Agoracom Blog

Biz News Companies Are Hot – Reuters Up Over 25% On “Approach”

Posted by AGORACOM at 5:48 AM on Friday, May 4th, 2007

Good morning to you all.  If you aren’t yet convinced that the web is dominating small-cap investing, then you need to explain to me why both Dow Jones and now Reuters are being courted for acquisition in the same week.

Dow Jones received a $5 Billion offer earlier this week and – just this morning – Reuters is up over 25% after announcing it has received a “3rd party approach”.

Whether either company ends up being acquired is inconsequential.  The fact of the matter is that two leading business news firms are being hunted and it has nothing to do with real-world circulation. Why? Reports as of May 1 announced that newspaper circulation and readership is plummeting (2.1% and 3.1% respectively over the last 6 months)

As such, the courting of Dow Jones and Reuters is primarily about securing their online properties today for a future that is going to be strictly digital. 

Embrace it, dive into it, do whatever you have to do to put yourself ahead of the curve.  Whatever you do, don’t deny it. 


Comments are closed.