Dow Jones to Acquire MarketWatch

Posted on December 3, 2004

Dow Jones & Company announced it has signed a definitive agreement to acquire MarketWatch, Inc., in an all-cash transaction valued at approximately $519 million. The acquisition is expected to be completed in the first quarter of 2005.

MarketWatch is an online provider of business news, financial information and analytical tools. Founded in 1997, the company operates two websites: MarketWatch.com and BigCharts.com. These free, advertising-supported sites serve 8 million unique visitors per month with market news and information. MarketWatch also operates the MarketWatch Information Services group, which is a licensor of market news, data, investment analysis tools and other online applications to financial services firms, media companies, and corporations.

MarketWatch will be integrated with the Dow Jones Consumer Electronic Publishing business, which comprises The Wall Street Journal Online at WSJ.com, other free advertising-supported vertical websites, licensing of content to websites, and The Wall Street Journal Radio Network.

Dow Jones said this acquisition is a natural fit for its services. MarketWatch complements The Wall Street Journal Online network, which provides premium business news to about 3 million unique visitors per month. The Online Journal is the largest paid subscription news site on the Web with more than 700,000 paid subscribers. MarketWatch also extends the reach of the Dow Jones licensing operations.

"MarketWatch is a terrific strategic fit for Dow Jones, extending our reach into a broader and larger audience for online business and financial news," said Richard F. Zannino, executive vice president and chief operating officer of Dow Jones & Company. "It will increase our revenue and earnings growth by enabling us to participate more fully in the rapidly growing market for online advertising. And it's a market we know well and where we can leverage the strength of our brands, content, people, and publishing know-how."