Michael Bloomberg is launching a bid to break up Rupert Murdoch’s print newspaper empire with a takeover of the publisher behind the Wall Street Journal.
The billionaire businessman is said to have expressed an interest in buying Dow Jones, which is part of Mr Murdoch’s News Corp and also owns Barron’s and MarketWatch.
Mr Bloomberg, a former New York City mayor and candidate for US President with an estimated fortune of $77bn (£64bn), has reportedly not yet contacted Mr Murdoch to discuss a possible deal.
A tie-up would likely come under close scrutiny from regulators owing to concerns over competition in the market for financial data and news.
Nevertheless, any deal would mark a major shake-up of News Corp as Mr Murdoch prepares to hand over the reins of his media empire to eldest son Lachlan.
The Australian media mogul is exploring a potential merger between News Corp and Fox Corporation, the US broadcaster behind Fox News, 10 years after he split them up.
Talks are at an early stage, but a tie-up would see Fox reunited in the same umbrella organisation as UK titles including The Times and The Sun.
However, Mr Murdoch is facing opposition from shareholders over his merger plans amid concerns it would fail to realise News Corp’s full value.
In a letter to Mr Murdoch and the News Corp board last month, activist investor Irenic Capital Management, which holds a 2pc stake in the company, called for Dow Jones to be spun off instead.
Any approach from Mr Bloomberg would further threaten these plans and wrench The Wall Street Journal – one of News Corp’s most prestigious assets – away from the wider group.
Mr Murdoch bought Dow Jones and The Wall Street Journal in 2007 for $5bn, which was considered a significant price tag even before the financial crisis.
However, he has struggled to put his stamp on the institute and its culture. The Journal has a Special Committee, set up under an agreement with its former owners, designed to safeguard editorial independence and ethical standards.
Mr Bloomberg’s interest comes shortly after the British editor of the Sunday Times, Emma Tucker, was appointed to the top job at the Wall Street Journal, marking a further strengthening of ties between Mr Murdoch’s UK and US businesses.
The move has also fuelled speculation that Rebekah Brooks, chief executive of News UK, is being lined up for a senior role in the US.
A takeover of the Wall Street Journal would underline efforts by Mr Bloomberg to build on his empire’s media offering and move away from its reliance on income from the Bloomberg Terminals used by traders.
Subscriptions to the Terminal, which offers data, news and analysis to financial professionals, make up the majority of Bloomberg’s annual revenue of more than $10bn.
The company would be able to integrate any takeover target with Bloomberg Media, its existing news outlet focused on business reporting.
Bloomberg has previously beefed up its coverage by acquiring specialist news titles and market data providers.
Mr Bloomberg would also consider buying The Washington Post from the Amazon founder Mr Bezos if it were up for sale, Axios reported.
The Washington Post would represent a less natural fit for Mr Bloomberg, although a takeover would help to boost the organisation’s political coverage.
The Post has said it will cut up to 250 jobs next year as it struggles to retain subscribers after enjoying a period of heightened popularity during Donald Trump’s presidency.
A spokesman for The Washington Post said: “The Post is not for sale.”
A Bloomberg spokesman dismissed the speculation and said “there is nothing to comment on”.
News Corp declined to comment.
Source: https://finance.yahoo.com/news/michael-bloomberg-launches-bid-break-183311165.html