News Corp. (NYSE: NWS) has reached a tentative deal to buy Dow Jones & Co. Inc., parent company of the Wall Street Journal, (NYSE: DJ) for $5 billion, the Journal reported late Monday.
The Dow Jones board will meet on Tuesday to consider the $60-a-share offer after negotiators reached an agreement in principle Monday afternoon.
Dow Jones shares were up 50 cents, or 0.88 percent to $57.45 in premarket trading Tuesday after closing up 54 cents to $56.95 on the New York Stock Exchange yesterday.
The Wall Street Journal said representatives told News Corp. that the Bancroft family's position on the deal is too close to call, citing a person who spoke to him.
The family's lead trustee, Michael Elefante, plans to present the agreement to all family members at a meeting scheduled for Thursday. A sale could be possible as early as next week, the Journal said.
Approval from the Dow Jones board would also give News Corp. owner, Rupert Murdoch several other properties, including Dow Jones Newswires and Barron's publications.