MySpace financier ‘open’ on Dow Jones
The founder of the company that spawned MySpace said Monday that he would be willing to work with an investment firm recruited by Dow Jones & Co. staffers to fashion a joint bid for the financial news empire.
Brad Greenspan, who made a reported $47 million when his EUniverse was sold to Rupert Murdoch’s News Corp., said in an interview that he would be happy to join forces with Yucaipa Cos.
Controlled by Los Angeles billionaire Ron Burkle, Yucaipa has been advising the main union representing Dow Jones journalists, including those at the Wall Street Journal.
“They’ve certainly got great experience, and we would welcome working with them in some capacity,” Greenspan said. “We are definitely open to talking to any other parties.”
He declined to say whether talks had begun.
Dow Jones is in advanced talks to sell itself to News Corp. for $5 billion, far more than the company was being valued by the stock market before the offer.
Greenspan, meanwhile, has offered to buy about a quarter of Dow Jones stock. He would pay about $1.25 billion to existing shareholders and give an additional $250 million directly to the company for new stock.
The Bancroft family, which controls Dow Jones, has yet to weigh in on the News Corp. plan but has said the company might be better off with another partner. Greenspan said his challenge was to convince Dow Jones and the Bancrofts that he was presenting a solid strategic alternative without a full merger. He met with bankers for the company and the family last week.
In the interview, Greenspan said his strategy focused on a new TV channel on cable or satellite and said he had backing in the Dow Jones bid from a potential pay-TV carrier. Murdoch is also trying to launch a business news channel.
Greenspan also said Internet video could prove a crucial outlet for Dow Jones material. He said various Web companies with which he was affiliated could air that programming, including Chinese video sites Mofile.com and Hubotv.com.
Greenspan is hoping to present himself as a safer alternative for those members of the Bancroft family uncomfortable with Murdoch’s history of close involvement in news operations.
In its talks with News Corp., the Dow Jones board has backed a deal aimed at protecting the newsroom from being used to advance Murdoch’s business agenda. The pact sets up a five-member committee of independent officials that would block the hiring and firing of the top editors for news and opinion at the Journal and the head of Dow Jones Newswires, along with any major change in their duties.
Recently published details show that News Corp. still would have the power to use the Journal brand as it saw fit. In addition, when a committee member leaves, any successor would have to be approved by News Corp.
