Rupert Murdoch's News Corp and Dow Jones & Co Inc have "basically agreed" on a structure to protect the editorial independence of Dow's news operations, including the Wall Street Journal, a source familiar with the matter said on Tuesday.
The source said Dow Jones' controlling family, the Bancrofts, would be consulted on the agreement, which was reached late Monday evening. The Bancroft family must approve any deal with Murdoch. A separate source close to the situation said an agreement, which would also cover Dow Jones Newswires, was near, but several items were left to be discussed. The source did not elaborate.
A pact to protect journalistic integrity is seen as one of the biggest hurdles to News Corp chief executive Murdoch's $5 billion offer to buy Dow Jones, which also publishes Barron's and business news Web site MarketWatch.com. Discussions accelerated last week after Dow Jones said its board would take over negotiations with News Corp.
The Bancroft family had met Murdoch in early June and discussed a proposal to protect editorial independence. But the Dow Jones board grew concerned that lengthy deliberations among a wide network of Bancroft family members could push Murdoch to withdraw his bid.
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