Journalists at The Wall Street Journal, the US financial newspaper being stalked by Rupert Murdoch, may stage a walk-out if he buys the title's parent company Dow Jones, according to sources close to the publication.
The Bancroft family, which controls 64 per cent of Dow Jones through shares with special voting rights, said last week it would enter talks with Murdoch's News Corporation after it tabled a $60 per-share bid for the group last month.
It had previously said that family members controlling 52 per cent of the shares were opposed to a deal, but Murdoch's offer, which values the company at $5bn, has brought it to the negotiating table. Talks are due to be held soon, although no date has yet been set.
'The feeling on the shop floor is they hate the fact that Murdoch's name and all the baggage that comes with it will be attached to their paper,' said one senior newspaper executive in the US. 'Their view is that the Rupert Murdoch name becomes an adjective that gets added to any media property he buys. Their fear is it will damage their credibility.'
Senior journalists at the Journal have already called on the company to veto a sale to Murdoch. But shares in its publisher rose by 15 per cent on Friday after the Bancrofts effectively put the business up for sale, ending a month of resistance to Murdoch's offer. There was speculation on Wall Street last week that Murdoch could increase his offer by $5 a share to close the deal. Other offers will be considered, but Murdoch is now the favourite to win control of the group.
'The moment you meet with him it's game over. He's the most charming, erudite, persuasive man you'll ever meet,' said one senior executive.
Dow Jones shareholder Michael Chren, of Allegiant Asset Management said: 'Murdoch has them exactly where he wants them. No one else is coming to this party. It seems very likely we're headed to a deal between News Corp and Dow Jones'.
Murdoch has promised to set up an independent editorial board and give the family a seat on the News Corp board.
'The family...... intends to meet with News Corp to determine whether it will be possible to ensure the editorial independence, integrity and journalistic freedom that is the hallmark of Dow Jones,' a Bancroft representative said on Friday.
According to one senior newspaper executive: 'It's a very difficult situation for The Wall Street Journal. They just haven't got the capital to expand in the way they should have done. They need Murdoch but they don't want him.'
US newspapers are struggling as advertising revenues fall and circulation stagnates. Dow Jones said last month that advertising sales at the Wall Street Journal dropped 12 per cent in April.
