News Corp sells Dow Jones to Fortress Investment
On Tuesday, Rupert Murdoch's News Corp announced that it had sold Dow Jones Local Media Group to a division of Fortress Investment Group. News Corp did not disclose the terms of the deal including its price.
The sale agreement included the former Ottaway newspaper chain. The said newspaper chain consists of eight daily and 15 weekly community papers. The newspapers included the Cape Cod Times in Massachusetts and The Pocono Record in Pennsylvania. On the other hand, Fortress Investment Group also owned GateHouse Media. The latter is a chain of more than 400 community newspaper distributed throughout the US. Fortress would manage Dow Jones Local Media Group.
News Corp acquired Dow Jones in 2007. The former is also the publisher of the Wall Street Journal. Murdoch's move to put the local papers on the block was after financial crisis hit the market that dried up newspaper transactions.
According to Robert Thomson, chief executive of News Corp, said in a statement "We are confident that the papers will prosper under the new owners, but they were not strategically consistent with the emerging portfolio of the new News."