News Corporation and Dow Jones & Company, Inc

6 Pages Posted: 9 Jun 2009

See all articles by L. J. Bourgeois

L. J. Bourgeois

University of Virginia - Darden School of Business

Paul Hammaker

University of Virginia - Darden School of Business

Divyaksh Kapur

affiliation not provided to SSRN

Michael Mussio

affiliation not provided to SSRN

Abstract

Billionaire Rupert Murdoch, CEO of News Corporation, has purchased the Dow Jones & Company, which includes the Wall Street Journal, from the Bancroft family after many family discussions about the sale. At issue is whether Murchoch, known for his involved and hands-on management style, will impose his will on the editorial personnel and policies of the WSJ and risk destroying the very intellectual capital he has just acquired.

Excerpt

UVA-BP-0534

Nov. 13, 2008

NEWS CORPORATION AND DOW JONES & Company, Inc.

In mid-August 2007, billionaire Rupert Murdoch, chairman and chief executive officer of News Corporation (News Corp), sat at his desk in his New York City corporate headquarters, contemplating the challenges before him. In one of his greatest achievements, he had finalized the details of a merger with one of the longest-standing and most respected media institutions in the United States, Dow Jones & Company, Inc. (DJ). After months of negotiations with the Bancroft family—DJ's majority shareholders—Murdoch was finally sitting in the driver's seat and was ready to decide how to navigate the integration of the $ 5.6 billion DJ into the $ 19 billion News Corp, expanding its subscriber base and marketability while simultaneously retaining DJ's editorial independence.

Dow Jones & Company

DJ was founded in 1882 by three reporters, Charles Dow, Edward Jones, and Charles Bergstresser. The company's flagship publication was the Wall Street Journal (WSJ), which began daily circulation in July 1889. The WSJ quickly became one of the most sought after and respected daily financial publications in the world. In 1903, Clarence Barron, another career newsman, bought DJ for $ 130,000. After Charles Dow's death in 1912, Barron appointed himself president of the company. For the next three decades, under Barron's leadership, the WSJ's daily circulation grew more than eightfold; Barron also expanded DJ's print publications, one of which was the precursor to today's Barron's, a weekly financial magazine. When Barron died, his son-in-law, Hugh Bancroft, became president, and since then the majority of the company has been owned by the Bancroft family.

. . .

Keywords: Postmerger integration, intellectual capital, RBV

Suggested Citation

Bourgeois, L. Jay and Hammaker, Paul and Kapur, Divyaksh and Mussio, Michael, News Corporation and Dow Jones & Company, Inc. Darden Case No. UVA-BP-0534. Available at SSRN: https://ssrn.com/abstract=1416562

L. Jay Bourgeois (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924 -4833 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/bourgeois.htm

Paul Hammaker

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Divyaksh Kapur

affiliation not provided to SSRN

No Address Available

Michael Mussio

affiliation not provided to SSRN

No Address Available

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
48
Abstract Views
661
PlumX Metrics