Categories: OLD Media Moves

Why the Dow Jones/News Corp. deal is actually rocky

Lisa Snedeker of Media Life magazine writes Friday afternoon that despite what appears to be a dealÂ allowing News Corp.Â to buyÂ Dow Jones & Co., the parent of The Wall Street Journal,Â coming closer to reality, it actually is tenuous.

Snedeker wrote, “For any deal to work, it must arise from a sense of shared interest, such that when the deal’s done both parties can move forward. They have to present a united front, and for several reasons. They need protect the value of the stock, which means putting on a good face for Wall Street, but they also need to stem the flight of talent from the paper that would result from a messy deal.

“They need a deal that brings about stability.

“But this deal still has lots of problems, and not the least is a workforce, led by the Journal editorial staff, that’s dead set against it.

“Among the issues is a ongoing dispute over their contract. Union members are going to want a new contract before any sale, knowing full well that a new owner would be inclined to demand salary cuts. The union has also been seeking out other potential buyers, including supermarket magnate Ron Burkle and investor Warren Buffett, among others.”

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.

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John R says:
June 30, 2007 at 5:58 am
I think Leslie Hill will find it difficult to find a really serious competitors to Murdoch.
The Bancrofts are playing their cards well --and eventually will relent to NC's huge offer.
The "independent editorial panel" is really a positive step forward. Hopefully that would secure the editorial integrity when the journal changes hands.