Dow Jones Newswires | CME Group Inc. and Dow Jones & Co. have launched the index venture they’d planned in February. CME Group will own
Dow Jones’ stock-indexing business, including the 114-year-old Dow Jones
Industrial Average.
“Together, we expect to create new opportunities for our customers by developing innovative new products and expanding our market data dissemination services to our global network of clients and exchange partners,” said CME Chief Executive Craig Donohue.
CME has a 90% ownership interest, with the rest owned by Dow Jones.
Dow Jones will contribute the business, valued at $675 million, while CME will contribute market data services, valued at $607.5 million, to the joint venture. The venture issued $612.5 million in senior notes due 2018, which will be used to pay $607.5 million to Dow Jones.
CME shares were up 0.4% at $312.20 in after-hours trading, while News Corp.’s class A shares were flat at $14.02.
