Dow Jones has agreed to a takeover by News Corporation in a deal worth approximately $5.6 billion (£2.8 billion).
About 37% of the Bancroft family, who control 64% of Dow Jones voting stock, agreed to the News Corp offer of $60 per share.
Murdoch, chairman and CEO of News Corp, said: “I am deeply gratified at the level of support we have received from the Bancroft family and its trustees. Given the Bancrofts’ long and distinguished history as custodians of Dow Jones, we appreciate how difficult this decision was for some family members. I want to offer the Bancrofts my thanks, and an assurance that our company and my family will be equally strong custodians.”
Richard Zannino, chief executive officer of Dow Jones, said: “News Corporation’s proposal reflects the vitality and uniqueness of Dow Jones and its world-class journalism, brands, businesses and people. 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 as our strengths are leveraged across News Corporation’s powerful global distribution and marketing platforms for the benefit of our readers and other customers. On behalf of all of my colleagues at Dow Jones, I would like to express our deepest gratitude to the Bancroft family for their years of steadfast support for the journalistic excellence of Dow Jones. We look forward to continuing their legacy.”
As part of the deal, both companies have agreed to create a five-member special committee to safeguard the Wall Street Journal‘s editorial independence, with the initial members to be Louis Boccardi, Thomas Bray, Jennifer Dunn, Jack Fuller and Nicholas Negroponte.
M Peter McPherson, chairman of the board of Dow Jones, said: “Having thoroughly reviewed News Corporation’s proposal, the Dow Jones Board has overwhelmingly voted to approve the definitive merger agreement. This decision has been difficult and emotional for a great many people because of the long history of this great institution.
“The board has concluded, with a great deal of family support, that the proposal provides outstanding financial value and provides excellent opportunities to the extraordinary Dow Jones franchise. Also, we wish to thank the Bancroft family for their years of faithful stewardship. The editorial independence agreement proposed by the Bancroft family is a strong agreement about which all can be pleased.”
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