Rupert Murdoch's News Corp. offered to buy Dow Jones for $5 billion, but the deal, which would add The Wall Street Journal to Murdoch's global media empire, faces doubtful prospects since Dow Jones' controlling shareholders said they would vote against it, an Associated Press report said.
The Associated Press report said clinching ownership of The Wall Street Journal would mark a huge coup for the 76-year old media mogul, landing Murdoch the most authoritative voice in the world of business journalism as well as key know-how and personnel as News Corp. gears up to launch a business-oriented cable news channel to rival CNBC, which first broke news of the proposal earlier Tuesday.
The report added that the offer of $60 per share represents a huge premium of about 65% over Dow Jones' closing share price.
However, Dow Jones said that the Bancroft family, the company's controlling shareholders, said they would vote shares representing just over 50% of the company's voting power against the deal.
That leaves Murdoch with the option of making a sweeter offer, or it could open the door to other potential bidders, the Associated Press report said.