After acquiring The Dow Jones, Murdoch is mapping the road ahead for the company as News Corp. is set to bolster WSJ’s presence, especially in Europe and Asia and plan to sell off Dow Jones’ collection of Ottaway community newspapers to accumulate money for it.
While announcing company’s fourth quarter earnings, Murdoch disclosed its further plans. To expand WSJ’s reach for global news, Murdoch reaffirms its planed investment in Europe and Asia to expand coverage of national, international and non-business news, to compete with The New York Times and other (US) national newspapers.
However, Murdoch’s decision to sell Ottaway group, raises some doubts as Jim Ottaway, who has 7 per cent of Dow Jones voting shares, has been one of the most vocal critics of the sale to News Corp, saying Mr Murdoch’s hands-on editorial style and track record in China would damage the independence of the Journal. It might be a major reason behind the decision rather than little money, which Murdoch will get from it.
Last week, News Corp. sealed a hard-fought Dow Jones deal for $5 billion, or $60-a-share offer, which was 67% higher than Dow Jones’ trading price before word of his proposal, became public.
By acquiring Dow Jones operations, News Corp might consider lowering advertising rates or the price of subscriptions to snare business from the Times as by combining duo; it will save up to $50m annually.
News Corp. and Dow Jones executives are considering dropping online fees for WSJ.com to gain healthy profit in the long run. However, for the Journal, Murdoch won’t take similar measures. Media mogul also rates the deal as a perfect complement to his upcoming Fox Business Network, which will launch on Oct. 15. News Corp. plans to invest up to $200 million in it, but Dow Jones’ alliance with CNBC, which runs for another five years, could be an obstacle for Murdoch to expand globally.
Via: Forbes
