Fear and Loathing at the WSJ

As coverage of News Corporation's bid to acquire Dow Jones & Co. hit the streets, the nation's major dailies offered up numerous opinions on the proposal from unnamed staffers at The Wall Street Journal.

It wasn't a pretty picture. Several articles featured words such as "terrible" and "horrible."

The Los Angeles Times article quoted one Journal veteran as saying, "People are scared, maybe terrified would be a better word. Based on Murdoch's record, there is the expectation that there would be major changes if he took over and a lot of people would be looking for a way out."

The New York Times, meanwhile, noted that "Even as some reporters expressed their worries, others took the opportunity to sell some of their Journal shares at a price greatly enhanced by Mr. Murdoch."

The $60 per share represents a 65 percent share premium over Monday's closing price of $36.33. The deal would still have to get the approval from the Bancroft family, which owns controlling shares in the company through a dual-class stock structure. Several have already said they oppose the deal.

The newsroom worries have to do with fears that Murdoch's strident conservative views and penchant for sensationalism could filter into the Journal's general coverage, noted The Los Angeles Times. Others are concerned the price, if accepted, will lead to layoffs and restructuring plans as News Corporation seeks to recoup some of its investment.

"In one word, panic," one Journal staffer told The Los Angeles Times to describe newsroom reaction to the news. "People are terrified at the prospect of Rupert Murdoch owning this paper."

While the Journal's editorial stances are already conservative, staffers have always felt the company respected the line between opinion and independent newsgathering, said media economist Milton Groves.

"From a journalist's perspective, it's a big change," he said. "Murdoch is bottom-line oriented, he's got a conservative bent and the Page 2 girls. But any pragmatic business person, regardless of political leanings, should respect the difference between editorial and news."

The Washington Post quoted from a statement by Ben H. Bagdikian, media critic and former journalist: "If Murdoch gets control of The Wall Street Journal and Dow Jones and if he follows the pattern of his past acquisitions, he will use The Wall Street Journal to serve his own purposes, financial and political."

All the stories in the large dailies, except for The Wall Street Journal piece, noted the opposition from the union representing many Journal newsroom staffers.

"Mr. Murdoch has shown a willingness to crush quality and independence, and there is no reason to think he would handle Dow Jones or The Journal any differently," the Post article stated, quoting from a prepared union statement.

Copyright © 2008 Donald W. Reynolds National Center for Business Journalism