Murdoch Takes Control, Officially Now
The votes are in, and it seems there will be no need to count any hanging chads.
Shareholders representing more than 60 percent of Dow Jones' voting stock approved the company's acquisition by Rupert Murdoch's News Corp. at a shareholder meeting today. The vote means that the Wall Street Journal and other Dow Jones properties will officially become part of the News Corp. media empire by close of business today.
From all appearances, Murdoch took the reins when the $5 billion deal was consummated on August 1. Murdoch has been outspoken about his plans for the company, including his intention to offer free access to WSJ.com. And last week News Corp. appointed its own Les Hinton to replace outgoing Dow Jones chief executive officer Richard Zannino. Murdoch also named Robert Thomson, editor of the Times of London, as the new publisher of Dow Jones.
Change is already afoot at the Journal, which is Dow Jones' flagship publication. Several key editorial staffers have departed since Dow Jones agreed to the offer, and newsroom buyouts have reportedly been offered. Employees at Marketwatch, Dow Jones newswires, Barron's, and SmartMoney magazine are bracing for change ahead, as Murdoch decides how to integrate them with Fox Business News and other News Corp. properties.
The rest of the business news industry is paying close attention as well. According to a report on Fortune.com, the Financial Times and a Chinese newspaper have refused to run an ad by News Corp. scheduled for tomorrow announcing that "Today the greatest brand in financial journalism joins up with the world's most restless global media company."
The deal closes at a turbulent time for the newspaper industry, as the advertising industry shifts to address readers that are flocking to the web.
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