Reuters joins Dow Jones as takeover target
KAI RYSSDAL: What a week it’s been for the business of business news. We learned Monday the Australian press baron Rupert Murdoch wants to buy Dow Jones. That’s the parent of the Wall Street Journal. Murdoch’s willing to pay a pretty penny for it, too — $5 billion — which has so far been greeted with a collective yawn from the family that controls Dow Jones.
And today the news and financial information service Reuters, of which we’re a client, confirmed it’s the subject of a takeover bid. The Canadian data-broker Thomson’s the suitor there.
Marketplace’s Lisa Napoli explains why news is so hot right now.
LISA NAPOLLI: Newspapers have been taking a beating. But Andrew Schwartzman of the Media Access Project says news itself has never been more in demand:
ANDREW SCHWARTZMAN: The news business is not faltering. The news business is exploding.
In this age of electronic trading and split second decisions, that’s particularly true of financial news services like Reuters.
Joe Strupp is with the media trade Editor and Publisher.
JOE STRUPP: Through the Web and globalization of economic news and economic dealings, there’s more of that kind of coverage being sought.
Which is what makes Dow Jones and its Wall Street Journal so alluring to Rupert Murdoch. A man who’s also planning to launch his very own business news channel.
Some Dow Jones employees doubt whether Murdoch will be as good for them as he believes they would be for him. But he’s trying to persuade them.
Steve Yount is with the union that represents Wall Street Journal employees:
STEVE YOUNT: He said, “You know, I really like this newspaper. The stories are too long, and I can’t finish them all, and I’d like to change this and I’d like to change that. In other words, he doesn’t like the newspaper.
Yount says he’s worried that all Murdoch really wants is the famous Dow Jones brands. Most people who analyze the media say that at its core, the brands are what makes the property worth the $5 billion that Murdock is offering.
In Los Angeles, I’m Lisa Napoli for Marketplace.
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