LOS ANGELES, June 20 /PRNewswire/ -- Internet Entrepreneur and MySpace
Founder Brad Greenspan today announced that he is leading an investment
group seeking to take a non-controlling stake in Dow Jones Corp. (NYSE:
On June 19, 2007, Mr. Greenspan's investment group ("Journal Investment
Group" or "JI") delivered a letter to the Board of Directors of Dow Jones
Corp. containing the following proposal:
-- JI would commit to purchasing approximately 25% of outstanding Dow
Jones common stock at a price of $60 per share. The structure of the
transaction would be similar in nature to a "Dutch Auction" in which
all shareholders could choose to tender their shares at the $60 price.
Shareholders would also have the right not to sell any of their shares.
On a pro rata basis, JI would purchase shares from all shareholders
tendering their shares until it had acquired an aggregate amount
totaling $1.25 billion.
-- Separately, JI would purchase $250 million in common stock from Dow
Jones at a price of $60 per share. This investment would provide the
company with capital necessary to pursue the expansion of high growth
opportunities in internet/digital/broadcasting areas.
-- Two seats would be added to the Dow Jones Board of Directors to be
filled by individuals of JI's choosing with specific expertise in
The full proposal and a summary of the JI's strategic plan for
enhancing shareholder value in Dow Jones Corp. can be viewed at
"Our proposal to take a non-controlling stake in Dow Jones stands as an
attractive alternative to the current options as a vehicle for maximizing
shareholder value," said Mr. Greenspan. "Our proposal is based on our
strong belief that significant shareholder value can be created by more
effectively leveraging the brands and electronic media assets of Dow Jones.
I have successfully built a number of Internet franchises, including
MySpace, and in studying the assets of Dow Jones, I believe the potential
exists to significantly enhance the company's presence and revenue streams
in electronic media."
The merits of the JI proposal include the following:
-- Creates significant immediate value for current shareholders by
providing a premium liquidity event at $60 per share
-- Enables the Dow Jones and Wall Street Journal operations to remain
independent from other media conglomerates
-- Provides a capital infusion to enable Dow Jones to aggressively pursue
the expansion of its electronic media revenue streams
-- Contributes the expertise necessary to unlock the value in Dow Jones'
-- Provides further opportunities for outsized shareholder returns as the
new digital strategy is implemented
"We believe our proposal is a great opportunity to put a solution
together that can keep Dow Jones independent and able to firmly hold on to
its culture of integrity and high quality reporting, while at the same time
being beneficial to all of the company's stakeholders," said Mr. Greenspan.
"We hope to engage in a dialogue with the Board of Directors in order to:
1) get feedback on how we might evolve our proposal if necessary to meet
all of the company's goals with respect to considering a strategic
transaction; and 2) provide more detail on the strategic value that JI
would provide as a partner and our ability to help the company maximize the
value of its digital assets.
"It is worth noting that my last effort to unlock shareholder value and
provide an alternative transaction to shareholders was in September 2005
when my investment group lost a bid to keep MySpace as an independent
publicly traded company. If our bid had been accepted, we estimate that
shareholders would have seen the value of their stock increase by more than
40x within 18 months, instead of the $327 million cash out value they ended
up receiving for their MySpace holdings. I believe we have similar value
creating opportunities with our strategic investment in Dow Jones Corp.
"Finally, as our goal is also to maximize the post-transaction value JI
brings to Dow Jones Corp. we are open to considering participation by other
interested strategic parties that can facilitate additional online or
broadcast distribution," said Mr. Greenspan.
ABOUT BRAD GREENSPAN
Brad Greenspan is a Los Angeles-based Internet Entrepreneur and the
founder of MySpace. Greenspan currently has majority stakes in privately
held Live Universe, Inc. and BroadWebAsia, which in aggregate are composed
of over 30 websites that reach approximately 75 million unique users each
month across the U.S./Europe/Asia. More information can be found at
Financial Relations Board
SOURCE Brad Greenspan