Whatever you think of Rupert Murdoch's approach to news, he sure knows how to create it. Now, speculation that Google (NASDAQ: GOOG) might share his interest in Dow Jones will drive the story for at least another news cycle.While the press speculates about Warren Buffet's Berkshire Hathaway (NYSE: BRK.A) or General Electric (NYSE: GE) as possible competitors for Dow Jones & Co. (NYSE:DJ), the outside-the-box suggestion comes via Bloomberg.com on Wednesday, when they quoted the acting director of Allegiant Asset Management as speculating that Google might be among the suitors for the company. The same article quotes another fund manager's suggestion that the sale, should it occur, might reach $100 a share.
It has become de rigueur to drop the "G" word into the discussion of any large sale in the media market because they have the war chest to ante up in any game they choose. However, to date no one at Google has suggested any such interest in Dow Jones.
Is there reason to think such an acquisition would be of interest to Google? How might Dow Jones fit into the Google empire? Much like earlier rumors of their interest in NBC Universal, should GE decide to spin that business off, DJ would represent a significant move by Google into content development.
Unlike Murdoch, who could theoretically slash the company's operating costs and build market by integrating the Wall Street Journal operatons into his print empire and Fox Network financial programming, Google has little that seems to dovetail with DJ. They don't do print media. They don't do broadcasting, either television or radio. Although they do have YouTube. Might they envision a Wall Street Journal network? Hmmmm.
What we know Google does, though, is internet, and Dow Jones has done a great job of selling a subscription-based electronic version of the Journal.
DJ's Enterprise Media and Factiva brands would fit more neatly into Google's family. The financial research and information services could add a valuable layer of data to Google's advertising analytics.
Keep in mind that Dow Jones hasn't said it's selling, and Google hasn't hinted it's interested. However, If Google were to show interest in Dow Jones, if this isn't just a balloon floated to push the stock price higher, the game might get much more interesting very soon.
What we know Google does, though, is internet, and Dow Jones has done a great job of selling a subscription-based electronic version of the Journal.
DJ's Enterprise Media and Factiva brands would fit more neatly into Google's family. The financial research and information services could add a valuable layer of data to Google's advertising analytics.
Keep in mind that Dow Jones hasn't said it's selling, and Google hasn't hinted it's interested. However, If Google were to show interest in Dow Jones, if this isn't just a balloon floated to push the stock price higher, the game might get much more interesting very soon.
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