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Title: Wall Street Journal Bid Raises Political Concerns

Author: Politi, James; White, Ben; Luce, Edward; Barker, Alex Article Type: Company
Source: Financial Times, p20(1) Publication Date: May 2, 2007
URL of Publication: http://www.ft.com

Rupert Murdoch, whose News Corp. has made a $5 billion bid for Dow Jones & Company, is confident that politics will not be an issue in his attempt to take control of the firm from the Bancroft family. Murdoch says he has friends 'on both sides of the aisle' and does not see any regulatory opposition to his plans. There are no laws that cover national newspapers in terms of television stations and overlaps, Murdoch says. There is no monopoly problem associated with his activities. Observers in Washington believe that the Federal Communications Commission (FCC), which is in charge of regulating media ownership, will examine the potential deal very closely if it appears to be going forward. There may be pressure on Murdoch to address issues relating to concentration in the New York market. If Murdoch's bid for Dow Jones succeeds, it would be the first time that the FCC faced a cross-ownership situation that involved a national newspaper title. It would be going into new territory, according to industry insiders, but there is likely to be considerable political pressure to examine the deal. The News Corp. bid for Dow Jones may be used by politicians who want to express their worries about the impact of media mergers and the influence Murdoch could have in the industry, particularly since the Democrats have taken control of Congress.

Companies:
Dow Jones & Co Inc News Corp

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