Text of Murdoch letter to Bancroft family
May 15, 2007
Below is the letter sent by Rupert Murdoch, the chairman and chief executive of News Corporation, to members of the Bancroft Family regarding his US$5 billion offer for Dow Jones & Co.
May 11, 2007

The Members of the Bancroft Family
Dow Jones & Company, Inc.
1 World Financial Center
200 Liberty Street
New York, NY 10281

Ladies and Gentlemen:

Please allow me the opportunity with this letter to address more fully why News Corporation would be an ideal partner for Dow Jones, and why we are so enthusiastic about a potential combination. As I stated to you in my letter of April 26th, nothing is more imperative than demonstrating that News Corporation would be dedicated to building upon the more than 100-year heritage of your great Company.

We are disappointed, as I imagine you are, that the details of our proposal and the discussion of the merits of a potential combination have become a matter of public debate. In the weeks since our proposal was made public on Tuesday, May 1st, there has been much written about a potential combination and News Corporation's intentions. I would like to express my regret if you have been placed in an uncomfortable position by the events of the past week.

Much has been written about me, my family and our company, some flattering, some not; some accurate, most not. Please let me assure you that, first and foremost, I am a newspaper man. I don't apologize for the fact that I have always had strong opinions and strong ideas about newspapers; but I have also always respected the independence and integrity of the news organizations with which I am associated.

Quite simply, the businesses of Dow Jones, and in particular The Wall Street Journal, represent American journalism at its best. Your record of journalistic independence and integrity is second to none. Any interference -- or even hint of interference -- would break the trust that exists between the paper and its readers, something I am unwilling to countenance. Apart from breaching the public's trust, it would simply be bad business.

We at News Corporation know that the credit for building such an enterprise goes to the members of the family, a strong and committed Board and management team, and an editorial and reporting staff of the highest caliber. Our interest in Dow Jones comes from an appreciation of this tradition, one that runs in my family as well. My father, Sir Keith Murdoch, was himself a celebrated journalist, best known for uncovering the British debacle at Gallipoli in 1915. Upon his untimely death in 1953, I returned to Australia to go into the family business and subsequently expanded it to many newspaper titles over the next five decades. As a father myself, nothing makes me more proud than to see that my own children have inherited the passion that my father nurtured in me. They share with me a faith in the positive role that journalists play in society and in the future of newspapers to inform, educate and engage.

With this heritage in mind, I am pleased to outline my vision for what News Corporation brings to a potential combination. At News Corporation, we believe that investment in people, brands and technology are critical to maintaining a competitive edge and relevance with today's consumer. In fiscal year 2007 alone, we will invest nearly $1.3 billion in capital projects, and considerably more than that in other growth and expansion initiatives. A large portion of this is allocated to the modernization of our UK newspaper facilities. We believe that News Corporation could bring substantial resources to bear in a combined enterprise, providing the additional capital and scale that will preserve Dow Jones' leadership and growth for generations to come. We have considered below a number of potential avenues for further investment behind the Dow Jones family of businesses:

• Commit to continue to promote journalistic integrity, at Dow Jones and in the world

Maintaining the heritage of independence and journalistic integrity of The Wall Street Journal and Dow Jones' other publications would be of utmost importance to me and to News Corporation.

• Establish an independent, autonomous editorial board exactly along the lines of what was established at The Times of London. Creating such a Board would ensure that (1) both the Editor and the Managing Editor of The Wall Street Journal would not be appointed or dismissed without the approval of the majority of the directors of the Board; and (2) ensure that any dispute between management and editors is properly arbitrated by the Board.

• Increase funding and support for the Dow Jones Foundation to continue to promote journalism standards and press freedom around the world.

• Commit to ongoing involvement of the family in the combined business of Dow Jones and News Corporation

I would appoint a member of the Family to the Board of News Corporation

• The family has been an excellent steward of Dow Jones for many generations.

• I would hope that including a family member on the Board would help alleviate any concerns about maintaining journalistic integrity and ensure good communication between the family and News Corporation going forward.

