Rumors that Reuters (RTRSY) has been approached about selling the company now revolve around Canandian information services giant Thomson (TOC). The company has a market cap of almost $30 billion, and it is unlikely that Reuters would go for less than $15 billion. But, part of the core of Thomson’s operations is financial services information.
The other rumored candidate is News Corp.(NWS) With a "we will take no action" reaction from the families that control Dow Jones (DJ), Murdoch may have decided to go after a larger company and compete with Dow Jones rather than buy it Reuters could be good partner in the start-up of the News Corp TV business channel. News Corp’s market cap is close to $70 billion. But, Reuters can block any buyer who takes a position in the company over 30% in the name of keeping its news organization independent. A trust controls a portion of Reuters’ shares.
Of course, the other potential buyer might be Dow Jones. It is only worth a little under $5 billion in the open market, but in this period of private equity, the idea that a firm like Blackstone or KKR could put together a deal is certainly within the realm of possibility. It would keep both firms out of the hands of Murdoch.
Douglas A. McIntyre
Top Gaining Stocks
Top Losing Stocks