Dow Jones & Co.’s union enlisted billionaire Ron Burkle to explore alternatives to Rupert Murdoch’s $5 billion bid in an effort to secure the editorial independence of the Wall Street Journal.
Warren Buffett was also among the investors approached by the Independent Association of Publishers’ Employees, which represents 2,000 employees of New York-based Dow Jones, the union said in a statement today. The Bancroft family, which controls 64 percent of Dow Jones, had no immediate comment, said spokesman Roy Winnick.
Burkle agreed to work with the union more than a month after Murdoch’s offer of $60 for each Dow Jones share, or 65 percent more than the closing price on April 30 before the offer was made public. Members of the Bancroft family met with Murdoch yesterday to discuss his proposal after initially rejecting it.
“It’s very interesting, but I’m skeptical Burkle and the union can compete with Murdoch,” said Richard Dorfman, managing director of Richard Alan Inc., an investment firm focusing on media companies based in New York.
Dow Jones spokesman Howard Hoffman declined to comment, as did Andrew Butcher, a spokesman for Murdoch’s News Corp. Frank Quintero, a spokesman for Burkle’s Yucaipa Cos., wasn’t immediately available to comment.
Murdochon Monday described his meeting with the Bancrofts as “constructive.” The family, which has controlled Dow Jones since 1902, held talks with Murdoch for the first time after it rejected his offer on May 1.
The IAPE hired advisers Monday to find alternatives to News Corp.’s proposal. The union said today it is “hopeful” that the Bancroft family will decide not to sell the company.
Berkshire Hathaway Inc. Chairman Buffett said in an interview with CNBC earlier this month that it would be “very unlikely” that Berkshire would buy Dow Jones.
