Dow Jones & Company, Inc. (NYSE: DJ)'s Wall Street Journal (a.k.a., The Towel) occupies a unique spot in the media firmament. As I pointed out earlier in the year, it changed its format and now looks to me like a Holiday Inn bath towel. Towel Talk offers a perspective on its news and views.
Despite the sporadic efforts of family members, it appears that nothing can stop Rupert Murdoch from taking over The Towel.
The New York Times reports that its board has reached a tentative agreement with Murdoch to be acquired for $60 a share. But the deal still requires approval of the Bancroft family. Since several family members have been struggling to find an alternative, I don't see why those particular individuals would vote to approve the deal.
But the Bancroft family is now faced with a choice between the deal collapsing which would cause Towel stock to plummet back to about $36 or accepting Murdoch's cash. And I'd guess there are enough family members willing to take the cash that the deal will go through.
My prediction is that this drama is finally over and the Bancroft family's conflicts will no longer grace the pages of The Towel.
Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has consulted to News Corp's CEO and has no financial interest in the other securities mentioned in this post.
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