Dow Jones, Murdoch nearing pact on WSJ independence: NYT

25 Jun 2007

According to a report in the New York Times, Rupert Murdoch''s News Corp is clost to arriving at an agreement with Dow Jones & Co. Inc on protecting the journalistic independence of the latter''s flagship, The Wall Street Journal, as a pre condition for News Corp''s bid for Dow.

Even if the two sides reach an agreement on editorial integrity, it does not guarantee that the Dow Jones board or the majority shareholders, the Bancroft family, which controls 64 percent of the company''s shares, would approve the arrangement, The New York Times'' online edition reported on Sunday.

The Wall Street Journal said News Corp.''s offer seeks to reduce the Bancroft family''s involvement in the editorial protection system and Dow Jones was working on a counter-proposal.

Last week, Dow Jones said its board would take over the negotiations related to the $5- billion takeover offer from News Corp.

According to the The Wall Street Journal merger negotiations picked up momentum over the weekend, even though they were close to walking away due to tense discussions over editorial independence.

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