Laura Goldman, who worked on Wall Street for more than 20 years for such firms as Merrill Lynch and UBS Warburg, writes in a column syndicated by the McClatchy-Tribune News Service that News Corp. CEO Rupert Murdoch will eventually walk away from his offer to buy Dow Jones & Co., the parent of The Wall Street Journal, but only after extracting something in return.
First, Goldman wrote, “All the free and up-to-the-minute information that is available on the Internet has called into question the very survival of newspapers. The next morning is too late for most people, like me, who are addicted to the 24/7 news cycle. The Wall Street Journal is the rare newspaper that has been able to continue to charge for its Internet content.”
Later, she concluded, “Why did Rupert Murdoch risk the humiliation of having his bid completely ignored? Since he is planning to launch a business news channel, he needs to neutralize the Dow Jones contribution to his archrival, CNBC.
“My prediction: Murdoch will walk away from this deal with something. Dow Jones will agree to negotiate with his new channel when their contract with CNBC is up.”
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