According to this breaking article overnight out of London, it appears the deal is done. Rupert Murdoch has now added Dow Jones, or more importantly the Wall Street Journal to it’s fold of media companies.
This is a big grab for Rupert, but truly what isn’t a big grab for him and his News Corp organization? He had the foresight of a 20 something person when he saw MySpace as a big money advertising platform. He has his pulse on the media of today and yesterday. I am guessing the Mediterranean cruises were booked!
Rupert Murdoch has succeeded with his $5 billion bid for Dow Jones, owners of the Wall Street Journal, according to sources acting for the Dow Jones board. Negotiations on price and matters of principle have been completed, though some details remain to be resolved. None is regarded by either side as a deal-breaker.
The Dow board is confident that the terms of the deal will be accepted by the Bancroft family, which controls a majority of voting shares in Dow Jones, over the next few working days. A formal announcement is expected next week.
On Friday afternoon London time, Dow Jones, reacting to the first posting of this story, issued a statement saying that it was “incorrect”. When The Business contacted Dow’s corporate affairs, however, it refused to elaborate on the record.
The article says that Murdoch will have the right to hire and fire. Basically, they are now in control of what happens.
Under the terms of this agreement, News Corporation will have the ability to hire and fire the top editors and publishers (a matter on which Murdoch would not budge); but a nominally independent five-person committee will have the right of veto on these decisions.
Murdoch and Dow Jones will jointly agree the membership of this panel, which will have the power to choose its successors—a crucial concession to the Bancrofts who are sensitive to the claim that they are sacrificing the Journal’s editorial integrity by selling to Murdoch. The Bancrofts have received extensive legal advice in an attempt to satisfy themselves about the durability of the editorial safeguards.
Technically Speaking, while Rupert goes into years that most consider their retirement years, he marches on and dominates the media sphere.