Business News
Dow Jones index sold to CME
Feb 10, 2010, 23:48 GMT
New York - The world-famous Dow Jones Industrial Average will change hands for the first time in its history, it was announced Wednesday.
CME Group, owner of the Chicago Mercantile Exchange, has agreed to buy a 90-per-cent stake in the iconic stock index, which gauges the share price of 30 top US companies.
News Corporation, parent company of Dow Jones and the Wall Street Journal, will maintain a 10-per-cent stake and keep the naming rights as part of a joint venture in the index business.
News Corp will get 608 million dollars from CME for the transaction, which is expected to be completed by the end of the first quarter, the two companies said.
Dow Jones will lose control over the index for the first time since it was founded by Charles Dow in 1896, but the company will still have some managerial involvement.
The Wall Street Journal's managing editor, who has had sole discretion over which companies are part of the blue-chip index, will still be involved in the decision making.
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