But in yet another sign that no one really wants to buy newspapers, the deal proposal has been abandoned. Since then, no other serious bidders have emerged. Could Murdoch’s noose be tightening? If so, The Wall Street Journal may never be the same again. As one magazine executive who worked under Murdoch puts it, “All I can say to the WSJ is watch out – Murdy isn’t about to pay $5 billion to not have editorial control.”

General Electric Co. and Microsoft Corp. were in discussions in recent weeks to combine Dow Jones & Co. with some portions of GE's NBC Universal, parrying a bid by News Corp., but the two sides couldn't reach an agreement, according to people briefed on the discussions.

Before the idea was abandoned, GE and Microsoft were discussing a competing $60-a-share offer, these people said. One consideration for GE appears to be concern that the unsolicited bid by Rupert Murdoch's company to buy Dow Jones for $60 a share, or about $5 billion, could help News Corp.'s efforts to field a television financial-news channel that would compete with GE's CNBC. Dow Jones has been exploring alternatives to Mr. Murdoch's offer, but those efforts have yet to yield another serious bidder, the people familiar with the matter said. The breakdown of the NBC-Microsoft talks is a further sign that the options for Dow Jones may be narrowing. Dow Jones wasn't involved in the talks, but they came to the attention of directors last week. The discussions raise the possibility that GE may seek another partner. A Microsoft spokesman declined to comment. An NBC-Universal spokesman said, "These were simply exploratory conversations that ended more than a week ago."

Dow Jones's controlling Bancroft family recently said it was open to a possible combination of Dow Jones with another company. Representatives from the family met with Mr. Murdoch last week to discuss issues of editorial integrity for The Wall Street Journal and other Dow Jones properties. Family advisers are currently working on a proposal to structure an editorial board that would help ensure independence for Dow Jones's journalism.

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