ABSTRACT

In an agreement signed on July 11, 1988, Knight-Ridder Business Information Services Inc. purchased Dialog Information Services from the Lockheed Corporation for $353 million. Industry speculation regarding the sale of Dialog had been widespread for several months, with several prominent information industry corporations reported to be among the ten major bidders. An asking price of $200 million had been initially reported. Dialog’s revenues for 1987 were $98.1 million. Responses to the sale by key Dialog personnel were favorable. According to Roger Summit, President of Dialog, Knight-Ridder indicated that “Dialog will continue as an autonomous activity, and that current operating policies will be continued without disruption.” The commitment to high-quality service would be fully supported by Knight-Ridder, according to Summit. Knight-Ridder, known primarily for its newspaper operations, also controls the electronic information source Vu/Text.