The Dow Jones Industrial Average could be getting a new name. Dow Jones
has signed on Goldman Sachs
to explore a sale of its stock-market indexing business, according to a Wall Street Journal report
. The paper reported that Goldman has met with potential buyers but did not provide any names of bidders.
It did point to Morgan Stanley's MSCI Inc.
unit as a logical buyer. The Dow Jones indexing arm could be worth as much as $700 million based on the valuation of MSCI of seven times revenue.
Earlier this year News Corp. wrote down $2.8 billion from its valuation of Dow Jones. News Corp. purchased the publisher for $5.3 billion in late 2007.
While it is possible that the unit could be sold, the publisher is also reportedly looking a joint ventures or a "different combination."
The Dow Jones Industrial Average (DJIA) remains the benchmark of benchmarks for the stock market, despite a shift by professional investors to relying on the broader Standard & Poor's 500 index.
A rebranding could be the event that enables to S&P 500 to finally overtake the DJIA in the popular mind as well.
To prevent that from happening, Dow Jones is reportedly insisting as a part of any deal that the buyer retain the name for the index.
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