MySpace founder Brad Greenspan said Tuesday he informed Dow Jones & Co. that he has the support of more than five investor groups interested in considering a transaction with him for the publisher of The Wall Street Journal.
Late Monday newspapers reported Dow Jones and Rupert Murdoch’s News Corp. appeared to be nearing a decision on a possible sale of the publisher. The boards of both companies planned to meet Tuesday to discuss whether to proceed with the transaction or not, The Wall Street Journal reported. News Corp. has offered $5 billion for Dow Jones.
In a letter to Dow Jones, Greenspan said a possible transaction with the investor groups could include a joint venture that would create three new businesses, WSJUSLive, WSJAsiaLive and WSJEuropeLive. The businesses would each be able to use Wall Street Journal content for online video and a financial channel.
The groups would invest $300 million in cash and $300 million in stock in the joint venture, with Greenspan open to the possible addition of more investors.
Greenspan criticized the dealings between Dow Jones and News Corp. as “highly deficient” and suggested information Dow Jones provided to News Corp. be presented to other interested parties.
“It is not too late for the directors to fulfill their fiduciary responsibility to shareholders and initiate a true sales process,” he said.
Greenspan also offered to pay for at least five Internet/media analysts to meet with Dow Jones on the possibility of staying public and investing in new media opportunities.