Will News Corp. keep Newswires and Factiva?

As anyone with a news source knows, Dow Jones & Company (NYSE: DJ) and News Corporation (NYSE: NWS) today reached a merger agreement valued at around $5.6 billon. As the news coverage focuses on editorial integrity, the future of the Wall Street Journal and the Bancroft family politics behind the agreement, it's worth pointing out that News also acquires Factiva and the rest of the Dow Jones information business in the transaction.

At about a third of DJ's revenue (2Q07), the Enterprise Media Group is a substantial part of the business—somewhere north of $500 million a year. But so far, almost all of the attention has been on the media business (will Murdoch ruin the Journal, will the Journal open its web site, what's the opportunity for the Financial Times...). That makes sense, since News Corp. is all about media, and there's time for details to firm up before the deal closes. But the question remains.

Will Murdoch's entertainment, media and advertising company keep its newly acquired information businesses, or will DJ's enterprise group go on the market? Should I call my college buddy at Blackstone?

Not really. But I am waiting for mention of what the combined company will do with the non-media businesses.


About Nathan Gilliatt

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  • Voracious learner and explorer. Analyst tracking technologies and markets in intelligence, analytics and social media. Advisor to buyers, sellers and investors. Writing my next book.
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