Rupert Murdoch’s bid for Dow Jones is attracting some competition at last. The latest one to join in on the saga is Philadelphia Inquirer’s owner Brian Tierney. He has expressed an intention to make a rival bid in the event Dow Jones calls for a formal bidding process.
In an interview to The Inquirer on Wednesday, Tierney asserted:
If there was a formalized bidding process (for Dow Jones), it would be our intention to participate. We would participate as Philadelphia Media Holdings, along with other investors. We wouldn’t do it alone.
Clearly, Tierney is not mulling rivaling the $5 billion Murdoch bid on his own. He is considering stepping in after forming some sort of a consortium.
Brian Tierney is the owner of Philadelphia Media Holdings, which owns The Philadelphia Inquirer, the Philadelphia Daily News and Philly.com. Tierney acquired the Inquirer for $562 million and matching Murdoch’s bid will require some doing on his part.
News Corp.’s bid, which values Dow Jones at $60 per share, has been resisted in several quarters. All the same, it promises a dividend that is hard to ignore. Tierney, however, has a different opinion. He believes that Dow Jones and its prized possession The Wall Street Journal are some of the best known global brands. Consequently, News Corp.’s offer is not excessive.
The news of Tierney’s interest follows after Dow Jones’ union disclosed that it has approached LA billionaire Ron Burkle and asked him to consider making an offer for Dow Jones. A similar request has been handed to the investment hotshot Warren Buffet.
Dow Jones’ workers union has resisted the offer made by Rupert Murdoch, who has been criticized for interfering in the journalistic integrity of his publications. The Bancroft family, Dow Jones’ owners, and the workers union feel that same fate may befall The Wall Street Journal.
News of the increasing interest in Dow Jones has made things very interesting indeed. It would be surprising if Murdoch ups the ante because he has already denied that. Murdoch is known to be a tough negotiator, let’s see him work the deal here.
