Microsoft, GE Considered Dow Jones Bid -- WSJ

General Electric and Microsoft considered making a rival bid for Dow Jones & Co. but have abandoned the idea, according to the Wall Street Journal. GE and Microsoft already work together on the MSNBC cable news network. Their intention was to combine Dow Jones with parts of GE's NBC Universal. Rupert Murdoch has bid $60 per share ($5 billion) for Dow Jones, an offer the controlling Bancroft family is reluctant to accept despite the significant premium. GE is said to be concerned that if Murdoch's bid is accepted, the purchase will strengthen News Corp.'s planned TV financial-news channel, which will compete directly with GE's CNBC. GE and Microsoft are believed to have discussed a matching $60-per-share offer. Now that talks with Microsoft have broken down, GE might pursue another partner. Dow Jones and CNBC are committed to an exclusive content-sharing deal that will last until 2012. According to that agreement, The Wall Street Journal -- Dow Jones's central property -- provides content to CNBC.

Sources: Wall Street Journal, Reuters, MarketWatch
Commentary: Rupert Murdoch On Resisting Google, Making The WSJ Free and Digital Investment • Philadelphia Inquirer's Tierney Mulls Dow Jones Bid -- WSJ • Ron Burkle to Work with Dow Jones Union on Alternatives to Murdoch Bid
Stocks/ETFs to watch: Dow Jones & Company, Inc. (DJ), News Corp. (NWS), Microsoft Corp. (MSFT), General Electric Co. (GE). ETFs: PowerShares Dynamic Media Portfolio ETF (PBS)
Conference call transcripts: Dow Jones Q1 2007, News Corporation F3Q07, General Electric Q1 2007, Microsoft F3Q07

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Comments

[Victor Cook:]

Sorry to disagree with analysts at two of the biggest companies on the planet, but the economics make a lot of sense if you look at the long term impact of Mr. Murdoch's buyout of Dow Jones through the lens of enterprise marketing framework. See www.customersandcapita.../

2007 Jun 11 05:53 PM