The Blackstone Group Could Not Match Rupert’s DJ Bid

September 10, 2007


Steven Schwartzman incites dangerous passions — and obvious counterspin — in the minds of people who matter in this economy. He is in the zeitgeist. Everyone who is anyone has an opinion — often explosive — of Schwartzman’s turn of the milennium granstanding (The Brilliant Michael Gross coined the neologism “Schadenschwarzmanfreude“). He’s a cypher, like Driser’s Financier. Some might argue that Schwarzman’s ScadenFrom PEHub:

“In the weeks following Rupert Murdoch’s bid for Dow Jones, I got asked a few dozen times if a private equity firm would step in to play white knight. ‘No,’ I replied, because of the dizzying price point. Moreover, private equity firms are best when buying a strong product that has been underperforming due to operational problems. Dow Jones had been underperforming because of irreversible media market trends (read: death of newspapers), and Murdoch was far more qualified to enact a new media turnaround than were almost any private equity firms (no matter how loathsome some of his other media endeavors may be).

“But it does seem that at least one private equity firm made an inquiry: The Blackstone Group.

“Dow Jones revealed in an SEC filing that it approached, or was contracted, by 20 potential buyers in addition to News Corp. Among them was a ‘private investment company’ – which had previously indicated an interest in acquiring Dow Jones. That suitor was The Blackstone Group, as reported earlier today by The Wall Street Journal (natch).”


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