the time that the Journal had a "wonderful brand" and could be doing more to go up against The New York Times. In his interview Tuesday on FOX News Channel, Murdoch said he thought the Journal would be better off as part of a larger media company and could do more to increase its circulation and presence online. Murdoch made a name for himself as a tough competitor in the newspaper world and recently ramped up the circulation of the gossip-heavy New York Post with a 25-cent cover price. The Post, which has lost tens of millions of dollars a year, raised its price to 50 cents Monday. Like other newspaper publishers, Dow Jones' shares have been beaten down over the past few years amid sluggish advertising and rapidly changing media consumption habits as more readers and advertising dollars move to the Internet. The offer from Murdoch comes during an unprecedented level of acquisition activity in the industry. agreed to go private in an $8 billion deal led by real estate investor Sam Zell, and last year, McClatchy Co. is facing investor unrest over its own sluggish financial performance. Last week, shareholders withheld 42 percent of their votes for directors, a public rebuke to the Sulzberger family, which controls the company. In addition to The Wall Street Journal, Dow Jones also publishes Dow Jones Newswires, Barron's, several leading market indicators including the Dow Jones industrial average and a group of community newspapers.
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