Newspaper article THE JOURNAL RECORD

Dow Jones to Sell Markets, Indepth Data

Newspaper article THE JOURNAL RECORD

Dow Jones to Sell Markets, Indepth Data

Article excerpt

NEW YORK (Bloomberg) -- Dow Jones will sell its unprofitable financial data unit Dow Jones Markets, which includes Oklahoma City- based Indepth Data, to Bridge Information Systems for $510 million in cash and stock.

Founded in 1984, Indepth Data was purchased by Dow Jones Markets on June 17 for $23.5 million. Indepth Data, which has about 140 employees in Oklahoma, supplies both real-time and historical information to analysts on tens of thousands of fixed-income instruments in the corporate bond and agency markets.

The terms of the agreement call for fast-expanding Bridge to pay $360 million in cash and $150 million in five-year, convertible preferred stock for the unit, formerly known as Telerate. Bridge is owned by Welsh, Carson, Anderson & Stowe, a closely held investment firm. With the sale, Dow Jones sheds a money-losing unit that led it to take a $922.5 million charge for the fourth quarter to write down the value of its initial $1.6 billion purchase of Telerate, analysts said. What was once considered a natural extension of its Wall Street Journal newspaper suffered from lagging technology and intense competition, analysts said. "At this point one could say that if they got anything for it, they came out ahead," said John Morton, an independent analyst who follows the newspaper industry. Dow Jones will take a "significant" charge at the time of the transaction's closing, expected in the second quarter. Since Dow Jones carried the unit at a book value of $550 million, the charge will be at least $40 million, said a person familiar with the situation. Company spokesman Richard Tofel said the size of the charge wasn't determined yet. Dow Jones Newswires, the company's financial news service, will remain under the control of Dow Jones, although it will be available to Bridge customers. …

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