News Corp. buys Investor’s Business Daily for $ 275 million

News Corp. Rupert Murdoch has agreed to buy Investor’s Business Daily from O’Neil Capital Management for $ 275 million, continuing the media company’s legacy in digital publishing.

News Corp. he said Thursday that he plans to switch the Los Angeles-based business, which includes the investor’s website, to a subsidiary of Dow Jones, which also publishes the Wall Street Journal, MarketWatch and Barron’s. Investor’s Business Daily, which currently has about 130 employees, will remain a stand-alone brand in News Corp. upon completion of the acquisition. The deal is expected to close in the second quarter.

The purchase comes as an increasing number of individual investors buy on the stock market, which has been in the launch phase since the start of the pandemic.

Founded in 1984 by entrepreneur William J. O’Neil, Investor’s Business Daily has developed proprietary data and research tools to identify stocks with the best performance. The model is based on O’Neill’s investment philosophy.

IBD used to publish daily newspapers, but the company eventually shifted its focus to digital platforms, and the print edition now comes out once a week. IBD has nearly 100,000 digital computer subscribers on its various platforms, which include IBD Live, MarketSmith, Leaderboard and SwingTrader. The private company generates 90% of its revenue and subscriptions from digital offerings, making IBD an attractive show for News Corp., which managed to sell premium digital subscriptions to the Wall Street Journal.

Financial houses News Corp., including the Journal, compete with Bloomberg News, CNBC, Reuters and the Financial Times for an audience of investors.

“IBD will greatly improve our e-expertise in finance, enticing digital coverage, unique tools and high-yield services,” News Corp. CEO Robert Thomson said. “We will be able to cross-sell and sell alongside Dow Jones financial products and provide special insights for well-known business audiences.”

O’Neil, who was born in Oklahoma in 1933, came to Los Angeles during the postwar boom after graduating from Southern Methodist University in Dallas and serving in the U.S. Air Force. His first share purchase was a few shares of Procter & Gamble. He joined the brokerage agency LA Hayden, Stone and Co. In 1958, and five years later he started his own firm, William O’Neil + Co. He established a mutual fund and constantly developed his business.

O’Neil started Investor’s Business Daily in 1984 and later wrote a book, “How to Make Money on Stocks”.

“We are proud to help educate and empower investors so they can make smarter, more profitable investment decisions,” said his son William Scott O’Neil, CEO of O’Neil Capital Management and Investor’s Business Daily. . “We can’t think of a better place than News Corp. and Dow Jones to take Investor’s Business Daily into its next phase of growth and create even more value for our loyal subscribers.”