Tuesday, May 01, 2007

News Corp Pursues Dow Jones

Rupert Murdoch of News Corp is interested in the Dow Jones Company, but the feeling isn't mutual. The media maverick has announced the creation of the Fox Business Channel, which is expected to launch in the Fall, and is now focusing on the leading financial publication of the world -- the Wall Street Journal and the vast resources of the Dow Jones Company.

News Corp offered approximately $60 a share, which translates into a $5 billion offering in pursuit of majority ownership. This is a sizable profit for the historic leader in business news. However, if one is from a liberal or even moderate bent, Fox News is considered conservative or even radical. This doesn't appear to stand well with Dow Jones and they are rejecting the pursuits of Murdoch.

If News Corps efforts translates into success, this will disrupt the TV relationship Dow Jones has with CNBC and the new Fox Business Channel will take the role of distributing that information for the world of television. The question is, who will have a greater influence editorially, Dow Jones on Fox or Fox on Dow Jones? Most are guessing on the latter. Ironically, both media are considered conservative by and large, but for some reason Fox is described in terms such as "strident," "polarizing," and "divisive." In spite of this, Fox is also considered among the most influential and the purchase of Dow would only increase that prestige. I, personally would be glad to see that happen and it would only increase Fox's growing reach in the business arena.

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