MySpace cofounder Brad Greenspan has issued an open letter to Dow Jones shareholders outlining a proposal that would avert a $5 billion takeover by News Corp. approved last week by the company's board. The Bancrofts, Dow Jones's controlling family, are meeting Monday to consider the News Corp. offer. Greenspan's proposal includes a $400-600 million loan to be used to buy out shareholders who wish to sell at $60 per share. For all the shares bought with those funds, Greenspan's group would receive the rights to all "value created in the stock above $60 a share." The proposal further suggests the company take on debt to buy back up to half its shares at $60 and finance the company's digital operations. Greenspan's group would receive two seats on the Dow Jones board. The proposal also recommends creating a Dow Jones/WSJ Financial News channel to compete with CNBC and the Fox Business Channel, which will be launched soon by News Corp. Greenspan goes on to suggest 
converting the Journal's subscription website into a mostly free, video-based site. "It's an oddball proposal," said Outsell Inc. media analyst Ken Doctor. "It's very late in the game."
Sources: Brad Greenspan's letter to DJ shareholders, Wall Street Journal, Reuters, MarketWatch, Forbes, New York Times
Commentary: Dow Jones' Bancrofts: Time to Get Off The Pot • Dow Jones/News Corp. Merger Unlikely to Succeed • Dow Jones Board Approves Murdoch Bid; Bancrofts to Decide • Burkle and Greenspan Present Alternatives to Murdoch Bid for Dow Jones
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 Q2 2007, News Corporation F3Q07
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