Posted by: Lauren Young on May 1, 2007
Go Rupert Murdoch.
Believe it or not, just yesterday I was musing with Tobias Levkovich, chief U.S. equity strategist at Citigroup, about potential partners for Dow Jones. We agreed that News Corp. is a great contender. Levkovich is bullish on the media sector, especially because valuations are so compelling. His favorites in the group are broadcasting and publishing names.
Now comes News Corp.’s unsolicited bid for Dow Jones, which is the best thing that has ever happened to Dow Jones. My advice to DJ shareholders? SELL! Your ship has come in.
Full disclosure: I worked at Dow Jones for 10 years, but I sold my stock after I joined BusinessWeek, which is a unit of McGraw-Hill, in 2003. During the period that I worked at the company, the stock was a flatliner at best.
This jolt by News Corp. is also terrific news for media companies because it will get more folks in the market focused on the unloved media sector.
Stay tuned…this is a great story.