Dow Jones Board Approves Murdoch Bid; Bancrofts to Decide

Following a three-hour meeting Tuesday night, the board of directors of Dow Jones has endorsed Rupert Murdoch's $5 billion bid to take over the company. The Bancroft family, which holds a collective 64% stake in Dow Jones, is now considering the proposal, and is believed to remain sharply divided. Of the four family representatives on the board, Christopher Bancroft -- who is adamantly opposed to the sale -- left the meeting early without voting; Leslie Hill, another opponent of the sale, abstained; and Elizabeth Steele and Michael Elefante voted in favor. Elefante is the family's lead trustee. One other director, Dieter von Holtzbrinck, abstained, and the rest voted in favor. Christopher Bancroft and Leslie Hill have both tried to come up with alternatives to the sale to Murdoch, but their efforts have not resulted in any viable challenges. The board released a statement indicating it is "prepared to approve and recommend" the offer to shareholders. The statement also indicated the family is expected to respond promptly, suggesting Murdoch is prepared to withdraw the bid if deliberations are drawn out. "For all the teeth-gnashing and hand-wringing over Murdoch as owner, ultimately, money talks," said Robert Broadwater, managing director of media investment bank Broadwater & Associates. "This is a blow-away offer."

Sources: Wall Street Journal, Reuters, Bloomberg, Financial Times
Commentary: News Corp. and Dow Jones Reach Tentative Deal -- WSJ • At Long Last, Dow Jones And News Corp. Reach (Possible) Deal • Why Buying Dow Jones Could Be A Money Loser For News Corp.
Stocks/ETFs to watch: Dow Jones & Company Inc. (DJ), News Corp. (NWS). Competitors: Reuters Group PLC [ADR] (RTRSY). ETFs: PowerShares Dynamic Media Portfolio ETF (PBS)
Earnings call transcripts: Dow Jones Q1 2007, News Corporation F3Q07

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