DOW JONES & COMPANY CLOSES $528 MILLION MARKETWATCH
Dow Jones & Company (NYSE: DJ) has closed its acquisition of MarketWatch, a leading provider of business news, financial information and analytical tools, for approximately $ 528 million, or $ 18 per ordinary share fully diluted, or approximately $ 453 million net of cash at MarketWatch.
“The acquisition of MarketWatch offers Dow Jones shareholders real value by accelerating the growth of our already successful and rapidly growing online operations by adding the dynamic MarketWatch brand that reaches a complementary, but larger, audience for online business and financial news,” said Peter R. Kann, Dow Jones president and Chief Executive Officer. “We can now deliver high-quality news to a much wider audience and offer advertisers the opportunity to reach a wider range of wealthy decision makers.”
“Together, the Wall Street Journal and MarketWatch network of sites attract close to 9 million unique non-duplicate visitors per month,” said Richard F. Zannino, Chief Operating Officer and executive vice president of Dow Jones. “This scale places us among the largest financial and business news and information websites in the world. With nearly tripling the reach of our online network, we will take further advantage of continued strong growth in both online usage and advertising.”
“Like Dow Jones, MarketWatch is a journalistic enterprise at its roots. Your content will be used in Dow Jones, just as Dow Jones content will enrich MarketWatch products for its users, ” said L. Gordon Crovitz, Dow Jones senior vice president and president of its e-publications group. “In addition, MarketWatch’s major licensing businesses provide additional assets, such as online charts and other tools that will strengthen Dow Jones as a licensor in the business-to-business market. With the additional audience and traffic of MarketWatch and your site BigCharts , Dow Jones will have even greater flexibility in packaging and selling advertising inventory.”
“This was the right time for MarketWatch to evolve and partner with a world-class media company like Dow Jones,” said Larry Kramer, president and CEO of MarketWatch, Inc. “We have long respected his style of journalism and the success of his business model. Our award-winning news coverage will now reach an even larger audience and we will be able to considerably expand our offerings to our existing users, who are growing in investor sophistication.”
Under the new ownership, MarketWatch’s flagship website and television operations will no longer carry the CBS brand and will be known simply as MarketWatch. The radio network will continue to use the MarketWatch name as it has since its inception. MarketWatch will retain its best-known reporters and reporters, and the familiar look of the site will not change.
Dow Jones will also expand the ad targeting capabilities it offers advertisers. The acquisition of MarketWatch will allow the Company to continue reaping the benefits associated with their business model paid for The Wall Street Journal Online WSJ.com, the largest news site paid subscription on the Web, at the time that it reaches the widest possible audience with a network of free sites, including CareerJournal.com, RealEstateJournal.com and OpinionJournal.com,
With the MarketWatch transaction complete, Dow Jones has now acquired nearly 7 770 million in media properties over the past two years. These include several properties acquired in its e-publishing division (into which MarketWatch will be integrated), including Technologic Partners, Alternative Investor and vwd, the German-language Financial News cable, and the Stockton Record newspaper in its Ottaway Newspapers division.