Rupert Murdoch's News Corp. sealed a $5 billion agreement to purchase the publisher of The Wall Street Journal after three months of drama in the controlling family and public debate about journalistic values.
One of the oldest and best-known franchises in the newspaper industry, beset in recent years by business pressures, now enters a new era as part of a world-wide media conglomerate. The 76-year-old Mr. Murdoch, whose properties range from the Fox television network to the Times of London, negotiated hard to win the paper he long coveted. He has promised to invest more in Dow Jones journalism.
The Bancrofts worried about protecting the reputation of the Journal, the nation's second-largest newspaper. They feared Mr. Murdoch would meddle in the paper's editorial affairs and import the brand of sensationalist journalism found in some of his properties such as the New York Post. Some Bancrofts sought other buyers.
But ultimately, Mr. Murdoch's $60-a-share bid -- a 67% premium above Dow Jones's share price when it became public -- was the only serious offer on the table. Key family members, spurred by Dow Jones's board and advisers, decided they had no choice.
Some of the purists are afraid that Murdoch will jazz up the Journal's staid image and turn it into another tabloid complete with topless stock traders on page 3 (like some of his British papers), but I doubt he'll take it that direction. Murdoch didn't make his billions by being stupid, and if anything, I would expect the editorial board to have more freedom than ever since the company now has so much more money behind it.
The editors themselves, in an editorial that you can read here, are promising no change in standards. We'll see where Murdoch decides to take them.
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