Feeds

Murdoch makes high premium bid for Dow Jones

$5bn surprise offer could tempt Bancroft

Bridging the IT gap between rising business demands and ageing tools

It's a bit early to do much in the way of analysis yet, but Rupert Murdoch has made a bid through his News Corporation to buy Dow Jones, including the prestigious Wall Street Journal.

The bid is for $5bn at $60 a share, and already the share price has risen to $56 a share.

The company is more usually valued at around $35 a share, and the substantial premium is getting market followers seriously concerned that the core Dow Jones investors may take the money.

The Bancroft family is cited as a major shareholder controlling 24 per cent of the stock, but with voting control. If Bancroft sells, it is assumed the rest of the public will follow suit and the bid will be supported by the board.

We have no insight into the Bancroft state of mind, but Murdoch seems to feel the need to re-assert himself after the near miss of losing personal control of News Corp, when Liberty Media's John Malone kept stake building within News Corp and threatened to undermine Murdoch's control unless he sold him DirecTV, a deal that has now been agreed, but by no means completed.

Murdoch perhaps sees himself as a convert to web based businesses having bought MySpace and game site IGN, and perhaps sees some upside in Dow Jones on the internet, perhaps in real time feeds and news feeds.

The bid came as a complete surprise, and is out of character with prior acquisitions by Murdoch which have focused on his judgment of the tastes of the "average" man in the street, about which he has nearly always been proven to be right.

Copyright © 2007, Faultline

Faultline is published by Rethink Research, a London-based publishing and consulting firm. This weekly newsletter is an assessment of the impact of the week's events in the world of digital media. Faultline is where media meets technology. Subscription details here.

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.