Digest: Murdoch reaches out to DJ
EmptyRupert Murdoch has offered the Bancroft family that controls Dow Jones & Co. a seat on the News Corp. board if it agrees to a $5 billion takeover proposal, a spokesman confirmed Monday. Murdoch also promised to retain current management and establish an editorial board to oversee the news pages of Dow Jones' flagship the Wall Street Journal, which posted his letter Monday on its Web site. Murdoch also said he would welcome a meeting with the family.
Source scoops up Primedia unit
Citing the need for content, Ron Burkle-controlled Source Interlink Cos., a magazine, CD and DVD distributor to grocery and bookstore chains, said Monday that it has agreed to buy the enthusiast media unit of Primedia Inc. for $1.2 billion in cash. The unit publishes 70 special-interest magazines plus related Web sites, including Soap Opera Digest and Hot Rod. "Content creation and ownership is now among the highest priority for Source," chairman Michael Duckworth said in a conference call. Shares of Source Interlink fell 14.9% to $5.79 after setting a 52-week low of $5.53, but Primedia's stock jumped 13.3% to $2.82 after setting a new 52-week high of $3.01 intraday.
ACME posts higher loss for Q1
TV station group ACME Communications on Monday reported a first-quarter loss from continuing operations of $2.3 million, compared with a year-ago loss of $2.1 million, as revenue fell 9% to $7.8 million. "Advertising demand was noticeably softer than we expected during the first quarter of 2007, but we were able to moderate the resulting impact on our bottom line through our continued efforts to control our costs," ACME chairman and CEO Jamie l said. The company projected second-quarter revenue would decline 3%-5% year-over-year.