Finance case study of new york times co.

Case Assignment Read the following articles about the Dow Jones Co. takeover by News Corp.: • Joe Nocera, “Destroying Dow Jones to Save It,” New York Times, May 19, 2007, n • Allan Sloan, “The REAL reason the Bancrofts lost Dow Jones,” Fortune, August 20, 2007, **Extra point: Read also Washington Post Co. Chairman and CEO Donald Graham’s opinion about Morgan Stanley’s campaign against the New York Times Co.: Donald E. Graham, “The Gray Lady’s Virtue,” The Wall Street Journal, April 23,2007, Now think about the following questions and address them in your presentation: 1) Why is there so much family control in the newspaper industry? 2) How did the Sulzberger family manage to retain control of the New York Times Co. after it went public? 3) How does the New York Times Co.’s dual-class structure differ from the one Dow Jones & Co. had prior to its takeover by Rupert Murdoch’s News Corp.? 4) What explains the behaviour of the New York Times Co.’s institutional shareholders-not just Morgan Stanley Investment Management’s but also Private Capital Management, T. Rowe Price, Fidelity, and Vanguard? 5) How Should Arthur Sulzberger, Jr. respond to Morgan Stanley Investment Management’s proposal? (*If you are interested, you can read Hayes et al.’s (2005) note on Dual class share companies, HBS 306-032.) Link to the case study: Spreadsheet:


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