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In July 2007, News Corporation entered into an agreement to purchase all of the outstanding shares of Dow Jones and Company for $57 per share.
In July 2007, News Corporation entered into an agreement to purchase all of the outstanding shares of Dow Jones and Company for $57 per share. Immediately prior to the News Corporation bid, the shares of Dow Jones traded at $32 per share. The number of outstanding shares at the time of the announcement was 77 million. The book value of interest-bearing liabilities on the balance sheet of Dow Jones was $1.42 billion.
- Estimate the cost of this acquisition to the shareholders of News Corporation
- What value did News Corporation place on the control of Dow Jones and Company?
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