Bancroft Factor

Dow Jones (NYSE:DJ) Board has kicked the deal over to the shareholders (read Bancrofts)with their recommendation for approval. The board is now off the hook. No one else has made an offer that means anything. Bancrofts have checked the market personally and must now know without a doubt that no one else wants to trump Rupert Murdoch's News Corp (NYSE:NWS)offer. Therefore price is no longer a viable reason to refuse.

The Bancrofts have long basked in the prestige of ownership of Dow Jones, Wall Street Journal, Barrons and other properties. It has been explained to them, long before Rupert Murdoch's offer was made, that Dow Jones needs to be fixed. The Bancrofts have been slowly but surely allowing the legacy asset to whither away. What have they added?

If the Bancrofts refuse Rupert Murdoch's deal, what will they counter with? Currently they are a curiosity. Their ownership is inherited through many generations. Current family members have not provided any substantial leadership in solving any of Dow Jones problems. Refusing the offer would contain the responsibility of providing a credible vision for the future. If they are concerned about journalistic freedoms and standards at a financial publication, they need to be just as concerned about creating wealth and managing viable businesses.

The question becomes: Lead, Follow or Get Out Of the Way. They have not led. They do not appear to follow. They need to get out of the way.