Popular technology site AllThingsD has been connected to Dow Jones, a subsidiary of News Corp., for some time. But sources indicate that they might be considering a split from the media company when their contract deadline hits at the end of December.
News Corp. has lost a great deal of support after a series of scandals that included mass wiretapping and the hacking of the phone of a murder victim by employees. The scandal grew and grew in the United Kingdom in particular, with it becoming clear that even the country’s police might have been acting in an inappropriate manner.
In the wake of anger, Rupert Murdoch announced that his company would be broken off into two factions, with one dedicated to media and one to publishing. Since that decision took effect last June, quite a few changes have been made in their operations.
With AllThingsD reaching the end of their contract, they have to decide before the end of the year whether to renew it with News Corp, or jump ship. The news isn’t official yet, but it looks like they are going to be taking the dive.
Sources say that investment firm Code Advisors has been helping AllThingsD seek out outside financial support. Smelling blood in the water, funding offers have been made by some big names like Comcast, Bloomberg and NBC. No word yet on which of the offers might be the most likely.
When asked why they were making the decision to go with a new investor, co-executive editor Kara Swisher said it was “not complex”.
“Walt [Mossberg] and I are interested in taking the online journalism and conference efforts we have been successful at building over the last 12 years and expanding them. There are lots of ways to do that, and we are thinking about the best way to evolve what we believe is an even bigger opportunity in the years ahead.”
Translation: News Corp. isn’t a good place to place your eggs and they are getting out at the first available opportunity. I suspect we will be seeing a lot more of that over the coming year, as people reach the end of their contracts and decide to distance itself from a company with a terrible reputation that just keeps getting worst.
It might also be a sign that talks have not gone well, and the conditions of AllThingsD remaining signed with News Corp. are being refused by Dow Jones. Either way, expect the announcement in the coming months of a major change from the tech news gurus.
Source: Fortune
