Matthew Karntischnig, Sarah Ellison, Susan Pulliam and Susan Warren write in the Saturday Wall Street Journal that there were four factors that convinced the Bancroft family, the majority owners of Dow Jones & Co., to talk to News Corp. CEO Rupert Murdoch about selling the owner of the Journal.
They wrote, “Mr. Elefante, a partner at a law firm that had represented the family for decades, told the group that for Dow Jones to remain competitive, he now believed the family needed to explore a sale to Mr. Murdoch or another bidder, according to people familiar with the presentation.
“A look inside the family’s deliberation shows four crucial factors laid the groundwork for the Bancrofts’ dramatic change of position. One was the shift by Mr. Elefante, a Boston lawyer who oversees the family’s trusts. A rift in the 34-member family widened as an increasingly noisy wing, especially those in the younger generation, agitated for Mr. Murdoch’s offer to be considered. In a presentation to the board weeks earlier about the deal’s pros and cons, Dow Jones Chief Executive Richard Zannino had starkly laid out to the family the downside of shutting the door. Finally, competition was getting fiercer than ever, with business-information providers Reuters Group PLC and Thomson Corp. announcing merger plans. All this made it harder for the family to resist the rich premium of Mr. Murdoch’s offer.”
Read more here. The story has some great detail about how Murdoch’s camp has been laying the groundwork for the offer and how the Bancrofts came to change their mind.
CNBC Digital is looking for an experienced editor to work with the Senior Editor helping…
Unionized journalists at Law360 say Teresa Harmon, vice president of legal news at LexisNexis, has…
The WERT Global Prize honors excellence in business journalism by a woman for work that…
Global regulatory risk newswire MLex is looking for a UK IP Correspondent for its London…
Global regulatory risk newswire MLex is looking for an AI Correspondent for its London bureau.…
Global regulatory risk newswire MLex is looking for a Senior IP Correspondent for its Brussels…