Media ETF Up On News Corp.'s Dow Jones Bid

This week, News Corp. (NWS) submitted a $5 billion bid for Dow Jones (DJ) - that's a 65% premium - now shareholders are hanging on for the ride.

Dan Gallagher and Angela Moore of MarketWatch.com report that the Bancroft family (they control a majority of the voting shares) are opposed to the bid, so the board of directors is taking no action. DJ, like other newspaper companies, have a dual-class stock structure that concentrates most voting power in the hands of a controlling family. These so-called supervoting arrangements prevent a hostile takeover.

PowerShares Dynamic Media (PBS) was up almost 2% on the takeover news and is up just 4% this year. NWS makes up 5.11% of the fund and DJ makes up 2.64%, while Direct TV Group (DTV) makes up 5.1%, and Disney (DIS) holds 5.04%. Stay tuned...

PBS 1-yr chart: