Murdoch's Love-Letter Math Doesn't Add Up

(Editor's note: To access some of these stories, registration or a subscription may be required. Please check the individual links for the site's policy.)

One of the top 10 founding principles of Business Press Maven thought is that journalists are by nature and nurture focused on language, but their use of even rudimentary numbers is often inadequate.

A second founding principle is that a company's hometown news outlet offers either the best or worst coverage. Hometown journalists frequently develop the best sources, with mixed results. Either these relationships turn too cozy, as critical thought falls by the wayside, turning coverage too positive, or these relationships lead to textured coverage and scoops.

Savvy investors must always read the hometown publications of their investments -- or of companies where something might be afoot -- careful to separate the very good from the very bad.

Without further delay, let's look at how these two founding principles played out in recent days.

Principle 1: Trouble With Numbers

Coverage was widespread about Rupert Murdoch's attempted love letter to the Bancroft family. In his quest to court Dow(n) Jones (DJ Quote), Murdoch has to convince enough members of the family to vote for his $5 billion offer, which he does not seem too interested in raising. So, can the nonfinancial goodies that he offers sway enough Bancrofts to vote for the $5 billion? If so, the deal goes through. If not, it probably collapses.

Central to answering this either/or question was this widely covered letter. Perhaps the main feature of the letter was Murdoch's promise to give the Bancrofts a seat on News Corp.'s (NWS Quote) board. Well, what's an investor to think after reading this coverage? Did the offer of a board seat help or hurt Murdoch's chances of peeling off some Bancrofts?