UPDATED: Cavuto Interview: Murdoch on the Wall St Journal Deal
“This is a big, generous offer,” said Rupert Murdoch.
Based on Neil Cavuto’s Fox News interview, at this point Murdoch thinks no one else will top his five billion dollar offer for the Journal, though key members of the Bancroft family (which owns the majority of Dow Jones stock) aren’t enthusiastic about Murdoch’s offer. Murdoch also faces union opposition.
People will “pay for quality journalism” –even on the Web, Murdoch said, referring to the fact the OnLine Journal and the Financial Times have successful pay sites. (UPDATE: Jack Welch said the Journal gets half of its revenue from on-line advertising.)
The Wall St Journal has a lot of “confined capital” that can be used if the Journal were part of a “larger organization.”
Cavuto did a fair job of quzzing his boss. Indeed, Murdoch and News Corp. own Fox.
My bet is the Journal will be sold to Murdoch. He’s buying a name brand.
UPDATE: Jack Welch was Cavuto’s next guest. Welch thinks Murdoch will get be able to buy Dow Jones. Welch called the move a “one off deal” and described the Journal as “beach front property.”
UPDATE 2: Newspaper stocks are up today–as I said, name brands are on sale. By the way, the Dow Jones Industrial average hit another all time high.
UPDATE 3: And the AP confrims that the Bancroft family is against the deal. The AP article makes use of the Cavuto interview I liveblogged. Looks like “the rapidly forming consensus view” is that Murdoch’s bid will be rejected. Ah well.
