×
You will be redirected back to your article in seconds

Dow Jones journals MarketWatch win

Acquisition ends bidding war for the Netco

Dow Jones is paying $519 million to acquire financial news Web site MarketWatch and plans to end its licensing agreement with CBS.

Acquisition ends a heated bidding war for the Netco that included other high-profile suitors such as Yahoo!, the New York Times, and Viacom, which has a 22% minority stake in the company.

It also means that CBS will soon see the end of its partnership with the site, branded as CBS MarketWatch. Dow Jones plans to end MarketWatch’s licensing agreement with CBS when it expires next year.

Expiration will end a $3 million annual payment MarketWatch made to the Eye net for use of its name.

Dow Jones hopes to continue syndicated TV and radio skeins that MarketWatch and CBS co-produce.

Agreement calls for Dow Jones to pay $18 per fully diluted share for MarketWatch. Total costs for the Netco’s assets is $463 million, plus an additional $56 million for its cash on hand.

That’s on the high end of what many analysts expected and reflects Dow Jones’ confidence in the booming online advertising market.

Media conglom, whose primary asset is the Wall Street Journal, makes the bulk of its Internet revenue through subscriptions to the Journal’s Web site. With its free content, MarketWatch reaches a significantly larger and less-affluent audience, letting Dow Jones appeal to a broader base of advertisers.

“We see this acquisition as allowing us to continue to reap the benefits associated with a paid business model while also reaching the broadest possible audience with a network of free and paid sites,” said Gordon Crovitz, prexy of Dow Jones’ online publishing division.

MarketWatch has a monthly audience of 7.6 million users, while the Wall Street Journal online attracts 2.8 million individuals. Company estimates 1.1 million users overlap between both sites. Combined, the Dow Jones/WSJ network will be the third-largest financial news resource on the Web after Yahoo and MSN’s finance sections.

MarketWatch stock closed up 8% at $18.12, while Dow Jones shares rose slightly to $45.10.

More Scene

  • DF-10956_R – Gwilym Lee (Brian May) and

    'Bohemian Rhapsody' Producer Confirms Bryan Singer's Reason for Leaving, Says 'No One' Was Attached to Play Mercury

    “Bohemian Rhapsody” producer Graham King provided insight into some of the events surrounding the Golden Globe-winning film Saturday at the Producers Guild Awards Nominees Breakfast, including director Bryan Singer’s departure from the film partway through production. “It’s an unfortunate situation, with like 16, 17 days to go and Bryan Singer just had some issues, his [...]

  • Mj Rodriguez, Nico Santos to Announce

    Mj Rodriguez, Nico Santos to Announce GLAAD Media Award Nominations

    Mj Rodriguez and Nico Santos are set to announce the nominees for the 30th annual GLAAD Media Awards. The “Pose” star and “Crazy Rich Asians” funny man will make the announcement during a live-stream hosted by AT&T and from the AT&T Hello Lounge at the Sundance Film Festival on Friday, Jan. 25. “The images and stories recognized [...]

  • Emile Hirsch, Matt SmileyEmile Hirsch hosts

    Emile Hirsch Hosts Smiley Face Art Opening at Mondrian Hotel

    Despite the rain on Wednesday night in West Hollywood, there were plenty of smiles inside the Mondrian hotel thanks to artist Matt Smiley‘s Refresh exhibition. Not only is Smiley his real last name, but several of his paintings and other pieces in the exhibit feature smiley faces. “I’ve seen more smiley symbolism lately, and I’ve [...]

  • Randall Park, left, and Constance Wu

    Constance Wu Wants Her 'Fresh Off the Boat' Co-Star Randall Park to Host the Oscars

    While the Academy may have decided to go hostless for this year’s Oscars, that doesn’t mean the rest of Hollywood has stopped thinking about who would be a good choice for the emceeing gig. Former host Whoopi Goldberg recently suggested Ken Jeong. Jeong said, when he was a guest on “The View,” Goldberg told him [...]

  • 'Schitt's Creek' Stars Reveal Dream Guest

    'Schitt's Creek' Cast Reveals Dream Guest Stars: Oprah, Beyonce and ...

    “Schitt’s Creek” has big dreams. Dan Levy, who stars as David on the series, says his wish list of guest stars includes Oprah, Beyonce, Mariah Carey and Gwyneth Paltrow. “All for different reasons, none of whom we’ll get,” he cracked at the Critics’ Choice Awards. For those who haven’t caught on to the “Schitt’s Creek” [...]

  • Barbra Streisand and Gisele Bundchen

    Barbra Streisand and Gisele Bündchen to Be Honored at UCLA Science Gala

    Science can be very glamorous. It certainly will be during Oscar week on Feb. 21 when the UCLA Institute of the Environment & Sustainability (IoES) honors Barbra Streisand and Gisele Bündchen for environmental activism at its annual Hollywood for Science Gala. “When I moved to LA, the air was unbreathable. Rivers were catching fire in [...]

  • Don Cheadle and Andrew Rannells Black

    Don Cheadle, Andrew Rannells Talk Snorting 'Coke' on 'Black Monday'

    “Black Monday” show creators David Caspe and Jordan Cahen divulged an intriguing detail to come later in the first season of the new Showtime comedy at its world premiere, held at the Theatre at Ace Hotel on Monday night in Los Angeles. “The fourth or fifth episode opens with a sexual harassment seminar, which very well [...]

More From Our Brands

Access exclusive content