Dow Jones Index up for sale, faces name change

The world’s most famous stock index, the Dow Jones Industrial Average, may get a new owner and possibly a name change after 113 years, if Rupert Murdoch’s News Corporation follows through on selling its stock-index business.

The Wall Street Journal, owned by Dow Jones until its sale to News Corporation in 2007, has reported the company is exploring a sale of the unit.

Goldman Sachs has been hired to evaluate deals that may fetch $US700 million and prompt a new moniker for the flagship index. The Journal says potential buyers are MSCI, a former unit of Morgan Stanley, NYSE Euronext and Bloomberg.

The Dow, a basket of 30 stocks, was.introduced in 1896 by Charles Dow – a precursor version of mostly railroad companies started publishing in 1884 – and was designed to give investors a snapshot at overall market activity.

It has spawned a number of more-focused offshoots, including transportation, real estate, and technology indexes.

The indexes business – which creates and licenses indexes for use on mutual funds, exchange-traded funds and other products – is a relatively stable and profitable unit for Dow Jones amid a period of steep revenue decline in its core newspaper franchise.

The Journal says a name change is far from certain, given its broad name recognition. The story quotes a “person familiar with the matter” as saying that any deal would likely require that the Dow Jones name remain.
 


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7326 0.0010 0.14%
AUD 0.9187 0.0048 0.53%
EUR 0.5978 0.0008 0.13%
GBP 0.5251 0.0019 0.36%
HKD 5.7269 0.0066 0.12%
JPY 80.9430 -0.2510 -0.31%

Commods

Commodity Price Change Time
Gold Index 1333.7 2.710 2018-01-22T00:
Oil Brent 69.0 0.400 2018-01-22T00:
Oil Nymex 63.6 0.200 2018-01-22T00:
Silver Index 17.0 -0.050 2018-01-22T00:

Indices

Symbol Open High Last %
NASDAQ 7338.0 7408.0 7336.4 0.98%
DJI 26025.3 26215.2 26071.7 0.55%