Thursday, June 7, 2007

Corporatization Of Our Media

Rupert Murdock has offered 5 billion dollars in cash or $60 a share for the Dow Jones, publisher of the Wall Street Journal . The Deal represents an overall premium of 65% to the stock price. The stock (DJ) has seen its ups and downs in the last few years. The Bancroft family which controls roughly 62 percent of the shareholders vote says it opposes the takeover. Members of the company's union have released a statement also opposing the deal.

Some may wonder why anybody in their right mind would not take a 65% premium for their business? Rupert Murdock owns the media global empire he built called News Corp. Mr. Murdock owns 20th Century Fox, Myspace, Fox News and many other media organizations. The primary reason so many are opposed to this takeover is that many don't trust Mr. Murdoch to preserve the Wall Streets Journals reputation and integrity. This is due to the reputation of FoxNews which uses its media resources to control, edit and distort the news for a political agenda. The second richest man in the world, Warren Buffet, put it best "I think Rupert would acknowledge that part of his interest in the Wall Street Journal goes beyond economics". As ours mainstream news becomes reported by fewer and fewer organizations and into the control of larger and larger corporations, one begins to question the validity and integrity of the news that is primarily driven by economics and politics.


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