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Murdoch wins fight for Dow Jones | Murdoch wins fight for Dow Jones |
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Media tycoon Rupert Murdoch has won his battle to buy US media giant Dow Jones, publisher of the Wall Street Journal. | Media tycoon Rupert Murdoch has won his battle to buy US media giant Dow Jones, publisher of the Wall Street Journal. |
His News Corporation firm has secured the deal for $5.6bn (£2.7bn), or $60 a share - a 65% premium to Dow's share price before the bid was announced. | His News Corporation firm has secured the deal for $5.6bn (£2.7bn), or $60 a share - 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. | |
It ends the Bancrofts' 100-year stewardship of the Dow Jones. | |
The offer was approved by members of the Bancroft family who collectively owned 37% of Dow Jones' voting stock. | |
Given the Bancrofts' long and distinguished history as custodians of Dow Jones, we appreciate how difficult this decision was Rupert Murdoch, News Corporation | |
The Bancroft family controlled 64% of the shares of Dow Jones, but only about half of them needed to support Mr Murdoch's bid for it to succeed. | |
'Deeply gratified' | |
"I am deeply gratified at the level of support we have received from the Bancroft family and its trustees," said Mr Murdoch. | |
"Given the Bancrofts' long and distinguished history as custodians of Dow Jones, we appreciate how difficult this decision was for some family members." | |
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. | |
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. | |
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 already owns 100 other newspapers worldwide, as well as television stations and film studios and the purchase of the Dow Jones will add to his growing media empire. |