Dow Jones Hopes for a Pink Knight Fade
Dow Jones' hopes for a merger with the FT and CNBC were dashed earlier today as the FT reports that parent companies Pearson and General Electric have ruled out a joint bid.
That news may relieve some Dow Jones employees, who, while happy about the journalistic integrity such a deal might bring, were concerned about the likely downsizing that would come with the integration. The choice between Murdoch and Pearson was described in today's NY TImes as "trash or slash", neither sounding very appealing.
According to reports, Pearson CEO Marjorie Scardino sent an email to staff indicating that they had “kicked around some ideas about what a combination of CNBC, the FT Group and Dow Jones might look like”, but “we didn’t see that combination stacking up for our shareholders.”
Both CNBC and the FT have a lot at risk should Murdoch succeed in acquiring Dow Jones. While the joint deal may be history, I wouldn't be surprised to see either company taking another run at Dow Jones with another partner.
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