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REGION: North America
TOPIC: Media
Online NewsHour
FORUM
Posted: August 6, 2007

Murdoch Bid on Dow Jones Advances

Forum Introduction
Wall Street Journal Rupert Murdoch's News Corp. got the go-ahead to purchase the Dow Jones & Co., including its crown jewel the Wall Street Journal, for $5 billion. Experts answered your questions about the impact on the media.
QUESTIONS
What are the concerns when a major media company owns the majority of financial news outlets?
Will the investigating and reporting staff be shaken up?
How will the deal affect the accuracy and balance of Barron's?
Are other newspaper families following the Bancroft family's lead and selling their papers?
Can the editorial board of the Wall Street Journal maintain independence?
Will the Wall Street Journal's focus shift toward Asia?
What can we learn from Rupert Murdoch's past acquisitions?
Janet Grove of Frederick, Md., asks:
I'm concerned about how this will affect balance and accuracy in the reporting in other Dow Jones publications, such as Barron's. I manage my own investments and have found Barron's very helpful. What do you think the effects are likely to be?
ANSWERS
Arlene Morgan of Columbia Journalism School reponds:

I expect that over time changes will emerge in the type of stories that are selected for top play. After all, isn't that the influence he paid $5 billion to attain? But I also have to trust the quality of the reporters who work for Barron's to continue their excellent level of work. Murdoch is too good a businessman to tinker with Barron's credibility. I would hope that if bias starts creeping into stories that the staff would protest pretty loudly.


Andrew Leckey of Arizona State University responds:

Intelligent readers/investors continue to follow investment publications because they have benefited from their information. Once they no longer benefit, they drop them. Loyalty only goes so far.

There is no particular reason Murdoch would change the current formula. However, if staffing was cut back for financial reasons or the best writers/analysts began to leave Barron's for greener pastures, there would be a downgrading of the information. It would likely lose you as a reader.

As far as investments are concerned, there is no reason to significantly alter the basic coverage and delivery of information. Giving bad investment advice would benefit no one, including the publication. Depth and quality could be affected, but I see this as something potentially occurring over time, not in the first couple of years. Virtually all publications have been cutting back, no matter who owns them. This is negative because a lack of generally-available investment information will force investors to seek out paid brokers/consultants as the primary and perhaps only source for all their information. The more quality, accessible investment voices there are, the better.

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