• Leverage News Corp's International Presence and Expertise to Expand Reach of Dow Jones' brands in under-served markets

News Corporation would leverage its significant global resources and platforms to drive international growth and expansion of the Dow Jones and Wall Street Journal brands.

• Expand where appropriate Dow Jones' editorial presence in emerging Asian markets, including India and China.

• Utilize News Corp's distribution platforms in Asia and Europe to better promote and market Dow Jones' products and services.

• In Europe, News Corporation has such a large presence that anything less than a leading market share for The Journal would be a disappointment.

• Reach a broader domestic audience by expanding the content base

In the U.S., where Dow Jones and The Wall Street Journal already have a strong heritage and consistent success, we would also make necessary investments to grow the business, particularly at The Journal's Washington, DC bureau.

• Invest in digital media and utilize News Corporation's capabilities to enhance value

Dow Jones is already a leader in content and digital media with three of the world's leading paid-subscriber financial news sites. We would enthusiastically build upon this success by leveraging the scale we have built in digital media.

• Honor the tradition of partnership for Dow Jones' greatest asset, its people

I would not have considered an offer without the full confidence and knowledge that Dow Jones and The Wall Street Journal are served by the most dedicated and accomplished team of journalists, editors, management and other employees of any media organization.

• Retaining this team would be a key priority for News Corporation.

• We would also invest in the The Journal's headquarters to ensure it remains a state-of-the-art facility that promotes and encourages easy access between management, editors and reporters.

I understand the magnitude of the decision you are facing. I hope you find our proposal an indication of the great hope I have for Dow Jones' future. I trust you have a better understanding of my commitment to preserving and building upon your legacy.

I would welcome an opportunity to meet with members of the family, the Board, management, and the newsroom to review our proposal in further detail. Thank you for your consideration.

Yours sincerely,
Rupert Murdoch

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Gus: see below...

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4. Murdoch v Mayne: the final confrontation
By Stephen Mayne, candidate for the News Corp board

Rupert Murdoch’s charm offensive with the Bancroft family, controllers of Dow Jones, has now extended to offering them a News Corp board seat if the $US6 billion takeover proceeds.

Forgetting that News Corp is a public company, Rupert’s letter to the Bancrofts declares that “I would appoint a member of the family to the board”.

Rupert hopefully rediscovered overnight that shareholders have to elect directors when he received my fax nominating for the News Corp board at this year’s AGM in New York. Rupert himself will be up for re-election for the first time in decades, so it will be historic to have a contest.

I’ve also submitted a shareholder resolution that reads as follows:

That the News Corporation board of directors submit a proposal to holders of class A and B shares within the next 12 months which, if approved, would create a company with just one class of share.

These are some of the arguments in the 500-word supporting statement I have written, a document that must be sent to all News Corp shareholders in this year’s proxy statement:

Standard & Poors only allows one class of share from each company to be included in the S&P500 index on the New York Stock Exchange.

Given this has to be the most populous share on issue, News Corp’s B Class voting shares are not included in the S&P500 index. Therefore, many index funds are compelled to buy non-voting A Class shares and holders of the B Class voting shares suffer a lower than necessary share price.

Having a single class of share would add almost 1 billion News Corp shares into the S&P500 index, lifting the total to more than 3 billion shares.

From the ABC

Chinese journalists oppose Murdoch takeover bid

Members of the Wall Street Journal's prize-winning China team are joining growing opposition within the paper to media mogul Rupert Murdoch's bid to buy its parent company Dow Jones.

A strongly worded letter signed by seven of the paper's China staff and sent to Dow Jones' controlling Bancroft family says Mr Murdoch is notorious for kowtowing to China's communist rulers in the pursuit of profit.

"News Corp chairman Rupert Murdoch has a well-documented history of making editorial decisions in order to advance his business interests in China and, indeed, of sacrificing journalistic integrity to satisfy personal or political aims," said the letter dated May 10.

"It is fair to ask how News Corp would change the Journal's coverage."

Members of the Bancroft family are believed to be under pressure to accept a $6 billion offer by News Corp, which includes a 63 per cent premium on Dow Jones' recent stock price.

