Murdoch: Points to ponder

New York, June 2 (Reuters): Representatives of the Bancroft family, which controls Dow Jones & Co, plan to meet News Corp chief Rupert Murdoch on Monday to discuss his $5-billion bid for the company, The Wall Street Journal reported on its website citing sources familiar with the matter.

The meeting is expected to deal with issues related to journalistic integrity. The Wall Street Journal also reported that Michael Elefante, a partner at the law firm that represents the Bancroft family, has changed his mind about selling Dow Jones.

Elefante said the company should consider a sale to Murdoch or another bidder to remain competitive.

Dow Jones publishes The Wall Street Journal, Barron’s and Dow Jones Newswires, which compete with the Reuters group and others in providing financial news.

Editorial freedom

A crucial factor in whether the Bancroft family decides to sell Dow Jones to Rupert Murdoch is his commitment to preserve the company’s reputation for editorial independence.

But even if the News Corp chief sets up an independent editorial board or agrees to any other measures, journalism experts said the problem the Bancrofts face is they would have no compelling way to bind him to his promises.

“He may abide by some understandings for a period of time, but the essential point will be that he will own The Wall Street Journal,” said Alex S. Jones, director of the Joan Shorenstein Center on the Press, Politics & Public Policy at Harvard University.

Jones said it would be “crazy” to think that Murdoch would buy Dow Jones for $5 billion and leave the Journal, its star media property, unchanged.

He described the family’s insistence on Murdoch maintaining editorial independence for Dow Jones as a “fig leaf” to cover a decision he described as fundamentally financial.