Dow Jones Board Takes Over News Corp. Talks; MySpace Founder Makes an Offer

The Wall Street Journal reports that the Dow Jones board will take over negotiations on the company's future from the Bancrofts, the company's controlling family. The board says it will evaluate all strategic possibilities, including staying independent. The shift is expected to hasten a decision regarding Rupert Murdoch's $5 billion ($60/share) offer for the company, which some members of the family, along with many employees, have been resisting on concerns about how to safeguard the Journal's editorial integrity. The family is divided on the sale, and the rift threatened to prolong a decision indefinitely. In related news, MySpace founder Brad Greenspan has offered $60 per share for 25% of Dow Jones. His object is to allow those family members who want to sell to do so without turning over the whole company to Murdoch. Murdoch purchased MySpace parent Intermix Media in 2005, a sale Greenspan opposed. In addition, former Dow Jones executive and 5.2% shareholder James Ottaway Jr. expressed his preference for a sale to Pearson and GE, which have been exploring a possible joint bid. "If the Bancroft family has decided to sell or bring in partners, GE and Pearson would be much better owners and/or partners than News Corp.," Ottaway said in an email.

Sources: Wall Street Journal, Reuters, Bloomberg I, II, CNN.com
Commentary: As The Dow Jones Turns: Board Seizes Rupert Negotiations • Pearson and GE Considering Joint Bid for Dow Jones • Burkle and Yahoo Might Bid for Dow Jones - Fortune
Stocks/ETFs to watch: Dow Jones & Company, Inc. (DJ), News Corp. (NWS), Pearson PLC [ADR] (PSO), General Electric (GE). ETFs: PowerShares Dynamic Media Portfolio ETF (PBS)
Conference call transcripts: Dow Jones Q1 2007, News Corporation F3Q07

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