Aug. 1: Media mogul Rupert Murdoch seals the deal to take control of Dow Jones and the Wall Street Journal. NBC's David faber reports.
NEW YORK - Rupert Murdoch has sealed a deal to buy Wall Street Journal publisher Dow Jones & Co. for $5 billion, ending a century of family ownership and adding a crown jewel to his global media empire, News Corp.
The companies said in the wee hours of Wednesday morning that they signed a definitive merger agreement after the deal won sufficient support to pass from a deeply divided Bancroft family, which has controlled the storied newspaper publisher for generations.
Murdoch is getting one of the great trophies of U.S. journalism and a newspaper that is considered required reading among the business and power elite.
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The deal will also expand Murdoch’s already massive global media and entertainment empire News Corp., which owns the Fox broadcast network, Fox News Channel, the Twentieth Century Fox movie and TV studio, MySpace, newspapers in Australia and the U.K., and several satellite TV broadcasters.
Dow Jones and News Corp. said in a statement that Bancroft family members and trustees representing 37 percent of the company’s shareholder vote have agreed to support the deal. Combined with the 29 percent of the vote held by public shareholders, who are very likely to support Murdoch, the deal is now assured of passing.
The companies said a member of the Bancroft family or another mutually acceptable person would be appointed to News Corp.’s board of directors as part of the agreement.
The Bancroft family, descended over several generations from an early owner of Dow Jones, Clarence Barron, clashed long and hard over whether to sell to Murdoch, with several members saying they feared the quality and independence of the paper would suffer under his watch.
Some family members actively sought alternatives to Murdoch — without success. One of them, Leslie Hill, quit Dow Jones’ board Tuesday as the deal edged toward completion, the Journal reported. Two weeks ago, another director quit in protest, German publishing executive Dieter von Holtzbrinck.
In a statement released early Wednesday morning, a family spokesman said: “It is our most fervent hope that in the years to come, The Wall Street Journal will continue to enjoy, and deserve, the universal admiration and respect in which it is held all over the world.”
The paper’s managing editor, Marcus Brauchli, tried to reassure newsroom employees that the Journal will maintain its editorial independence.
“It is too early to know how or even whether News Corp. ownership might alter priorities or structures at Dow Jones,” Brauchli wrote in an e-mail sent to Journal staffers early Wednesday. “Our current and likely future owners have given formal assurances, however, that the newsroom will retain its independence.”
The Bancroft family initially rebuffed Murdoch in early May, but then agreed to reconsider. Last week they heard exhaustive presentations on Murdoch’s plans but remained divided.
Wrangling continued past a Monday deadline for them to signal their intentions, and on Tuesday the break came when a holdout trust agreed to support the deal, apparently after Dow Jones agreed to pay the family’s advisers’ fees, the Journal reported.
Dow Jones & Company was founded in 1882.
News Corporation has succeeded in purchasing the Dow Jones & Company, the 125-year-old financial information firm and publisher of The Wall Street Journal in a three month long US$5 billion takeover bid. Rupert Murdoch is the chairman and chief executive officer of News Corporation. 

The Bancroft family, which owns 64.2% of the Dow Jones' voting power met Tuesday and finalized the deal amid opposition from some key members who were fearful that Journal's reputation and content would be altered. Last week, the board of the Dow Jones approved the sale, a $60-a-share bid which represents a 67% premium above Dow Jones's share price at the time of the offer. Yesterday, the News Corp. board gathered and gave the thumbs up for the acquisition, leaving only the Bancrofts to decide on the outcome.

Dow Jones, which also owns Barron's Magazine, has been owned by the Bancroft family since 1902. 

Murdoch announced News Corporation's bid in May, and has maintained his company's position because of the lack of rivals. A Bancroft representative had approached other potential buyers, including billionaires Warren Buffett and Bill Gates, who both declined. 

To address concerns that the Journal will be negatively altered, Murdoch plans to add four new pages of coverage, and has agreed to form a committee to decide on hiring or firing any editors.

News Corp. owns and operates dozens of large media companies, including the Fox News and British Sky Broadcasting television networks, newspapers The New York Post, The Australian, and The Sun, magazines TV Guide and The Weekly Standard, as well as internet assets such as Myspace and Photobucket.