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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?
Elias Alexopoulos of Oakland, Calif., asks:
Is it still possible for the editorial board of the Wall Street Journal to maintain its independence from News Corp.? Is it likely that attempts to alter the WSJ board will be made public and scrutinized by other news organizations?
ANSWERS
Arlene Morgan of Columbia Journalism School responds:

The editorial board is a conservative board with very strong opinions. I do not expect anyone on the board to be quiet if News Corp. starts pulling strings about what appears on the opinion pages. Most editorial boards reflect the publisher's thinking and, in this respect, the WSJ board has had a great ride with the Bancrofts who did not interfere. Given Murdoch's conservatism and the WSJ board's stances, I am not worried about independence at this level. The real test will be on the news pages and how the editorial board that has been created can protect that side of the operation.

If I were Murdoch, I would not cede control of the news operation. He likes to get his hands too dirty in the journalism process to stay aloof.


Andrew Leckey of Arizona State University responds:

We can be certain that just about everything that happens at Dow Jones and The Wall Street Journal will be scrutinized, and quite publicly. It is difficult for any publication's positions and content to be completely separate from its ownership, except in those cases where the ownership really doesn't care all that much about it anyway. I am fairly certain that the next year or two will be an era of separation. However, it may be impossible to maintain that too long. News Corp. will make decisions in regard to hiring and, importantly, the purse strings that pay for everything that goes on in the newsroom.

Since Murdoch is 76 years old, there is also the distinct possibility that when he at some point (obviously no one can speculate on his lifespan) is no longer in charge, the ideology he espoused will erode into more of a corporate approach, as has happened with the empires of other media barons in the past.

It is especially difficult for a publication's editorial operation to remain independent if the owner grew up in the media and has a history of being actively involved in it. Everyone knows who owns their company and one way or another it affects ideas, decisions and trends. Even taking strong stands that run counter to ownership is likely be taken with greater tact and caution, if those involved have any designs whatsoever on long-term involvement with the company. At least that is the way this usually plays out.

Apart from the paper's internal editorial board, a five-member editorial board to assure the journalistic independence of its news coverage has been put into place. It will have limited ability to intervene but unlimited ability to voice its opinions. Its composition will change over time. Few journalists believe it could go against Murdoch and win, though it could play a role in monitoring the product.

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