Here we have a story about not 1, but 3 billionaires! Our cast of characters include: Rupert Murdoch, Ron Burkle and even Warren Buffett.
Who are these guys?
Rupert Murdoch, of course, is the well known chairman of
News Corp. which owns Fox and Company and many media companies on a world scale.
Ron Burkle, also worth billions, is less well known. He is a Los Angeles grocery company owner who is trying to work with Dow Jones & Co. Inc. employees to try to counter the $5-billion bid for the company from Rupert Murdoch. Burkle, son of a wealthy corporate executive, has been known to lend a
sympathetic ear to unions from time to time. [Burkle runs The Yucaipa Cos., an investment firm that recently bought the specialty magazine division from Primedia Inc. for $1.2 billion.]
Also, enter, Warren Buffett of Bershire Hathaway (
BRKA-NYSE). Because Dow Jones union employees are so frightened of Rupert Murdoch, they will talk with any billionaire at any time. The Independent Association of Publishers' Employees (IAPE) have stated: "IAPE believes any such takeover will be a disservice to the readers who depend on the unquestioned integrity of Dow Jones and all of its publications." Obviously, the IAPE are not that concerned with maximizing the long-term value of
Dow Jones shares.
Why is this happening?
Two main reasons. 1- The Dow Jones stock (
DJ-NYSE) has been an absolutely awful performer for an extended period of time. And, 2- the sun is starting to set for the Bancrofts (family).
Who will win? It's still early. Let's continue to watch and see.
