Murdoch’s Dow Jones bid: Crazy like a fox

Assuming Murdoch wins over the Bancroft family and gets his hands on Dow Jones, what happens now? Murdoch isn't offering many clues right now, but you can see one easy move would be to share Journal and Dow Jones Newswires stories with his more than 175 newspapers, both in print and online; perhaps launch Journal-branded TV programs through his various channels across the globe. Or why not even brand his new cable-TV business channel with a powerful name — Wall Street Journal TV? Some suggest he might even seek other acquisitions in financial information. Consultant Kreisky and a former News Corp. executive both believe in time he may even make a run for the London-based Financial Times to create an even stronger worldwide presence.

Digitally, both online and through video-on-demand on TV, Murdoch may tailor financial information for investors, particularly using Dow Jones' Barron's publication, the newswires, and its Factiva database. What's more, Dow Jones' higher-end readership could be exploited by a recent acquisition made by Fox Interactive Media, a behavorial tracking firm that helps point advertisers to certain groups with particular habits and tastes. "Rupert is already putting the pieces together to make a huge online advertising play," says Ken Doctor, a lead analyst with newspaper consultancy Outsell Inc. "If he gets Dow Jones, he would have one of the last missing pieces [in terms of audience]."

Meanwhile, Murdoch has opportunities in print as well. The Journal now gets about half as much ad revenue per copy as The New York Times, according to Deutsche Bank. But by combining Dow Jones' properties with his own, Murdoch will have the opportunity to "sell really compelling cross-platform packages, which are in vogue with advertisers," says Maggie Knoll, a senior partner and print director at MindShare, a WPP Group-owned media planning firm. "This could provide advertisers with access to powerhouses across all types of media. Within the business sector, there's nobody like that." She said it would be fair to compare what Murdoch would be able to offer in business to what ESPN offers in sports.

Murdoch believes he has another 20 years in him; after all, his mother just turned 98. "I expect to be running this company as long as I still have my marbles," he told BusinessWeek last year. But the succession issue can't be brushed aside. Most people believe one of the three children from his second marriage will inherit the throne.

Which one has been the subject of lively debate for years—including around the Murdoch Thanksgiving table. Eldest son, Lachlan, 35, still a News Corp. director, bolted from the company two years back after he knocked heads with Ailes, say News Corp. insiders. Most bets are on James, 34, who runs the BSkyB satellite TV business in Britain and is said to be very much in the mold of the old man. The wild card is Murdoch's current wife, Wendi Deng, who has two young children with the mogul and could complicate the succession should her husband suddenly die.

You can be sure Murdoch is not dwelling on such matters. He's got an acquisition to get done and a digital future to build.

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