Murdoch's Bid for Dow Jones Dominates Newspaper Conference
Rupert Murdoch's bid for Dow Jones -- which ownsThe Wall Street Journal -- has become the talk of the news industry. On "Power Lunch," CNBC's Rebecca Jarvis reported from the Newspaper Association of America meeting in New York, where publishers are taking sides on what News Corp.'s $5 billion offer might mean for the market -- and for the U.S. as a whole.
Jarvis noted that a raft of industry developments were discussed at the association's meeting, a "State of the Union for the industry." She pointed to print readers' migration to the Internet as well as the massive mergers and acquisitions occuring over the past year, involving billionaires like Sam Zell, Ron Burkle -- and, of course, Murdoch.
Questions of shareholder value, revered traditions and journalistic ideals were traded as Murdoch attempts to convince investors and directors that the Bancroft family, which controls some 64% of Dow Jones' voting shares, is wrong to oppose News Corp.'s bid.
New York City Mayor (and media billionaire) Michael Bloomberg addressed the association gathering, taking a dig at one of Murdoch's racy tabloids: "Over at the New York Post, they just doubled the newsstand price to 50 cents -- which must be Rupert's secret plan on how to raise $5 billion to buy The Wall Street Journal," Bloomberg joked.