Dec 13
Dow Jones Shareholders Approve News Corp Bid
NEW YORK — Dec 13, `07 — Rupert Murdoch won control on Thursday of a long-coveted prize, The Wall Street Journal, as Shareholders of Dow Jones & Co. gave final approval Thursday to a $5 billion bid from Murdoch’s News Corp to acquire the media company, the final step needed before one of the world’s most influential newspapers, The WSJ, changes hands.
The controlling shareholders of Dow Jones, the far-flung Bancroft family, had initially rebuffed Murdoch’s approach this spring, but eventually enough of them agreed to accept his rich offer of $60 a share to ensure his bid would succeed.
Dow Jones held the shareholder vote in a hotel in the financial district of lower Manhattan, near its headquarters. The formal closing of the deal is expected to occur either later Thursday or Friday. The vote was 60.27 percent in favor.
Murdoch’s bid of $60 per share represented a massive premium of 65 percent over the price Dow Jones shares had been trading at before his offer became public.
With annual revenue of about $2 billion, Dow Jones is relatively small in an age of conglomerates. But it is one of the most influential forces in American media, especially in financial news, where Mr. Murdoch has placed some very big bets of late. The company includes The Journal, whose daily domestic circulation of more than 2 million ranks second only to USA Today, and Dow Jones Newswires, the Dow Jones indexes, the Factiva information and archive service, Marketwatch.com, and other properties.
Last week Murdoch named a longtime News Corp publishing executive Les Hinton to be CEO of Dow Jones, replacing Rich Zannino, who is leaving the company.