Dow Jones Puts Its Storied Indexing Unit For Sale; Other Units For Sale Too?
Dow Jones, now part of News Corp (NYSE: NWS). has puts its stock-market indexing business for sale, reports DJ-owned WSJ. Along with this comes the possibility of changing the name of the index from Dow Jones Industrial Average, something that has been considered in the past by the company. The process is being led by Goldman Sachs, and could result in a JV, sale, or…well…nothing. The index was introduced in 1884. Among the possible suitors, the story says, includes MSCI Inc. a former unit of Morgan Stanley specializing in building market indices, Bloomberg, and the NYSE Euronext stock exchange. Based on some guesstimates, the story says the value of the index unit may be around $700 million, which at current market conditions, seems like an unlikely price for it.
More than that, this indicates that DJ under News Corp may be willing to sell of other assets in its portfolio. Murdoch’s company bought it in 2007 for $5.7 billion, and had to write-off a big chunk — $2.8 billion — earlier this year. Any ideas which ones could be sold, besides the obvious ones like the local media unit? The full list of DJ businesses here.
700 Mill? You've got to be kidding me. Only the brands & Historical data are of any use. The rest is useless. Now, if the DJIA needs to be rebranded, then why spend for the brand? There are bragging rights… 1884 onwards etc. Very surprised that they are wanting to sell it. Maybe it is the valuation that set them thinking about it.
The stuff that will probably go…
Local Media (some or all, if there are any takers that is). New England editions might yet stay on (blue-blooded and all that).
Far Eastern Economic Review
WSJ Asia, only it is now (will?) feeding WSJ India. So, tough call. Maybe the roles will switch between the two.
SmartMoney (Hearst brings staying power, printing efficiencies, so 50:50 chance on this)
If they are smart and wish to cut cost, maybe they will cut the classroom edition. Quite a con for advertisers that.
Most of Enterprise media will stay. some divisions that may not make the cut, Financial Info Services, Business & Relationships services and maybe Client solutions.