Dow Jones Buys Remainder of Factiva from Reuters
Dow Jones has announced that it has purchased the remaining 50% ownership of Factiva from Reuters for $160M. The purchase price reflects a value of slight more than 1x 2006 estimated revenue of $290M, an increase of just 3% over 2005. According to Dow Jones CEO Rich Zannino, the acquisition will shift Dow Jones revenue mix by dropping the print segment from 70% to 60%.
Clare Hart, who led much of Factiva's growth through the years and now heads the Dow Jones Enterprise Group, will now have oversight of the entire Factiva business.
Joint ventures, by definition, are difficult to build and manage. Getting two companies with frequently conflicting goals and cultures to agree on anything is a challenge. Putting Factiva solely under the Dow Jones umbrella should make it easier for them to reinvigorate Factiva's growth.
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