Rupert Murdoch: 58 Days Later...
By Ian Cooper
Dear American Capitalist Reader,
Fifty-eight days and counting… That’s how long it’s been since Murdoch offered his $60 bid to Dow Jones. And it could all end with Murdoch walking away over the next three weeks. Not only is the billionaire investor not raising his $60 bid for Dow Jones, he just announced that he’s expecting approval from the Bancrofts within two to three weeks, “if at all,” say news reports.
“If at all” could very well be a precursor to Murdoch’s decision to just walk away. And if that happens, don’t be shocked when Dow Jones’ shares plummet to the pre-Murdoch offer price.
To this day, 58 days later, there are still no guarantees that the Bancroft family, which owns 64% of DJ votes, will agree to the terms when presented by negotiators. Despite reports on preliminary agreements, there is no done deal. The Bancroft negotiators must still present the terms of the deal to the family, along with a firm price. Says The Wall Street Journal, Dow Jones is “expected to seek an increase over the $5 billion, or $60 a share, offer that News Corp. first made in April.”
The latter is already a “no go” as Murdoch isn’t likely to budge. And should Murdoch fail to satisfy quality and independence issues, don’t hold your breath for a deal. Elongating the Murdoch-Dow Jones “torture fest” even more, the Journal is reporting that, “some members who initially opposed the deal switched their votes, and others have gone in the opposite direction.” One of those opposed to the deal is Leslie Hill. To date, say reports, it’s still unclear if she’ll try and block the sale.
Someone stop the ride. I want to get off…
Take Care,
Ian L. Cooper
American Capitalist
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