* German/Swiss partners pay $301.9 mln for DJ's 1/3 stake
* DJ could get another 29 mln euros if performance good
* Equity-financed deal set to close in Q1 2010
* Future of DJ Indexes business in flux - WSJ
(Recasts, adds further details, background)
By Ajay Kamalakaran and Michael Shields
BANGALORE/FRANKFURT, Nov 12 News Corp's (NWSA.O)
Dow Jones & Co Inc is selling its stake in index provider Stoxx
Ltd to Germany's Deutsche Boerse AG (DB1Gn.DE) and Swiss partner
SIX Group for $309.1 million in cash, the companies said on
The deal, a sign that Dow Jones may be looking to exit the
index business, includes a payment of 132.1 million euros
($197.8 million) for Dow Jones's one-third stake in Stoxx and 74
million euros for intellectual property rights acquired by
Stoxx, the German stock exchange operator said on Thursday.
"This is the result of a strategic evaluation of Dow Jones'
index businesses," Dow Jones Chief Executive Les Hinton said in
In August, a source familiar with the matter told Reuters
that Dow Jones was in the early stages of exploring a sale of
its stock market index business, which includes the Dow Jones
industrial average .DJI. [ID:nN2373705]
"There will be the opportunity for Dow Jones & Co to earn up
to a further 29 million euros depending on business performance,
with any payment to occur by mid-2011," Deutsche Boerse said.
Deutsche Boerse, SIX and Dow Jones had each held a one-third
stake in Swiss-based Stoxx. After the sale, Deutsche Boerse will
own 50 percent plus one share and consolidate Stoxx results.
The equity-financed deal is expected to close in the first
quarter of next year, Boerse said.
SIX Group and Deutsche Boerse intend to set up a new entity
to perform index calculations, with SIX Group owning 50 percent
plus one share, it added.
DJ EXITING INDEX BUSINESS?
The Wall Street Journal, citing people familiar with the
matter, said on Thursday the index business contributes about
$90 million in annual revenue to Dow Jones.
The future of the core Dow Jones Indexes business remains in
flux, the paper said, citing the sources.
Rupert Murdoch's News Corp bought Dow Jones in 2007 for $5.7
billion, but since then he has come under criticism for paying
such a hefty price for a publishing company whose businesses
have suffered from the sharp drop in ad sales.
Earlier this year, News Corp wrote down $2.8 billion in Dow
Industry analysts never felt the company's index business
was much favoured by Murdoch, a passionate backer of newspapers
and one of the best-known media moguls.
Indeed, a number of analysts expected him to consider a sale
of the index business soon after striking the deal for Dow
Anchored by the Dow Jones industrial average, the best-known
measurement of U.S. stocks, the company's indexes business
creates and licenses trading indexes.
Potential buyers for the business could include McGraw-Hill
Cos MHP.N Standard & Poor's, Russell Indexes, MSCI Inc
MXB.N, Bloomberg, Pearson Plc's (PSON.L) Financial Times and
Thomson Reuters Corp TRIN.O (TRI.TO) TRIL.L. (TRI.N).
(Reporting by Ajay Kamalakaran in Bangalore and Michael Shields
in Frankfurt; Editing by Andy Bruce)