MySpace Founder Makes An Offer for Dow Jones; Board Takes Over Negotiations

The entire process to buy Dow Jones (DJ) has been strange one.  In fact, it has been more than strange and just got even stranger.  The reports are that the board of directors is taking over the buyout negotiations from the controlling Bankcroft family.  The founder of MySpace’s parent Intermix Media, Brad Greenspan, has apparently made a rival $60.00 offer yesterday for the Dow Jones (DJ) company.

News Corp. bought MySpace via the Intermix acquisition in a deal that was a head scratcher at first that become one of the best Internet buys ever.  Interestingly enough, Greenspan had sued (and lost) News Corp. after the buyout over censorship and anti-competitive behavior. 

In a statement out of the company, the Board of Directors and representatives of the Bancroft family will conduct further discussions with News Corp. relating to the proposal and will oversee the exploration of strategic alternatives. Representatives of the Bancroft family, which owns shares representing a majority of the Company’s voting power, reiterated that any transaction must include appropriate provisions with respect to journalistic and editorial independence and integrity. Any acquisition will require the approval of the Board of Directors and shareholders owning a majority of the Company’s voting power.

Shares of Dow Jones closed up 3.2% on the day at $60.65.

Jon C. Ogg
June 20, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in any of the companies he covers.