Buffett Says Last Chapter Of Dow Jones Bid Has Not Been Written
Warren Buffett said on Sunday it is possible that the $5 billion takeover bid by Rupert Murdoch's News Corp.
In a press conference, Buffett said newspaper companies have "A" and "B" values, with the former measuring the cash they can generate, and the latter involving factors including "power (and) ego" that can accompany purchases of specific companies. Dow Jones, he said, has a high "B" value because of the Journal's reputation and broad international reach.
"I think Rupert would even acknowledge that some part of his interest in the Wall Street Journal goes beyond economics," said Buffett, who runs Berkshire Hathaway.
"The question is, who will add the most for the B value," he added. "The B value for Dow Jones is huge. It's going to be a factor with Rupert. It's going to be a factor for any other bidder who emerges .... The last chapter has not necessarily been written on that."
News Corp. has offered $60 a share for Dow Jones. At the moment, Dow Jones's controlling shareholder, the Bancroft family, has rejected the offer.