Dow Jones nods through Murdoch’s offer
Published: Aug 01, 2007
Global - Dow Jones & Company and News Corporation have signed a definitive merger agreement for News Corporation to acquire Dow Jones in a deal worth US$5.6 billion (S$8.5 billion) - a Dow Jones spokesperson said it is currently still too early to speculate on how the deal will affect future business activities in Singapore or specific bureaus.
A statement from Dow Jones said Bancroft family members, who hold about 37% of Dow Jones' voting power, have agreed to support the transaction bringing to a close a deal that has been under negotiation for more than three months.
Under the terms of the agreement, parties have agreed on the establishment of a five-member, special committee with the objective of assuring journalistic and editorial integrity and independence of Dow Jones' publications and services. Upon closing of the merger, News Corporation has also agreed to appoint a member of the Bancroft family or another mutually acceptable person to the News Corporation board of directors.
"News Corporation's proposal reflects the uniqueness of Dow Jones and its journalism, brands, businesses and people. The transaction will deliver significant returns to our shareholders. It will also build on our recent, industry-leading earnings growth and make our company and journalism stronger as our strengths are leveraged across News Corporation's global distribution and marketing platforms for the benefit of our readers and other customers," Richard F. Zannino, CEO of Dow Jones said.
"In combination with News Corporation's assets, The Wall Street Journal and the other Dow Jones operations will be more formidable competitors as we extend their information across our print, broadcast and digital platforms around the world," Rupert Murdoch, chairman and CEO of News Corporation said.
Dow Jones will join News Corporations' existing stable of newspapers, websites, television stations and book publishing operations - the merger is expected to close in the fourth quarter and is subject to approval by Dow Jones stockholders.