GE and Microsoft studied Dow Jones bid

Steve Lohr of the New York Times writes Monday that General Electric Co.’s NBC examined bidding for Dow Jones & Co., the parent of The Wall Street Journal, with Microsoft, but backed away.

Lohr wrote, “Representatives from NBC and Microsoft talked to advisers to the Bancroft family, which controls Dow Jones. But after the preliminary discussions and a more detailed analysis by NBC and Microsoft executives, they decided against going further. ‘Mainly, the economics just didn’t make sense,’ said the person, who had not been authorized to speak for companies.

“NBC initiated the overture after the Bancroft family announced on May 31 that it would meet with Mr. Murdoch and opened the door to counteroffers to the bid from Mr. Murdoch’s News Corporation.

“NBC decided to explore a bid after being contacted by investment bankers on behalf the Bancroft family. Both the Bancrofts and Dow Jones have hired investment bankers that have been pursuing potential bidders since the News Corporation offer to buy Dow Jones for $60 a share was disclosed in early May. NBC then contacted Microsoft about the possibility of a joint move.”

Read more here.