Rupert Murdoch’s forthcoming $5.6 billion purchase of Dow Jones & Co. has left hearts palpitating, palms sweating and, undoubtedly, dollar signs dancing in the eyes of those fortunate enough to have their erstwhile $30 per share stock certificates double in value.

Gallons of ink and billions of electrons have already been spilled by observers analyzing the purchase and what it means to DJ’s prized Wall Street Journal. And those opinions basically split into two camps: Murdoch is a savior, whose commitment to ink-on-paper and the Bancroft family’s journalistic legacy should be commended. Or, Murdoch is a money-grubbing opportunist, who will reduce The Journal to Page 3 girls, more faux news and Chinese government propaganda.


Chuck Moozakis, Editor-In-Chief
Newspapers & Technology Magazine
 

As always, the truth is somewhere in the middle. There is no question Murdoch wants to sprinkle some of The Journal’s sterling reputation across some of his other News Corp. properties (MySpace likely excluded). And there is no question he’ll aggressively put the Fox moniker across as many of DJ’s assets as he can. Fox News Dow Jones Industrial Average, anyone?

That’s to be expected. For $5.6 billion, you are supposed to be able to do what you want.

I would like to hope that Murdoch’s purchase does reflect his commitment to the newspaper industry, and that his billions will cement the future of one of journalism’s greatest franchises.

That said, Dow Jones’ transition from paternalistic family ownership to News Corp. won’t come without a few bumps. As we reported in our July issue (“News International rings in new era”), Murdoch counts on consolidation, technology and automation as key weapons to rein in costs. Witness his $1 billion investment to outfit three new U.K. plants with 22 MAN Roland ColorMAN triplewide presses and his strategy to extend operational responsibilities to vendors supplying each facility.

Dow Jones’ 17 U.S. plants, by contrast, are getting a bit long in the tooth, although DJ has over the past two years invested millions of dollars in projects to upgrade controls and reduce the web width of its 19 presses.

Happily, it appears as if Murdoch has signed off on continuing a $30 million color improvement project, which will boost the color capacity of Dow Jones’ presses by 17 percent. And it’s almost a sure bet he’ll shop the plants around to newspapers and other companies that are looking for printing. That could mean formidable competition to Transcontinental Inc., which is also eyeing the U.S. newspaper market.

So the Fox is now firmly in one of the U.S. newspaper industry’s most prestigious henhouses. Will the end result be fur? Feathers? Both? Stay tuned for this one….