Murdoch buys WSJ for 6.5 billion
Wall Street Journal Owned by News Corp
After months of debating and haggling between the Bancroft family owners of Dow Jones, Murdoch emerges victorious with another journal under his wing.
"Another one bites the dust" - The song that the media world is whistling as spectators witnessing the conclusion of a fallen soldier to a corporate giant.
On Wednesday August 1st the Bancroft family, after months of deliberation, submitted themselves to Murdoch's generous offer. News Corp. Inc. promises to give the WSJ a facelift and increase profitability by competing with its main foes worldwide. Financially the Journal finds this deal a welcome haven from its sinking advertising profits and debt accumulation. The 105-year-old family run business became news "corporated" for 6.5 billion.
Despite Murdoch's claim to protect content integrity the Journal's editorial board quoted in an online article for the New Zealand Herald on August 3, 2007 -
"We know enough about capitalism to know that there is no separating ownership and control."
Capitalism, an economic system based on competition, ironically has become a system of mergers and conglomerates as businesses no longer find it financially profitably to compete but to merge or sell out.
The Journal has sought to accept its sealed fate and make the best of their owner. However, the silent and forced surrender does not quiet the concerns the long-term affect bids like these will have for the future of the news and journalist.
Meet News Corp. - Third Largest Media Giant
- Eleven Film and Television and Movie Production Programming
- Six Television operations including Fox broadcasting, the number one network in the US and incidently the most aggressive.
- 16 Cable network programming channels
- Three Satellite Companies
- Eight Magazine Companies
- Seven book publishing companies
- 25 other asset companies including MySpace and American Idol.
- 28 newspapers - Make that 29 with the newly acquired Wall Street Journal.
In all the company is worth $56.7 billion.
Why Bigger is not Better
Although it can be argued that Murdoch has the resources and global interest to help the WSJ grow into a successful journal, the impact of large conglomerates swallowing independently owned companies contributes to a range of problems.
- Diminishing market for voices
- Media monopolies
- Polarity of news coverage
- Less job opportunities for journalist in search of alternate employers.
- Less competitive market
- Political and business bias geared toward the interest of the owner and friends.
- Drive for sole profit less interest on journalistic integrity
- Increase fear for job security
The frontier is no longer the conquering of native land but the conquest of business and markets. In 1983 there were 50 media companies now there are just eight major giants from which the majority gets their information and entertainment. It is unfortunate that the world can only witness the end of competition as companies merge and swallow one another in a blood-thirsty drive for profits. One can only wonder to what end.
