Feeds

Murdoch makes high premium bid for Dow Jones

$5bn surprise offer could tempt Bancroft

Internet Security Threat Report 2014

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.

Beginner's guide to SSL certificates

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.