Burkle and Yahoo Might Bid for Dow Jones - Fortune

Supermarket mogul Ron Burkle, who is advising Dow Jones on locating potential suitors to rival Rupert Murdoch's $5 billion offer, might himself make an offer in league with Yahoo, according to a report in Fortune magazine. Other parties have emerged as possibilities, including Pearson, GE and the Philadelphia Inquirer's Brian Tierney, but none has put a counteroffer on the table. Fortune cites a "source in the Burkle camp" as saying Burkle has been trying to bring Yahoo on board as a co-bidder, despite what some observers consider the obscure logic of the Internet giant entering the troubled newspaper market while struggling to keep its footing opposite search rival Google. Burkle is a member of Yahoo's board of directors. He has tried unsuccessfully to acquire other newspaper properties, including the Tribune Company and 12 Knight-Ridder dailies. The Bancroft family, which holds a controlling interest in Dow Jones, objects to a Murdoch stewardship on the grounds that he would likely tamper with the editorial independence of the Wall Street Journal. Fortune points out that Burkle, too, might influence the paper's editorial stance. Burkle has favored media-unfriendly legislation in the past, and is a public supporter of Democratic and liberal candidates. Fortune speculates that Burkle is an attractive potential acquirer to Dow Jones's owners and employees not because he will keep his hands off the paper, but because he is a union supporter, in sharp contrast to Murdoch.

Sources: Fortune, Editor & Publisher
Commentary: Which Would Be Worst for Dow Jones: Murdoch, Burkle or Pearson? [Time] • Yahoo should avoid Dow Jones buyout battle as it fixes company [BloggingStocks.com] • Dow Jones Bid: Is Newsroom Integrity Truly the Key Issue?
Stocks/ETFs to watch: Dow Jones & Company, Inc. (DJ), Yahoo! Inc. (YHOO), News Corp. (NWS), General Electric Co. (GE), Pearson plc (PSO). ETFs: PowerShares Dynamic Media Portfolio ETF (PBS)
Conference call transcripts: Dow Jones Q1 2007, News Corporation F3Q07

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