Dow Jones approves News Corp buyout

The board of Dow Jones & Co has approved a $5.6bn offer from News Corp to buy the US media group, publisher of The Wall Street Journal.

In a joint statement on Wednesday, Dow Jones and News Corp said Bancroft family members holding about 37 percent of Dow Jones's voting power agreed to support the deal.
Dow Jones shareholders still must approve the buyout, virtually guaranteed given the 65 per cent premium offered.

The deal will see News Corp take over other newspapers, and online and print assets of the media group, which has been controlled by the Bancroft family for more than a century.
It will also add to Murdoch's sprawling media empire - from the Fox television stations and MySpace online social network to The Times of London and The New York Post.

Buyout
Peter Bibb, a media analyst, said: "Rupert Murdoch basically put his offer on the table, took a step back and played a wonderful winning game of poker. Not doing anything that would antagonise the Bancrofts or other Dow Jones shareholders.
The buyout wil also aid the launch of a Fox business channel later this year.
Bibb said: "This is the capstone of his [Murdoch's] career as the number one media mogul in the world right now and it was something that he has wanted to do for a very long time".
The companies said the boards of both companies have approved the deal.
Under the terms of the agreement, Dow Jones shareholders will receive $60 in cash for each share of common stock or Class B common stock that they own.
Either a Bancroft family member or another "mutually acceptable person" is to be appointed to the News Corp board.
A five-member committee is also be set up to oversee the editorial independence of Dow Jones's news operations.
The acquisition is expected to close in the fourth quarter, the companies said.