News Corp. closes in on Dow Jones purchase

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New York—Rupert Murdoch’s News Corp. has reached a tentative agreement to buy Dow Jones & Co., publisher of The Wall Street Journal, for the originally offered price of $5 billion, according to the Journal. The plan will be put to the full Dow Jones board Tuesday evening for its approval, the Journal reported Tuesday. The deal also needs approval by the Bancroft family, which controls 64% of Dow Jones’s voting stock. A major sticking point of the months-long negotiations has been concern among the some of the Bancroft family about protecting editorial independence at the Journal. Dow Jones declined comment about the Journalstory. The seeming endgame in the Dow Jones saga comes less than a week after News Corp. said that its new Fox Business Network cable TV channel will debut Oct. 15. “Fox Business doesn’t make your heart beat faster, but a brand with the Journal’s content and Dow Jones’ resources would be a formidable competitor for business news,” said Mark Edmiston, a managing director at media investment bank AdMedia Partners. He added that a News Corp. takeover of Dow Jones would give business advertisers access to a “powerful combination of TV, online and print delivering a comprehensive package of news.” Dow Jones is scheduled to release quarterly results later this week.
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