After a month long vacillation, The Bancrofts family, which controls and regulates Dow Jones, publisher of The Wall Street Journal, ready to look into the Rupert Murdoch’s $5 billion bid to buy the company, as well as other potential offers.
The Bancrofts agree to meet with Mr Murdoch to discuss his bid. The recent development indicates the change of mind of the family members towards the Murdoch expansion, who had tried to debar the Murdoch aggressive bid earlier. Company’s regulator assert in the statement
“We reached to the consensus that the mission of Dow Jones may be better accomplished in combination or collaboration with another organization, which may include News Corp.”
Earlier family alleged News Corp., would destroy the Journal’s journalistic independence and integrity. Bancrofts also refused to talk with the Murdoch, but now Bancrofts has shown the sign of improvement for the proposal and ready to consider other possible strategic alternatives too, to maintain the journalistic integrity.
After getting a initial success for the deal, News Corp. spokesman Andrew Butcher says,
We’re grateful to the Bancroft family for agreeing to our suggestion of a meeting, and we look forward to it
Initially Dow Jones board members criticize the Murdoch offer. Many shareholders alleged that News Corp. could use properties, including the New York Post and the Fox News Channel, to promote his political and business interests. Whereas, some members were interested in the Murdoch alluring $5 billion, or $60-a-share offer, which represented a 64% premium over the trading price before May 1.
Market also reacts positively on the Dow Jones decision and experience rise in its stock by 12% to $59.79.
But the family seems firm on its ambivalence to protect Dow Jones’ journalistic independence.
There can be no assurance that the dialogue with News Corp. or any other party will result in the negotiation, or the desire of family members to pursue the negotiation, and execution of any agreement regarding the company or in any transaction
Image: Telegraph
Via: Reuters
