Murdoch wins fight for Dow Jones

The WSJ: Required reading for the US business and political elites

Media tycoon Rupert Murdoch has won his battle to buy US media giant Dow Jones, publisher of the Wall Street Journal.

• Dow Jones
  
• News Corp
• Murdoch's portfolio
• How the deal was done (from the New York Times)
  

His News Corporation firm has secured the deal for $5.6bn (£2.7bn), or $60 a share - a 65% premium to Dow's share price before the bid was announced.

The agreement comes after Mr Murdoch received the required level of support from the Bancroft family, who hold the majority of Dow Jones' shares.

It ends the Bancrofts' 100-year stewardship of the Dow Jones.

The offer was approved by members of the Bancroft family who collectively owned 37% of Dow Jones' voting stock.

Given the Bancrofts' long and distinguished history as custodians of Dow Jones, we appreciate how difficult this decision was Rupert Murdoch, News Corporation

The Bancroft family controlled 64% of the shares of Dow Jones, but only about half of them needed to support Mr Murdoch's bid for it to succeed.

'Deeply gratified'

"I am deeply gratified at the level of support we have received from the Bancroft family and its trustees," said Mr Murdoch.

"Given the Bancrofts' long and distinguished history as custodians of Dow Jones, we appreciate how difficult this decision was for some family members."

Richard F. Zannino, Dow Jones chief executive, said: "The transaction will deliver significant returns to our shareholders.

"It will also build on our recent, industry-leading earnings growth and make our company and journalism even stronger.

The Bancrofts had been deeply divided over whether to sell the Dow Jones, which includes the flagship business newspaper Wall Street Journal (WSJ).

They were concerned that Mr Murdoch's aggressive management style would interfere with the editorial integrity of the newspaper.

Under the terms of the deal, a five-member special committee will be established to assure the journalistic and editorial integrity and independence of Dow Jones' publications and services, including the WSJ.

News Corporation already owns 100 other newspapers worldwide, as well as television stations and film studios and the purchase of the Dow Jones will add to his growing media empire.