25 February 2018
Visit www.avoka.com

CME closes in on Dow Jones index business - WSJ

01 February 2010  |  6345 views  |  0 stocks

Exchange operator CME Group is in talks to buy Dow Jones' index business for up to $700 million, according to the Wall Street Journal.

Citing several people familiar with the matter, the paper says Dow Jones has been negotiating the sale of its index business, which manages the flagship Dow Jones Industrial Average, for months.

According to the WSJ, which is published by News Corp-owned Dow Jones, a deal was set to be confirmed last week but has been held up by last minute wrangling over price and terms.

According to Bloomberg, in 2007 CME Group, through the Chicago Board of Trade, paid $74 million for the exclusive use of many Dow Jones indexes. The exchange operator pays a fee every time a contract based on one of Dow Jones' indexes is traded, handing over between $30 million and $35 million a year.

MSCI, which has also held extensive talks about buying the unit, may now take advantage of the impasse, although it had switched its interest to RiskMetrics, which has recently put itself up for sale.

Dow Jones was acquired by Rupert Murdoch's News Corp for around $5.7 billion in 2007. Murdoch's main target was the Wall Street Journal and he has already sold off the company's 33.3% stake in Swiss index provider Stoxx to Deutsche Börse and Six Group for EUR206.1 million in cash.

CME in Line For Indexes Of Dow Jones- WSJ

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

RiskMetrics up for sale - WSJ

RiskMetrics up for sale - WSJ

27 January 2010  |  8713 views  |  0 comments
Hart departs as News Corp shakes up Dow Jones

Hart departs as News Corp shakes up Dow Jones

05 January 2010  |  4903 views  |  1 comments
Interactive Data to buy Online Financial Solutions assets from Dow Jones

Interactive Data to buy Online Financial Solutions assets from Dow Jones

24 November 2009  |  7344 views  |  1 comments
Dow Jones to sell Stoxx stake to Deutsche Börse and Six Group

Dow Jones to sell Stoxx stake to Deutsche Börse and Six Group

12 November 2009  |  8725 views  |  0 comments
Dow Jones adds company news to machine-readable XML data feed

Dow Jones adds company news to machine-readable XML data feed

15 October 2007  |  7660 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.vasco.comvisit www.nextgenbanking.co.ukVisit https://www.capgemini.com

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
12165 views comments | 16 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10520 views 4 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
8889 views comments | 15 tweets | 26 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
8335 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
7949 views comments | 10 tweets | 14 linkedin

Featured job

Basic c.£90K OTE c.£180K plus full benefits pac...
London based

Find your next job