News Corp.-Dow Jones talks progress

An announcement could come as early as today that Rupert Murdoch’s News Corp. and the Dow Jones & Co. board of directors have agreed on editorial protections for the Wall Street Journal, allowing the two sides to start discussing Murdoch’s bid for the company and its high-profile newspaper.

Dow Jones directors seek the creation of a board that would serve as a buffer between the Journal and Murdoch. Such a board, which exists at Murdoch’s Times of London, would mediate differences between Murdoch and the newsroom editors of the Journal, should they arise. Such editorial boards are generally empowered to issue binding decisions.

The two sides met all weekend and into Monday night on details of an editorial board, according to people close to the situation who spoke on condition of anonymity because discussions were continuing.

If the makeup of an editorial board overseeing the Journal can be agreed upon, it would be sent for approval to the Bancroft family -- the controlling owners of Dow Jones, most of whom had opposed Murdoch’s unsolicited $5-billion bid for the company after it became public May 1.

The Bancrofts, a 35-member, three-generation clan whose predecessors built the modern Journal, have warmed to Murdoch and have been represented during these talks with News Corp., making new opposition unlikely, the sources said.

Murdoch wants to add the Journal to his global media empire, which includes the Fox television network, Fox News Channel, 20th Century Fox movie studios and MySpace.com in the United States and extensive satellite television and publishing businesses in Europe, Asia and Australia.

Murdoch plans to launch a cable TV business news channel this year, a rival to CNBC, and would like to draw on the Journal’s expertise. Murdoch also is impressed by the moneymaking capability of the Journal’s website.