Reuters (NASDAQ: RTRSY) says that it has been approached with a takeover bid. Its shares are up 30% on the news in London.
With Dow Jones (NYSE: DJ) currently in play after a 67% premium bid from News Corp (NYSE: NWS), perhaps no one should be surprised. It appears that financial news content is getting new respect and a higher valuation than the market has given it over the last several years.
Unlike Dow Jones, where the total value of the transaction would be $5 billion, Reuters already has a market cap of over $12 billion, so a deal would probably be north of the $15 billion mark.
Reuters has one of the world's largest news services and and competes with Bloomberg in the trading terminal business. Last year, the company's revenues were over $5 billion.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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