Jim Cramer's Stop Trading! Dow Jones Deal

05/01/07 - 02:56 PM EDT

TheStreet.com Staff

Dow Jones (DJ Quote - Cramer on DJ - Stock Picks) will be sold this time around, Jim Cramer said Tuesday on CNBC's "Stop Trading!" segment.

Cramer said a deal will happen, regardless of whether the buyer is Rupert Murdoch's News Corp. (NWS Quote - Cramer on NWS - Stock Picks) or someone else, because the "two obstructionists" who had previously blocked a Dow Jones buyout have now retired.

Cramer named the anti-deal faction as former board member Roy Hammer, who retired in 2005, and ex-CEO Peter Kann, whose run as chairman ended last month. Cramer said their departure leaves a board and management that isn't openly opposed to a sale. That's a switch since 1996, when Murdoch tried to buy Dow Jones for $73 a share but was turned back, Cramer said.

Cramer said Dow Jones probably would prefer a sale to Washington Post (WPO Quote - Cramer on WPO - Stock Picks) and might get bids from rivals such as New York Times (NYT Quote - Cramer on NYT - Stock Picks), Gannett (GCI Quote - Cramer on GCI - Stock Picks) or closely held Bloomberg. He even said Microsoft (MSFT Quote - Cramer on MSFT - Stock Picks) could be a buyer.

Cramer said price doesn't appear to be an issue, with Murdoch's bid at $60 a share and the stock up 57% at $57. But he noted that Murdoch "has always loved" The Wall Street Journal and "has a lot more firepower" if a higher price is necessary.

Cramer said the Dow Jones Industrial Average is up Tuesday because industrial names like Honeywell (HON Quote - Cramer on HON - Stock Picks) are getting "revalued" off strong earnings as big institutions try to complete big positions. Cramer said he didn't like the "excuses" he heard out of P&G (PG Quote - Cramer on PG - Stock Picks), though.

At the time of publication, Cramer had no position in stocks mentioned.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. Click here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click here to order his book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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