Sarah Ellison of The Wall Street Journal reports that Dow Jones & Co., the Journal’s parent, has delivered a proposal to News Corp. that would safeguard the editorial independence of the newspaper if the company is acquired.
Ellison wrote, “The proposal calls for a Special Committee on Editorial and Journalistic Independence and Integrity, which would consist of seven members: two from the family, two from News Corp. and three independent individuals. The three independent members of the board would be chosen by the family, but approved by News Corp., according to a draft of the proposal. The proposal also would limit News Corp.’s ability to control the use of The Wall Street Journal brand.
“News Corp. officials believed the makeup of the board and other aspects of the document would give too much control to the family in the event of a deal, according to people familiar with their thinking.
“A meeting between the two sides hasn’t been set, according to a person familiar with the matter. The proposal that was sent to News Corp. was nearly identical to one the family handed over to the board Wednesday, according to another person familiar with the matter. The proposal also reflected the views of some senior Dow Jones editors, this person said.”
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