MarketWatch Inc., which owns the CBS.MarketWatch.com Web site, agreed to be bought by Dow Jones & Co. for $520 million on Sunday, ending a bidding war for the online financial news and information provider.
The two companies said Dow Jones will pay $18 a share for MarketWatch in a deal that allows the parent of the Wall Street Journal to expand its reach into the consumer financial news business.
The deal comes after MarketWatch was approached by several firms indicating interest in its news, advertising sales and licensing businesses.
Other bidders included the New York Times Co.,Yahoo and Viacom.
According to statements on the CBS MarketWatch website:
“If the deal is approved by shareholders, Dow Jones gains a valuable foothold in the fast-growing Internet content and advertising sales businesses, leapfrogging rival Reuters (RTRSY: news) , which has been building its own Internet business for the past two years.
“Joining Dow Jones is a great next step for MarketWatch,” Larry Kramer, chairman and chief executive officer of MarketWatch, said in a statement. “Being part of one of the most respected media conglomerates in the world gives us a terrific platform to grow our business and compete with the largest media companies. By combining Dow Jones’ legendary brands, infrastructure and valuable strategic alliances with MarketWatch’s award-winning newsroom and comprehensive suite of business and analytical tools, this transaction supports our mission to be the market leader in licensed and advertising supported financial news and information.”
Peter R. Kann, chairman and CEO of Dow Jones, said, “We welcome our new MarketWatch colleagues with great admiration for the success they have achieved and high anticipation of what we can achieve together to benefit our readers and our customers.””
Theacquisition should be completed in the first quarter of 2005.
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