GE, Pearson Bail on Bid for Dow Jones

CNBC, Financial Times parent companies back away, clearing path for Murdoch
By M. Morris,  Newser Staff
Posted Jun 21, 2007 1:32 PM CDT
General Electric light bulbs on display at a supermarket in Denver in this April 13, 2006 file photo. General Electric Co. on Friday, April 13, 2007 reported first-quarter earnings of $4.5 billion, up...   (Associated Press)
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(Newser) – General Electric and Pearson may yet work out an arrangement that takes advantage of their business-media assets, but their plans don't involve Dow Jones. The companies said today they won't pursue a deal with the Wall Street Journal publisher, brightening the outlook for News Corp.'s $5 billion offer, Pearson's Financial Times reports.

Pearson's CEO informed her employees that talks about melding GE's CNBC, the FT, and Dow Jones' stable of assets had ended, saying the company "didn’t see that combination stacking up." The Dow Jones board's decision to take over negotiations with Rupert Murdoch may have been a factor, but one analyst attributes the course change to "simple logistics," Bloomberg reports.