(Update) Breaking News: Rupert Murdoch and Dow Jones Agree On WSJ Editorial Structure

Posted by , Jun 26, 2007, 1:05pm

Rupert Murdoch New York Times Wall Street Journal.jpgNews Corp. and Dow Jones have agreed on a plan to protect the editorial independence of the Wall Street Journal, Reuters is reporting. The Bancroft family, which controls 64% of Dow Jones shares, is currently being briefed on the agreement and has yet to approve.

The Financial Times reported last night that a Dow-Murdoch deal was close at hand after contentious bargaining by both sides yesterday and over the weekend.

The content of the agreement has not been released, but will likely fall somewhere between Murdoch’s arrangement with the Times of London and the initial proposal from Dow Jones that sought to create an autonomous, Bancroft-appointed board to hire the Journal’s publisher, executive editors and wire chiefs.

If this agreement is accepted by the Bancrofts, the talks will likely move to pricing. Currently, Murdoch is offering $60 per share ($5bn) with conflicting reports as to his willingness to increase the offer. If NewsCorp. and the Bancrofts can agree, it is likely that a deal will not be announced until at least next week.

Dow Jones, News Corp. Agree on Editorial Structure: Reuters [Reuters via CNBC]
Murdoch makes progress on WSJ [Financial Times]

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Posted in: Bancroft, Dow, Rupert Murdoch, Wall Street Journal

Comments

Posted by jt, Jun 26, 2007 1:31PM

So now the font size on the front of the wsj will go directly from miniscule and black to huge and red (ala post).

More prescient, whats the over/under on how long it'll take Murdoch to find a way around whatever 'ironclad editorial protections' the Bancrofts think they've negotiated? I say 12, 18 mos after the deal closes, tops.

Posted by LippyTex, Jun 26, 2007 1:34PM

It must be embarrassing to be a WSJ reporter these days with that editorial board.

Posted by Bulging Bracket, Jun 26, 2007 1:52PM

Over-under all depends on how the elections are going. If Rupe's happy, definitely more than 18 months, if he's not liking the way things are going, 12 will be pushing it.

Posted by jt, Jun 26, 2007 4:00PM

true BB, assuming the agreement is signed lets say by aug/sept (figure in more posturing and infighting amongst bancroft factions), deal closes sometime in Q4, coming into mid spring/summer 2008 he'll probably be all up in that shiznit.

Of course as you say, if come April/May and Hillary (or worse, Obama) is leading in the polls, I'm sure Murdoch'll just stop printing the WSJ (until post-election due to "restructuring") and just distribute the Post in its place.

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