Newsweek: Murdoch’s Last Laugh
Just a year after buying The Wall Street Journal, the press rapscallion has revitalized the fusty paper.
Johnnie L. Roberts
NEWSWEEK
Dec 15, 2008
....After his News Corp.'s $5 billion acquisition of the (Wall Street)Journal's parent, Dow Jones, (Rupert) Murdoch has jettisoned longstanding traditions of the paper. Operating through his editor in chief, Robert Thomson — a worldly, unsentimental Aussie — Murdoch has transformed one of the world's most specialized publications into a more general, fuller account of the news beyond the business world, especially in politics and international affairs. By expanding the Journal's bull's-eye, Murdoch is fulfilling a pledge to compete head-to-head with The New York Times — for readers and for advertisers. It's an evolution that's been showcased by the Journal's coverage of the confluence of a historic presidential election and a national economic meltdown.
Murdoch's new regime has accelerated other changes, relaunching the Journal's Web site and implementing a possibly historic restructuring of Dow Jones's entire news-gathering operation, including its news wires and WSJ.com. At a time when other print media (including the Times) are cutting back — reducing staff, eliminating sections and warning there's more to come — Murdoch's commitment to growth and investment are a dramatic counterpoint. Whatever else one may think of the 77-year-old's splashy journalistic sensibilities — and there are plenty of traditionalists who don't love the new Journal — few in the media business aren't impressed that Murdoch is at least trying to revitalize and extend an old-media brand. "The New York Times has been regarded as the best newspaper in the world," says Dow Jones CEO Leslie Hinton, a veteran Murdoch executive. "That's a reputation we don't believe is deserved. We're now a real alternative."
So far, the results are mixed, susceptible to different interpretations and haven't immunized parent News Corp. from the pounding that all media stocks are absorbing this year. The Journal is drawing more readers and advertisers, including coveted luxury brands. Newsstand sales have soared by more than 20 percent since the economic crisis. Dow Jones is looking to add color capacity, according to a company publishing executive who isn't authorized to discuss the subject. WSJ.com now draws more than 20 million unique visitors per month, and enjoys the enviable distinction of a dual stream of revenues from subscribers and advertisers. But it's unclear whether the growing print and online audiences are directly linked to Murdoch's overhaul. Maybe it's just inherent reader interest in two galvanizing news stories. In any case, the Journal's popularity has yet to boost overall profitability at Dow Jones. In its latest fiscal quarter ended Sept. 30, News Corp. blamed Dow Jones for a $4 million reduction in pretax profits of its global newspaper and information segment.
Still, as a result of the Journal's industry-defying growth and News Corp.'s investments, Murdoch finds himself basking in changing sentiment. The Journal newsroom has embraced him as a savior. That was unimaginable in 2007 during the tumultuous eight months between Murdoch's initial offer and the final acquisition — a corporate drama that dominated the financial press....Fearing the worst from the individual long regarded by the media establishment as a barbarian within its midst, some Journal reporters desperately, and fruitlessly, sought a white knight. But they now see "he's not burning, pillaging and firing" like the industry's other top publishers, including the Times, says a former top editor. "Everything Rupert said he wanted to do, he's trying to do." Nor is there any evidence he's interfered editorially based on any political predilections or business agendas, as many journalists feared....
http://www.newsweek.com/id/171904/output/print
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