|
MUMBAI:
After three months that saw many a twist and turn, media czar
Rupert Murdoch has finally added another prized piece to his
ever-expanding media conglomerate News Corp. An agreement
is now signed and sealed for a $ 5 billion takeover of Dow
Jones, publisher of The Wall Street Journal.
News
Corp. and Dow Jones announced that enough members of the Bancroft
family, which owns a controlling stake in Dow Jones, have
agreed to approve the takeover. News Corp. needed about 30
per cent of the Bancrofts' voting power to back the deal in
order to ensure that the company would have enough shareholder
support for the merger.
|
|
| Rupert
Murdoch's Dow Jones acquisition could reshape America's
media landscape. |
Dow Jones' controlling Bancroft family would throw at least
38 per cent of the company's overall voting stock behind the
deal, The Wall Street Journal reported in its online
edition. Murdoch was seeking at least 32 per cent of the Bancrofts'
total of 64 per cent of the voting stock to solidify support
for an overall vote.
The
Bancrofts' Class B shares, coupled with what is expected to
be overwhelming backing from general Class A shareholders,
should be enough to ensure a majority vote in favor of the
transaction. Class B shares are worth 10 times that of Class
A stock in voting matters.
Public
shareholders own 29 per cent of voting shares and are likely
to support the deal. Another seven per cent is controlled
by former Dow Jones board member and executive Jim Ottaway
Jr. and his immediate family, who oppose the deal.
In
the end, the Bancrofts determined that a rough environment
for the newspaper industry proved too tough to let Dow Jones
remain an independent company, not to mention that Murdoch's
offer was 67 per cent above where the stock was trading when
he made it.
Also
Read:
Dow
Jones board endorses News Corp's $5 billion bid
Dow
Jones tentatively agrees to News Corp takeover bid of $5 bn
|
