Murdoch bags Dow Jones

01 August 2007

Exactly three months since Rupert Murdoch''s News Corp launched its $5.6-billion takeover bid for Dow Jones, publisher of The Wall Street Journal, the controversial media tycoon has won the required level of support from the Bancroft family that hold 64 per cent of the US media giant''s voting shares.

Members of the Bancroft family who collectively own 37 per cent of Dow Jones'' voting stock approved the $60-share offer at a premium of $60 per share. The sale would end the 104-year majority ownership of the Bancrofts on Dow Jones

"I am deeply gratified at the level of support we have received from the Bancroft family and its trustees," said Murdoch. "Given the Bancrofts'' long and distinguished history as custodians of Dow Jones, we appreciate how difficult this decision was for some family members."

The Bancrofts had been deeply divided (See: Dow Jones board member opposes sale to News Corp) over whether to sell the Dow Jones given Murdoch''s aggressive management style and interference in editorial affairs of his media properties, from the time of his acquisition of the prestigious UK paper, The Times, in 1981 and forcing its distinguished editor, Harold Evans'' (Later Sir Harold) resignation.

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. (See: Dow Jones, Murdoch nearing pact on WSJ independence: NYT)

The Dow Jones board''s endorsement of the News Corp offer prompted director Dieter von Holtzbrinck, who is the chairman of family firm von Holtzbrinck that owns a number of leading German newspapers; to resign in protest saying the takeover would threaten the group''s journalistic values. (See: Director quits Dow Jones over board''s endorsement to Murdoch''s bid)