I hope Wall Streeters aren't quaking in their suspenders about the potentially negative effects of Rupert Murdoch's News Corp. (NYSE: NWS) receiving a positive vote from Dow Jones (NYSE: DJ) directors regarding the media titan's bid to buy the latter company. Actually, it seems to me that events are lining up in the direction of improved products for those of us who are avid consumers of financial information.
I don't make that assessment lightly. I began reading The Wall Street Journal (Dow Jones' best-known product) as a fresh-out-of-college trader on Wall Street. My daily train ride to Manhattan was consumed with reading as much as possible of my Journal, which I'd folded carefully and systematically to avoid usurping my seatmate's space.
Now, several years and many Journals later, I'm betting that we're entering a positive new era for the iconic financial daily. All of this, of course, assumes that Dow Jones' controlling Bancroft family will surrender control of their heirloom willingly. But considering the ramifications of Rupert's potential ownership since May, I frankly don't see him soiling his own sandbox by thrashing around inappropriately in the Journal's news operation.
I do, however, see him being held at bay by the presence of an oversight board, which reportedly will approve the hiring and firing of Journal senior editors. Even more importantly, I also see him contributing vital new resources to Dow Jones. While the company is in better shape than the publishers of general circulation papers, such as Tribune (NYSE: TRB), Gannett (NYSE: GCI), and McClatchy (NYSE: MNI), it's still operating in a challenging era for all media companies.
One of the resources I see benefiting the Journal and its readers meaningfully would be News Corp.'s new financial channel -- Fox Business News -- which will begin operations in October. The channel and its published counterpart would make for a strong financial news partnership.
Finally, I'd point out that Murdoch has typically provided his properties with the wherewithal to become strong entities. For instance, his New York Post is one of the few metropolitan dailies with increasing circulation statistics, and his Fox News network leads the pack in the race for cable news viewers.
So, as you can probably tell, I'm enthusiastic about what a probable combination of News Corp. and Dow Jones would do for my daily business news fare. I'm also thinking about the seemingly positive investment opportunities that would emerge from a newly reinforced News Corp. I'd suggest that my Foolish friends join me in both endeavors.
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Fool contributor David Lee Smith owns none of the companies mentioned and can't begin his day without a vitamin, a jog, and his Wall Street Journal. He welcomes your comments and questions. The Motley Fool has a very readable disclosure policy.
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