The Wall Street Journal has not decided if it will form a partnership with Fox Business similar to the newspaper's current arrangement with CNBC when that deal ends next year, the Journal's top editor tells Media Matters.
"We haven't decided anything on it," Journal managing editor Robert Thomson said during a brief interview last week. Asked directly if a deal similar to the CNBC arrangement would be of interest to the Journal, he said, "not necessarily."
Since News Corp. purchased Dow Jones in late 2007, speculation has arisen among its employees that the Journal would align itself with Fox Business once the Journal's current agreement for many of its reporters and content to appear first on CNBC ends in December 2012.
A Journal spokesperson declined this week to reveal details of the CNBC arrangement, first forged in 1998, other than to say it ends in December 2012. She stated in an email:
We don't publicly discuss the nature of agreements.
But a source familiar with the agreement who requested anonymity said it includes a content-sharing arrangement in which CNBC receives advanced access to certain financial-related original reporting and data from all Dow Jones business outlets so that CNBC can report it simultaneously.
CNBC also pays a fee to Dow Jones for the content based on ad revenue, according to the source, who said it has averaged some $15 million annually in recent years.
In addition, CNBC has the right of first refusal to have Journal reporters appear on its network to discuss business news before appearing on other networks, including on Fox Business.
When asked if the Journal would forge a similar deal with Fox Business once the CNBC arrangement ends, Thomson said:
"Not necessarily. Because, in part, you look at what's happening with WSJ Live and the amount of video we are doing ourselves. The possible permutations are far more than that presumption allows."
Asked if there could be an outcome where the Journal is not aligned with Fox Business as it has been with CNBC, Thomson again left the door open.
During an appearance in New York Thursday night, Wall Street Journal managing editor Robert Thomson said that former Wall Street Journal Europe publisher Andrew Langhoff did "the honorable thing" by resigning.
During a panel discussion at the City University of New York Graduate School of Journalism -- which included Bloomberg BusinessWeek chairman Norman Pearlstine and Stephen Adler, editor-in-chief of Reuters -- Thomson was asked about recent News Corp. troubles.
Among the issues is the resignation of Langhoff, who stepped down this week following concerns over two articles published about a company with contractual links to the paper's circulation department.
In addition, The Guardian broke more information about the situation, reporting:
The Guardian found evidence that the Journal had been channelling money through European companies in order to secretly buy thousands of copies of its own paper at a knock-down rate, misleading readers and advertisers about the Journal's true circulation.
The bizarre scheme included a formal, written contract in which the Journal persuaded one company to co-operate by agreeing to publish articles that promoted its activities, a move which led some staff to accuse the paper's management of violating journalistic ethics and jeopardising its treasured reputation for editorial quality.
Responding to questions from panel moderator Stephen B. Shepard, dean of the graduate school, Thomson prefaced his statement by saying that "because it's the subject of legal things, one has to be careful about what words one uses."
"But there was the perception of pressure," said Thomson, adding, "The lesson of it is that no matter how far-flung -- and this was a supplement for The Wall Street Journal Europe -- there has to be a very clear line between church and state. That line simply cannot be breached, and creating a circumstance where even the appearance of a breach can take place is unacceptable. And so ... Langhoff did the honorable thing and resigned."
Thomson said that the situation surrounding Langhoff's resignation was "clearly" related to "a circulation agreement which involved bulk sales on the Continent." But he argued that "it's pretty fair to say The Wall Street Journal Europe is not the only newspaper with bulk sales on the Continent."
"But there has to be transparency," added Thomson. "There has to be ... contractual transparency, and there certainly has to be transparency for the reader -- that you cannot pay for play."