Zannino could emerge as media industry rainmaker

Greg Farrell of USA Today profiles Dow Jones & Co. CEO Richard Zannino in the wake of the $5 billion News Corp. bid to acquire the company.

Zannino, who has not taken a position on the offer, has been busy overhauling the company.

Farrell wrote, “The restructuring, combined with a strong year for print advertising in the Journal, led to $153 million in income from continuing operations at Dow Jones in 2006, triple the amount from 2005. Also, using an aggressive pricing strategy to attract new subscribers, the Journal increased its paid circulation, a difficult feat in a shrinking industry. Yet, the stock remained mired in the $34 to $38 range for most of the year.

“‘You have to give him credit for aggressively cutting costs,’ says Brian Shipman, analyst at UBS. ‘He came to the company at a very difficult time, and I don’t think he foresaw how difficult things would be.’

“Adds former board member Ottaway, ‘Rich Zannino has done a very good job of speeding up the transition of The Wall Street Journal, Dow Jones News Services and other Dow Jones products into the Internet age.’

“Another reason for Zannino to maintain neutrality on Murdoch’s offer: If it doesn’t come off, he’ll need the board’s support to continue the initiatives he’s already put in place.”

Read more here. Former Journal publisher Karen Elliott House quipped at the end of the story that nothing Zannino has done at Dow Jones has raised the stock price like having breakfast with News Corp. CEO Rupert Murdoch.