Telerate: a burden for Dow Jones; troublesome unit worries investors
Article Abstract:
Investors are concerned about the sagging revenues of Telerate Inc, an acquisition of the information group of Dow Jones and Co. Although the parent company earned $23.8 million on 3rd qtr 1990 revenues of $408.5 million, a decline in domestic revenues on the part of Telerate helped push overall information group profits down 36 percent for the most recently reported quarter. Telerate provides on-line stock quotation information through installed terminals at the locations of 90,000 subscribers, in addition to customers who purchase information from the Dow Jones subsidiary to run on their own systems. An eight percent drop in the number of installed terminals makes some analysts doubt if Telerate can return to the high-growth track. Officials at the firm hope that a pending expansion into the foreign exchange trading system will restore Telerate to profitability.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1990
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Dow Jones bids for rest of Telerate
Article Abstract:
Dow Jones & Co offers $576 million for the part of Telerate Inc that is still in public hands. Dow Jones already owns 67 percent of Telerate, which is a rapidly expanding financial information service. Dow Jones's $18-a-share offer represented a premium over Telerate's closing price on Wed, Sep 20, 1989, when the stock closed at $15.125, but shares were quickly bid up on Thurs, Sep 20, closing at $20.375 on the New York Stock Exchange. Telerate's prospects are said to be improving because of expansion outside the US. Since its creation in the 1960's, Telerate has drawn ahead of rivals in delivery of government bond quotations. Telerate earned $91 million in 1988 on revenues of $440 million.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1989
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Telerate withdraws ad critical of Dow Jones bid
Article Abstract:
Telerate Inc prepares an advertisement denouncing Dow Jones and Co's acquisition bid to run in the Wall Street Journal but withdraws the ad before publication. Dow Jones wants to acquire shares it does not own for $18 a share, or $576 million, a price Telerate management thinks is too low. The advertisement urges Telerate shareholders not to sell shares to Dow Jones. No one at Telerate would explain why the ad was withdrawn. Dow Jones is trying to place more emphasis on the electronic delivery of financial information, and the bid to acquire Telerate is an important part of Dow's plans. Telerate management has been resisting Dow's bid since Sep 20, 1989. The offer will expire on Nov 3.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1989
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