Dow Jones Backs News Bid - TheStreet

Dow Jones Backs News Bid

Murdoch's offer now goes to the Bancroft family.
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Dow Jones (DJ) said its board approved a $5 billion buyout by Rupert Murdoch's News Corp. (NWS) - Get Report.

The deal must now be approved by the Bancroft family that controls the New York-based publisher of

The Wall Street Journal

through supervoting Class B shares. The

Journal

has reported in recent days that some members of the family remain opposed to a deal, though others reportedly see a deal as the company's best route in a tough business environment.

"News Corporation has indicated that its board of directors would be prepared to authorize News Corporation to enter into a merger agreement with Dow Jones on the terms outlined if members of the Bancroft Family and the trustees of trusts for their benefit holding Dow Jones shares with a level of voting power satisfactory to News Corporation indicate promptly their willingness to support a transaction with News Corporation by entering into voting agreements," read a Dow Jones statement Wednesday morning.

The board approval comes nearly three months after Murdoch approached Dow Jones with the $60-a-share deal and about a month after the board, worrying about foot-dragging on the part of the Bancrofts, took over talks.