56 | FORBES ASIA NOVEMBER 2016
SAM KAPLAN FOR FORBESBY STEVE SCHAEFERPaper Chase
NEWS CORP.’S Rupert
Murdoch was an established
titan of global media (and
a longtime member of The
Forbes 400) in 2007, when
he set his acquisitive gaze
on the Wall Street Journal
and its parent, Dow Jones
& Co. He had reportedly
coveted the paper for more
than two decades, and his
$60-per-share bid valued
Dow Jones at $5.6 billion,
ofering a 67% premium for
an empire under siege as the
media industry convulsed.
The Bancroft family’s
control of the 108-year-old
paper—and a fierce debate
over the value of journalism
versus the pursuit of profit—
were heady obstacles.ALL THE NEWS THAT FITS
For the bankers and lawyers
managing the sale, the challenge
of keeping discussions about a
multibillion-dollar media business
confidential proved insurmount-
able, as squabbling Journal
family members and loose-lipped
advisors gave the press a steady
stream of juicy headlines.FAMILY MATTERS
The Bancroft clan, which
owned the Journal for
more than a century
and controlled the sale
thanks to special voting
stock, was far from
united. Rifts opened
between journalism
idealists and those more
focused on cashing in,
giving Murdoch gaps to
exploit. Ultimately, just
over half of the family’s
64.2% voting stake
was cast in favor of the
acquisition.TRADING PLACES
Murdoch wasted little
time putting his stamp
on the Journal, swiftly
replacing managing edi-
tor Marcus Brauchli with
handpicked publisher
Robert Thomson, pay-
ing only lip service to a
promise that an editorial-
independence committee
at the paper (created
largely as a sop to some
of the more high-minded
Bancroft heirs) would
have a say in such mat-
ters. Today Thomson is
CEO of the new News
Corp., which was split of
from Murdoch’s broadcast
assets—now called 21st
Century Fox—in 2013.THE MORE, THE MERRIER
Because of Dow Jones’ family-controlled ownership structure,
many constituencies had a say in the sale. That meant half
of Wall Street, more or less, ended up advising either the
company, the Bancrofts, board members or Murdoch. In the end
Goldman Sachs, Merrill Lynch, JPMorgan, Allen & Co., Centerview
Partners and at least five law firms collected fees on the deal.FORBES ASIADEAL TOY