News Corp secures Dow Jones deal

Source: Stock Market Digital

Date :01/08/2007 09:05:17

Media tycoon Rupert Murdoch has won his battle to buy US media giant Dow Jones, publisher of the Wall Street Journal.

News Corporation has secured the deal for $5.6 billion (£2.7 billion).

The $60 a share deal represents a 65 premium to Dow's share price before the bid was announced.

The agreement comes after Mr Murdoch received the required level of support from the Bancroft family, who hold the majority of Dow Jones' shares.

The deal heralds the end of the Bancrofts' 100-year stewardship of the Dow Jones.

The offer was approved by members of the Bancroft family who collectively owned 37 percent of Dow Jones' voting stock.

While the family controlled 64 percent of the shares of Dow Jones, only about half of them needed to support Mr Murdoch's bid for it to succeed.

"I am deeply gratified at the level of support we have received from the Bancroft family and its trustees," said Mr Murdoch.

The Bancrofts had been deeply divided over whether to sell the Dow Jones, which includes the flagship business newspaper Wall Street Journal (WSJ).

They were concerned that Mr Murdoch's aggressive management style would interfere with the editorial integrity of the newspaper.

Richard F. Zannino, Dow Jones chief executive, said: "The transaction will deliver significant returns to our shareholders.

"It will also build on our recent, industry-leading earnings growth and make our company and journalism even stronger.

Under the terms of the deal, a five-member special committee will be established to assure the journalistic and editorial integrity and independence of Dow Jones' publications and services, including the WSJ.

News Corporation owns 100 other newspapers worldwide, as well as television stations and film studios.

August 1 2007