Tuesday, July 31, 2007

REACTIONS TO DOW JONES DEAL

Wall Street, media analysts and others weigh in on the news that a deal for Dow Jones looks imminent. What do you think? Discuss.

"IAPE is disappointed with the apparent decision by key Bancroft family members to support the sale of Dow Jones & Company to News Corp."
-- Steve Yount, president of the Independent Association of Publishers' Employees, which represents more than 2,000 Dow Jones employees

"We believe that the potential for economic value expansion at Dow Jones as a component of News Corp. exceeds its value as a standalone entity. Ultimately, this rationale, combined with News Corp.'s editorial independence commitments, should sway support for the acquisition, in our view."

--UBS analysts Michael C. Morris, Matthieu Coppet and Thomas Cubeta, in a research note released earlier Tuesday

"What will The Journal be like with Mr. Murdoch at the helm? The suggestion that Mr. Murdoch, an inveterate tabloid newsman, will be immediately insisting on headlines like 'Hedge-Less Funds in a Stop-Loss Market' misses the point. Sure, he can't wait to get his hands on his trophy, but my guess is he will be more interested in ledgers than ledes."

--David Carr, New York Times media columnist

"For Mr. Murdoch, the deal represents a defining moment in his career. Having made his fortune with salacious tabloids and screaming headlines, he will now take possession of one of the world's most prestigious media franchises. He managed to do so with a combination of patience, timing and shrewd calculation -- not to mention a knock-out price."

--Joshua Chafin, Financial Times

"In view of the higher probability that offer will be approved by Dow Jones board once the final Bancroft votes are tallied we are changing our rating on Dow Jones shares to 'hold.'"

-- Edward J. Atorino, analyst for the Benchmark Company, earlier Tuesday

"The Murdoch victory becomes a signal event in American journalism... The acquisition is a warning shot: Standalone newspaper companies must answer the question: What happens when they come for us?"

--Ken Doctor, media analyst, Content Bridges

"Family finally comes around."

--Wachovia analysts John Janedis, Jaime Neuman and Brendan Metrano, in a research note earlier Tuesday

"With less and less hard news being covered by the corporate media, newspapers like the Journal hold a powerful place in American society, helping to shape the national news agenda. Murdoch's influence over editorial policy at the Journal will have profound effects on what we see and hear on the news. Those concerned about the journalistic independence and editorial integrity at the Journal have good reason to be worried."

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