Dow Jones Plays Hard to Get

"This shouldn't have an impact on other general newspaper stocks," says Doctor. "Beyond whatever ego is involved here, the Journal is a business niche publication with a very different audience than a general news publication. Dow Jones has reorganized itself in a way that makes sense to grab hold of a digital future, and Murdoch probably thinks he can leverage its assets for both broadcast and digital purposes in News Corp.'s portfolio in a way that makes the company way undervalued here."

Still, newspaper stocks jumped Tuesday. Shares of New York Times added $1.18, or 5%, to $24.58, while Washington Post climbed $21, or 2.8%, to $765. McClatchy (MNI Quote) jumped 93 cents, or 3.2%, to $29.83, and Gannett (GCI Quote) rose $1.27, or 2.2%, to $58.33.

For its part, News Corp. fell 82 cents, or 3.4%, to $23.18. Dow Jones earlier said it was in the process of evaluating the bid.

"There can be no assurance that this evaluation will lead to any transaction," the company said.