Longshot Dow Jones Bidder Outlines New Plan

In his unlikely bid to thwart Rupert Murdoch's $5 billion buyout offer for Dow Jones (DJ), Internet entrepreneur Brad Greenspan announced a revised plan on Friday to offer the Bancroft family an alternative that he says could push the publisher's stock price above $100.

"For too long, Dow Jones has limited its focus to the world of print media and allowed other, less established entities to generate millions of dollars in profits by developing financial reporting franchises on the Internet and cable television," said Greenspan, who touts himself as a co-founder of the social networking site MySpace.com, in an open letter to Dow Jones shareholders. "The time has come for Dow Jones to break out of its slumber and extend its dominance into the lucrative arena of digital media."

To counter Murdoch's offer, Greenspan said his investment group will spend $400 million to $600 million as a "loan" to members of the Bancroft family, Dow Jones' controlling shareholders, who want to cash out of their stake at $60 a share -- the price being offered by News Corp. (NWS).

In return, his group would claim the rights to any value created in the shares that are purchased over and above the $60-mark. Also, his group would claim two seats on the Wall Street Journal publisher's board to oversee a new business strategy.

Greenspan said he would also seek a recapitalization plan that would use debt financing to repurchase up to 50% of the company's shares outstanding at $60 a share.