Dow Jones seeks to unload Ottaway newspaper chain

Dow Jones & Co. (NYSE:DJ ), publisher of the Wall Street Journal, is looking to unload some or all of its Ottaway community newspaper chain ahead of its $5 billion acquisition by Rupert Murdoch's News Corp. (NYSE: NWS).

This isn't surprising since Rupert Murdoch in August said that he would sell the chain to focus on the Journal and other financial information business. Ottaway, whose publications includes Pennsylvania's Pocono Record, The Cape Cod Times of Massachusetts, and New York-based Middletown Record, isn't a good fit with the flashy tabloids of the Murdoch empire such as The New York Post. Moreover, James Ottaway, the family's representative on the Dow Jones board, was a vociferous critic of Murdoch takeover of Dow Jones.

The businesses, like all newspaper chains, is struggling. Revenue in Dow Jones' Local Media business fell 5.8% in the third quarter as advertising revenue plunged 8.8%. Operating income fell a whopping 13.4%. Even so, buyers will be interested in the chain since local papers still generated considerable cash flow since they are less vulnerable to competition from the Internet than major metro dailies.

Perhaps Ottaway will take some of Murdoch's money and try to buy his family business back.