But these aren’t the drivers of any potential deal; reputation is. The Wall Street Journal has respect, and Mr. Murdoch is a tabloid journalist and incendiary broadcaster. What may play out, in fact, could be a public-auction-like pricing of Mr. Murdoch’s reputation. He may end up paying an enormous premium to get what he wants because of who he is.

In most cases, a premium would be paid to the seller for the value of intangible assets, such as brand equity or consumer confidence. This time around, the premium may actually be a penalty fee to the purchaser for past blemishes (need we revisit News Corporation’s “unbiased” view of things, or the confidence it placed in the likes of Judith Regan?).

As Louis Ureneck, chairman of the journalism department at Boston College, said in today’s New York Times, “The Bancroft family now finds itself firmly placed between the rock of Murdoch’s reputation and the hard place of his generous buyout offer.” What price to buy – or sell – respect?

Executives like Mr. Murdoch, and fund investors and marketers everywhere, would be well-served by starting to manage their intangible assets with as much care as they manage financial and hard assets. As the Financial Times recently noted, “As developed economies switch from manufacturing to services and tangible to intangible products, brands make up a growing proportion of financial value. The proportion of intangible assets to shareholder value at Fortune 500 companies has steadily risen, from about 50 per cent in 1980 to 70 per cent today.”

If the objective of any potential transaction between Murdoch & Co and Dow Jones is to serve shareholders and drive value, the potential negative impact – and returns – of the purchasing brand must be considered and reflected in pricing. It just may be that Mr. Murdoch’s own reputation is too expensive for even him to buy his way out of.

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