 

Rupert Murdoch's pay up another $US3.6mFriday Sep 7 09:42 AEST

AP - Rupert Murdoch, chairman and chief executive of News Corporation, received compensation valued at $US24.3 million ($A29.6 million) in the fiscal year ended June 30, according to an analysis of a regulatory filing made on Thursday.

News Corp, which has agreed to acquire Dow Jones & Co, publisher of The Wall Street Journal, paid Murdoch $US8.1 million ($A9.9 million) in salary last year, an increase of $US3.6 million ($A4.4 million).

The company's compensation committee said it gave Murdoch the increase "for purposes of pay parity" between him and his chief operating officer, Peter Chernin, and said it was warranted by News Corp's continued growth under Murdoch's leadership and his record of creating value.

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Gus: Quite a very small pay packet for all the hype and froth around Mr Murdoch dweedles... I'm sure he must be watching his income like a pauper waiting for his next hand out... 

At the present rate of my income, it could take me a couple of thousand years before making half of his yearly moneys... 

Communications Minister Stephen Conroy has ramped up his attack against The Australian newspaper, accusing it of "waging a war" against Labor and trying to destroy the National Broadband Network.

In Senate Estimates earlier this week Senator Conroy took aim at the paper, saying it no longer reported news.

On ABC TV's Lateline program last night the Minister went further, saying the paper was creating "myths" about the NBN.

"They've been waging a war since just before the election was finished, creating stories that are completely untrue," he said.

"The Australian newspaper have continued to perpetrate one of these - what is reaching urban myth levels, because of their constant repetition of it - that there's a $6,000 cost to rewire your home to get the NBN.

"Now Mike Quigley has made it clear last night, but many times in discussions with the newspaper, that is not true."

Prior to the election the newspaper ran a strong campaign against the Government's $16.2 billion Building the Education Revolution (BER) program.

Senator Conroy says The Australian is targeting the NBN because it is trying to force a change of government.

"You can only come to the conclusion that they are determined to destroy the NBN in the eyes of Australians because it was an important factor in us winning government," he said.

http://www.abc.net.au/news/stories/2010/10/21/3044107.htm

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Gus: one of the unsung factors which influences the Murdoch Empire to strike back at the National Broadband Network via its "the Australian" rag is that the "NBN" is going to go in direct competition with the Fox...

The NBN is basically a fast form of cable for all to tap in and spill into — and that included new communication channels, including High Definition TV. With the NBN, I could for example place a loop of my home-movies to "subscribers" if I wish. The NBN will compete full-on with Foxtel, giving you 1000 more possibilities than Foxtel offers — but as well you will be able to hook up to Foxtel as a "subscriber" without having to have the top box decoder. A simple computer with TV facility (window 7 is bragging it can do that now — Apple has been able to do this for nearly 10 years, I have my TV on my two-screens computer as I write this) will give you ACCESS TO THE WORLD — bypassing all the pre-digested news and biased commentating.

Sure a lot of fibs and tortuous crap will crop out of it Not much different from the fair and balanced Fox network slant), but eventually we will be able to communicate on Hi-Def Skype (or for those with a Mac on iChat if you are networked). Beyond this the business of doing business will be sped up and virtual conference rooms will be the daily bread.

The main problem the Murdoch Empire can foresee with the NBN is how anyone is going to be able to make money out of something so efficiently democratic? It could spell the demise of organised religion, the demise of government controls, the demise of traditional media channels into a multitude of expressions and purposes.

Art has had this implosion/explosion of stylistic trends nearly 50 years ago... Anything goes... Now our communicative means will compete for customers against thousands of other suppliers. Price of information supply could collapse. This, Murdoch does not want to see... Over the years, Murdoch has carefully crafted a means to control dissemination of controlled news and entertainment for profit. He had to implant a wire into our brains to make sure we don't forget his empire exists. The NBN is likely to unravel his line.

But we can trust uncle Rupe to come up with a new way to hook you up. Meanwhile he's going to fight the NBN as unfairly as he can — including using his might of disinformation media...

see toon at top and all others in regard to Murdoch including this one where he panned Aussieland for being backwaters, when now he pans Australia for being too advanced (although he will not use such descriptive glow) with the NBN...