Rupert Murdoch’s News Corp. has finally prevailed in its bid to buy Dow Jones, the company that owns the Wall Street Journal (and, of course, the famous Stock Index). With the Bancroft family, which owns a significant number of shares, holding out, Murdoch continued doggedly with negotiations, and has finally reached an agreement with the family to buy Dow Jones for $60 per share. The rest of the stockholders are likely to approve the sale now that the Bancroft family has announced its support.
News Corp.’s acquisition of Dow Jones will represent a coronation of sorts for Murdoch. With a prosperous TV network, a market-leading cable news channel, a soon-to-be-launched business news channel, a major film studio, big Internet assets like social-networking giant MySpace, and now The Wall Street Journal, Murdoch has arguably become the King of All Media.
For Dow Jones, this means private ownership now, and for stockholders, a significant increase as shares are bought by News Corp. And, without this deal going through, with so much attention on it, failure would almost certainly meant a plunge for Dow Jones. But what does this mean for News Corp. (NWS) stock?
Well, right now it appears to be holding steady. It is down from a few weeks ago, but this may be just the boost needed for the stock to start gaining. After all, Dow Jones is a venerable brand with respected subsidiaries.