Categories: OLD Media Moves

Financial Times parent seeks partners to make Dow Jones bid

The parent company of The Financial Times is looking for partners to make a bid for Dow Jones & Co., the parent of The Wall Street Journal, according to a story by Dennis Berman and Sarah Ellison on The Journal’s web site.

They wrote, “On paper, at least, Pearson and Dow Jones appear a viable combination, with the two complementing each other geographically. The Financial Times is strong in Europe and less so in the U.S.; The Wall Street Journal, meanwhile, is America’s leading business publication by circulation, with a smaller presence overseas. One advantage of a Pearson-Dow Jones combination could be substantial cost-savings for the two companies.

“Indeed, about three years ago, Dow Jones and Pearson had extensive discussions about a joint-operating agreement to combine the two publications’ operations in Europe and Asia, according to two people familiar with the matter. These talks eventually broke down.

“The question for Pearson is just how to fund a deal to rival News Corp.’s $60-a-share proposal. While the London-based Pearson sits on a $13.6 billion market capitalization, News Corp.’s offer values Dow Jones at about 40 times the company’s 2007 earnings. Anticipated earnings at Pearson, which also publishes educational textbooks, and the Penguin book imprint, are valued at less than half that figure. That suggests a highly-dilutive acquisition that would weigh on Pearson’s shares.”

Read more here.

Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.

View Comments

  • I am not sure Pearson could really rival the News Corp bid. I also have doubt if they would seriously enter the ring. It might just be a corporate ploy to judge how determined Mr Murdoch is on his bid.
    At least -it seems so at this stage.

Recent Posts

Dow Jones reports slight increases in revenue, earnings

Dow Jones & Co., the parent of The Wall Street Journal, MarketWatch.com, Barron's and Investor's…

23 mins ago

The Independent hires Baragona as senior reporter

The Independent has hired Justin Baragona as a senior reporter. He will be covering the intersection of…

3 hours ago

Econ Reporting Hardship Program sets up Ledbetter Fund

Author and editor James Ledbetter was a beloved friend, Economic Hardship Reporting Project Board member…

3 hours ago

FT names Brower US news editor, Edgecliffe-Johnson departing

Financial Times editor in chief Roula Khalaf sent out the following on Friday: Hello everyone I'm pleased…

3 hours ago

WSJ’s Brown is leaving publication

Ken Brown of The Wall Street Journal is leaving the news organization. He is an…

1 day ago

Jones will not seek another Dow Jones News Fund board term

Dow Jones News Fund President Brent W. Jones announced at the nonprofit journalism training organization’s…

1 day ago