| NEW YORK
NEW YORK Dow Jones & Co, recently bought by
Rupert Murdoch's News Corp, is ending an agreement of more than
40 years to carry news from the Associated Press after the AP
said it wanted more money.
Instead, Dow Jones Newswires will run news from Agence
France-Presse, a French news service.
The AP and Dow Jones failed to agree on a price after more
than a year of negotiations, AP Chief Revenue Officer Tom
Brettingen said on Tuesday.
"We did not believe we were being adequately compensated
for the use of our content on DJ Newswires," Brettingen said in
a statement. "We weren't able to resolve that with DJ, so we're
going our separate ways."
Dow Jones, which Murdoch's News Corp bought for $5.6
billion three months ago, said Dow Jones Newswires would
distribute general and political news from Paris-based Agence
France-Presse and that it would expand editorial staff.
The AP and Dow Jones started talking about their
arrangement more than a year ago, before Murdoch said that he
wanted to buy Dow Jones, Brettingen said in an interview.
Brettingen and Dow Jones declined to say how much Dow Jones
paid the AP and how much more the AP was seeking.
The Wall Street Journal, Dow Jones's flagship newspaper,
still will run AP stories, as will the Factiva online news
archive, which Dow Jones also owns.
The company said the moves were "part of Dow Jones's
broader strategy to invest in its global financial news
An internal Dow Jones memo to staff obtained by Reuters
said that negotiations with the AP were unsuccessful and that
AP had decided to end the deal, which has included sharing
offices and close integration.
Dow Jones will begin shuffling employees out of bureaus
where it shares space with the AP, Brettingen said. He said he
did not know the total number of employees affected.
"We will work with AP to ensure orderly transitions of our
staff out of AP offices, and off the AP network and payroll,"
Neal Lipschutz, senior vice president and managing editor, said
in the Dow Jones memo.
The AP, which is based in New York, is a cooperative that
is owned by its 1,500 daily-newspaper members. The AP in recent
months has been reorganizing its bureaus and undergoing other
changes as it expands internationally and seeks new revenue
sources beyond its traditional base.
Many of its member newspapers, meanwhile, are suffering
from a steady fall in advertising revenue.
Dow Jones Newswires competes with Reuters Group PLC in
delivering financial news. London-based Reuters, which is being
acquired by Canadian electronic publisher Thomson Corp in a
deal scheduled to be completed on April 17, provides financial,
general and political news from around the world.
The AP has had a deal with Dow Jones since 1967, an AP
(Additional reporting by Philipp Gollner in San Francisco
and Peter Henderson in Los Angeles; Editing by Gary Hill)