This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Happy Returns for Dow Jones Insiders

It's the sort of story you'd expect to read about in The Wall Street Journal: 23 people making a $360 million profit in just a few seconds.

The kicker, in this case, is that those people are the directors and officers of Dow Jones (DJ), the parent company of that financial newspaper, and in some select cases, accepting the bid could deliver a nice boon to former execs who hold options that lie deep underwater.

Rupert Murdoch and News Corp.'s (NWS - Get Report) extraordinary $5 billion offer for the legendary newspaper company yesterday probably shouldn't come as a surprise to those who have followed the aging press tycoon's career. For years he has sung the praises of the Journal and urged it to become a right-of-center mainstream alternative to The New York Times.

What must make this especially tempting is that it came out of the blue. Until Murdoch slapped his offer on the table yesterday morning, Dow Jones' stock, like that of other traditional newspaper companies, had been in steady decline for five years.

Tuesday Dow Jones said the Bancroft family, which owns the controlling interest in the company through its special voting shares, would vote against the bid .

But the idea of selling out must have been very, very tempting. Just consider what the $60 per share bid is worth to the Bancroft family and the board of directors.

According to Dow Jones public filings, the Bancrofts, including related family trusts, own 20.6 million shares. They hold just over 4 million common stock and 16.5 million voting B shares. On Monday afternoon, the family's stake was worth just $742 million. Under Murdoch's offer that rises to $1.2 billion, a gain of almost $500 million in a few moments. There will continue to be protestations about the sanctity of the Journal's independence, but $500 million can soothe some ruffled principles.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AXP $71.85 0.22%
CPB $53.10 1.10%
NWS $14.37 -1.58%
AAPL $117.81 -0.19%
FB $105.45 0.04%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs