Why the Dow Jones/News Corp. deal is actually rocky
by Chris Roush
Lisa Snedeker of Media Life magazine writes Friday afternoon that despite what appears to be a dealÂ allowing News Corp.Â to buyÂ Dow Jones & Co., the parent of The Wall Street Journal,Â coming closer to reality, it actually is tenuous.
Snedeker wrote, “For any deal to work, it must arise from a sense of shared interest, such that when the deal’s done both parties can move forward. They have to present a united front, and for several reasons. They need protect the value of the stock, which means putting on a good face for Wall Street, but they also need to stem the flight of talent from the paper that would result from a messy deal.
“They need a deal that brings about stability.
“But this deal still has lots of problems, and not the least is a workforce, led by the Journal editorial staff, that’s dead set against it.
“Among the issues is a ongoing dispute over their contract. Union members are going to want a new contract before any sale, knowing full well that a new owner would be inclined to demand salary cuts. The union has also been seeking out other potential buyers, including supermarket magnate Ron Burkle and investor Warren Buffett, among others.”
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