If there is a bidding war for Dow Jones & Co. (NYSE: DJ) Rupert Murdoch's lust for power will trump the desire for profits from private equity players such as Blackstone Group LP, Texas Pacific Group or KKR, or any other potential bidders.
Shares of the New York-based financial information company have already soared past the insanely high unsolicited $60 per share offer the CEO of News Corp (NYSE: NWS) has made. Murdoch, though, has coveted the Wall Street Journal for years and would be willing to pay an even steeper price to turn his dream into reality. It wouldn't be a stretch for Murdoch to bid $65 or $70 to snap up Dow Jones.
Other potential buyers view Dow Jones as just a business while Murdoch is most interested in the company's ability to influence the public heading into a presidential election. He is an uneconomical bidder who doesn't mind if some of his media properties lose a little money provided that they further his political agenda.
To be sure, there are some sound economic reasons for a merger between Dow Jones and News Corp. The Journal could certainly give a boost to the nascent Fox business news channel. Though Dow Jones has gotten better under CEO Rich Zannino, the company was mismanaged for years, so there are no doubt still cost savings to be had.
But many questions are yet to be answered.
Would Murdoch -- who has vowed not to interfere with the Journal's news coverage -- keep that promise for other Dow Jones properties? What would become of MarketWatch, Barron's and Dow Jones Newswires? Would WSJ.com remain a subscription service?
Though some have speculated that other media companies will try and buy Dow Jones, I just don't see that happening.
Bloomberg L.P., my former employer, wouldn't want the headaches of dealing with Dow Jones' unionized workforce. The Washington Post Co. (NYSE: WPO) has Warren Buffett on its board, so there is no way that the company would enter a battle for Dow Jones. The New York Times Co. (NYSE: NYT) has got huge problems of its own and probably will become a buyout target itself. Gannett Co. (NYSE: GCI), the best run newspaper publisher, has got too much financial discipline to fight Murdoch.
Murdoch's most serious competition may come from people just like him: Hugely rich people interested in buying The Journal to enhance their already giant egos.
Former American International Group Inc. (NYSE: AIG) CEO Hank Greenberg has been mentioned as a suitor. Perhaps billionaires Ron Burkle and Eli Broad, who failed to buy the Tribune Co., might be interested in Dow Jones. But odds of any of them prevailing against Murdoch are slim.
What the Australian tycoon wants, he usually gets.
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