Categories: OLD Media Moves

Dow Jones indexes might fetch $600 million

Chris Nolter of TheDeal.com writes Monday that Dow Jones might get as much as $600 million by selling its index business, which includes the Dow Jones industrial average.

Nolter writes, “With reports that the business is on the block, Wells Fargo Securities LLC analyst John Janedis suggests the Dow Jones Indexes are worth $600 million to $650 million in a Monday note. He bases the valuation on estimates of $55 million in operating income for the 12 months ending June 2009 and $60 million to $65 million in Ebitda during the period.

“The Dow Jones Indexes business is part of News Corp.’s Enterprise Media Group.

“Dow Jones began licensing its Dow Jones Industrial Averages and other indexes in 1997. The unit has more than 130,000 indexes and sells or licenses the data associated with the financial gauges. Competitors include New York indexing and analysis firm MSCI Inc., McGraw Hill Cos.’ Standard & Poor’s unit and FTSE Group, which is co-owned by the London Stock Exchange Group plc and Pearsons plc’s the Financial Times.

“‘Given the high margins, what we view as a business that had significant opportunity going forward, and a significant contributor to Dow Jones’ cash flow, we’re somewhat surprised at the timing,’ Janedis wrote.”

Read more here.

Recent Posts

Miao to cover China economy for WSJ

Wall Street Journal reporter Hannah Miao is moving to Singapore to cover the China economy.…

16 mins ago

FT taps Foy to cover European banking

Financial Times reporter Simon Foy is now covering European banks. He has been covering accounting for the…

4 hours ago

Debtwire seeks a private credit reporter

Debtwire, the leading provider of global fixed income news, analysis and data for more than…

7 hours ago

BNN Bloomberg anchor Kanwar is departing

Amber Kanwar, an anchor for BNN Bloomberg in Canada, is departing at the end of…

7 hours ago

Moody’s promotes Kantrow to editor in chief

Moody's Ratings has promoted Yvette Kantrow to senior vice president and editor in chief. She has been…

7 hours ago

Politico reporter Fieseler departs

Politico reporter Clare Fieseler is leaving the news organization to take on some ocean reporting projects. She…

7 hours ago