NEW YORK - Dow Jones, the global provider of news and business information, has announced an expansion of its ownership stake in Ripjar, a company specializing in data intelligence software. This move signifies Dow Jones's commitment to the risk and compliance sector, marking the latest in a series of strategic investments aimed at reinforcing its position as a leading information service provider.
Ripjar, known for its innovative technologies designed to safeguard financial institutions and businesses from threats such as money laundering and cybercrime, has been in partnership with Dow Jones since 2018. Together, they offer advanced risk screening and monitoring solutions to a vast compliance customer base. Dow Jones initially entered into an equity investment with Ripjar in 2023.
Almar Latour, CEO of Dow Jones and Publisher of The Wall Street Journal, stated, "Our increased investment in Ripjar helps Dow Jones in serving the growing global Risk and Compliance community." He emphasized the company's mission to provide trusted journalism, data, and analysis to inform decision-making in an intricate global economy.
Joel Lange, Dow Jones's executive vice president and general manager of Risk & Research, is set to collaborate with Ripjar's newly appointed CEO Tom Obermaier and majority investor Long Ridge Equity Partners. The focus will be on expanding Ripjar's international operations and enhancing support for both new and existing customers in the complex compliance landscape.
This investment underscores Dow Jones's ongoing innovation efforts, following its earlier acquisition of A2i Systems, an AI-powered fuel pricing solutions leader, to bolster its energy business and drive innovation across its portfolio.
The investment aligns with a period of rapid growth for Dow Jones Risk & Compliance, which reported a 16% year-over-year increase in revenues for the fiscal year 2024, nearing $300 million. The division offers integrated technology solutions and due diligence services for managing regulatory and reputational risk.
Dow Jones, a division of News Corp (NASDAQ:NWSA), is home to various prominent publications and products, including The Wall Street Journal and MarketWatch. Ripjar, founded by former members of the UK's Government Communications Headquarters (GCHQ), provides software that utilizes automation, AI, and data visualization to tackle risk and security management challenges.
The details of this investment are based on a press release statement from Dow Jones.
In other recent news, News Corp reported record profitability in its fourth quarter of the fiscal year 2024. The company's revenues increased by 6% to nearly $2.6 billion, while profitability rose by 11% to $380 million. The digital real estate services segment saw a 21% revenue increase, Dow Jones grew by 4%, and HarperCollins' EBITDA rose by 250%.
News Corp also announced a partnership with OpenAI, indicating plans for digital expansion and cost efficiencies in fiscal 2025. However, the company acknowledged challenges in the U.K. digital advertising due to platform algorithm changes.
In other developments, a stockholder proposal has been submitted for consideration at the upcoming 2024 Annual Meeting of Stockholders, suggesting a recapitalization plan to eliminate News Corp's dual-class capital structure. Investment firm Starboard Value LP has also called for News Corp to eliminate its dual-class share structure, arguing that the current structure does not serve the best interests of shareholders. These are the latest developments in the company's ongoing efforts to navigate the evolving media landscape.
InvestingPro Insights
Dow Jones's strategic investment in Ripjar aligns with its strong financial performance and market position. According to InvestingPro data, News Corp (NWS), Dow Jones's parent company, has shown impressive growth with a 41.48% price total return over the past year. This robust performance is reflected in the company's current market capitalization of $16.99 billion.
The company's revenue growth of 5.92% in the most recent quarter underscores its ability to expand its business lines, including the Risk & Compliance division that has seen significant growth. With a gross profit margin of 50.41% for the last twelve months, News Corp demonstrates strong profitability, which supports its strategy of investing in innovative companies like Ripjar.
InvestingPro Tips highlight additional strengths:
1. News Corp has a high return on invested capital, indicating efficient use of funds in growth initiatives like the Ripjar investment.
2. The company's earnings per share have shown strong growth recently, which may be partly attributed to successful strategic investments and expansions.
These insights are just a sample of the valuable information available on InvestingPro. Subscribers can access over 20 additional tips for News Corp, providing a comprehensive view of the company's financial health and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.