The battle for the Wall Street Journal isn’t seems to end up early as the scenes in the drama are changing quite frequently.
It was expecting that Murdoch would clinch the deal, but Bancroft family is doing everything possible to stop News Corp’s frowning foray.
Bancroft family, which was jazzed up for not finding an alternative to thwart Murdoch offer, now seems feel easy as supermarket magnate Ron Burkle has agreed to discuss the leeway of the deal with Dow Jones’ board.
Analysts were considering it as Dow Jones’ last effort to defend WSJ from the Rupert Murdoch. But it also fetches little consequence, since it was unlikely Burkle or his Yucaipa Companies would be willing to match News Corp. $5 billion bid for the company.
From the very inception, WSJ’s union was against the Murdoch’s offer and expressed the apprehensions that the deal will annihilate WSJ’s integrity and independence. To frustrate Murdoch, the main union of Dow Jones employees, the Independent Association of Publishers’ Employees, and its financial advisers, Ownership Associates, have been searching for another bidder, and revealed more than a month ago that they were working with Mr. Burkle’s private equity firm, the Yucaipa Companies. But his intention wasn’t clear to top the highly ambitious Murdoch’s $60-a-share offer.
This is not the first time when Mr. Burkle is trying his hand in media industry; prior to it Burkle had made two unsuccessful efforts.
Burkle is not all alone to deter from the Murdoch’s offer, but the General Electric and Pearson, the British publisher, also fell far short of News Corporation’s $5 billion offer.
Although the cloud of uncertainty is looming large on the deal and market is eagerly awaiting the result. Murdoch’s effort to get it and Bancroft family’s intention to save it from him has dragged the deal in a stake war. Whoever clinches the deal, it’s apparent that it will write a precedent, not only in media, but in business history too.
