News Corp. Buys Investor’s Business Daily for $275 Million

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Rupert Murdoch’s News Corp., publisher of the Wall Street Journal, agreed to acquire Investor’s Business Daily, adding to its portfolio of business publications.

News Corp. will pay $275 million to buy the financial news and research business from O’Neil Capital Management. News Corp.’s Dow Jones subsidiary will run the business, which was founded in 1984 by William J. O’Neil and has about 130 employees. It will continue to operate as a standalone brand, based in Los Angeles.

Investor’s Business Daily is profitable, with more than 90% of its revenue coming from digital sources, News Corp. said in a statement Thursday. The majority of IBD’s revenue comes from its investor tools, research and analysis products. It has about 100,000 digital subscribers across its platforms, according to News Corp.

IBD, which once operated a daily newspaper that sought to compete with the Wall Street Journal, now publishes a weekly print edition.

What Bloomberg Intelligence Says

“News Corp.’s $275 million deal for Investor’s Business Daily is a disciplined and logical move.... News Corp. has been playing up the profitable Dow Jones unit, which has over 4 million subscribers and 3 million digital-only customers, by separating it last year in its financial disclosure with a view to closing the valuation gap with rival New York Times Co.”

--Geetha Ranganathan, media analyst

Click here to read the research.

IBD has “a unique set of tools that we’re very excited about,” Dow Jones Chief Executive Officer Almar Latour said in an interview, citing its recommendations for investment decisions. “All of that fits well with where Dow Jones is going. We’re really focused on the retail investment community.”

Shares of News Corp., which also owns business publications such as MarketWatch, Barron’s and Mansion Global, rose as much as 2.1% to $26 in New York trading Thursday. The stock is up 44% so far this year and gained 27% last year.

Bloomberg LP, parent of Bloomberg News, competes with News Corp. and IBD in providing financial data and information.

©2021 Bloomberg L.P.

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