News Corp bids for Dow Jones
Media giant makes unsolicited $bn bid for publisher of The Wall Street Journal.
News Corp. shares fell more than 4 per cent however as analysts said more exposure to the slow-growing newspaper industry would weigh on company financials.
Analysts and media reports speculated that News Corp.’s offer, while high, could prompt other bidders to emerge, such as Bloomberg, The Washington Post or The New York Times.
Bloomberg said there was “no truth” to the speculation. The two newspaper publishers declined comment.
Owning Dow Jones would give Rupert Murdoch, the majority shareholder in News Corps expensive, but powerful financial news clout backed by the venerable Wall Street Journal brand ahead of his planned fourth-quarter launch of a business news cable channel.
Dow Jones could provide the new Fox Business Channel with a steady stream of real-time news from Dow Jones Newswires, a growing Internet presence, and analysis from Wall Street Journal and Barron’s reporters.