WSJ Europe responds to The Guardian

London: The Guardian newspaper has reported that it had seen emails and documents showing that The Wall Street Journal funneled money through third parties to a company that was buying up copies of the Journal and boosting its European circulation.

The Guardian did not make the emails and documents public but, if its description is accurate, the Journal was effectively buying its own papers and inflating its circulation figures, something that could allow it to charge advertisers extra.

[caption id=“attachment_106493” align=“alignleft” width=“380” caption=“The Wall Street Journal Europe’s publisher, Andrew Langhoff, resigned Tuesday over its links to the Dutch company. Getty Images”] [/caption]

The Guardian claimed that the Journal had asked intermediaries to make payments to the Netherlands-based Executive Learning Partnership (ELP), which at the time was buying thousands of copies of the Journal every day at deeply discounted prices.

Such discounted sales are not unusual in the newspaper business and the Guardian and the Journal both say that the purchases by ELP were approved by the Britain’s circulation watchdog.

However, the Guardian alleges that the Journal was indirectly sponsoring the purchase of its own papers by urging third parties to pay ELP.

The Guardian also said the Journal promised to publish three stories based on ELP research. The Guardian said two such stories were then published without any warning that the articles were the product of a business deal.

The Wall Street Journal Europe’s publisher, Andrew Langhoff, resigned Tuesday over its links to the Dutch company. Publisher Dow Jones said that its links to the ELP “could give the impression that news coverage can be influenced by commercial relationships.”

In its statement, Dow Jones said Langhoff’s resignation was because of a “perceived breach of editorial integrity” not because of circulation programs.

The company reiterated the assertion made in a previous statement that the circulation deals were “of poor appearance” and that it had since cut ties to the third parties involved.

But it insisted that, while “admittedly complex,” the deals were still legitimate.

Wall Street Journal Europe (WSJE) Statement of Response to the The Guardian

The Guardian’s inflammatory characterization of WSJE’s former ELP circulation program is replete with untruths and malign interpretations.

Andrew Langhoff resigned because of a perceived breach of editorial integrity, not because of circulation programs, whose copies were certified by the ABC UK.

The Guardian mischaracterizes a former employee as a “whistleblower.” In fact, that employee was first investigated by the company because of concerns around his business dealings.

WSJE circulation programs were fully disclosed and certified.

The practice of sponsored distribution to business schools and universities is common in the industry and clearly identified in all WSJE publisher statements.

ELP was paid for legitimate services rendered; however, the manner in which they were paid was admittedly complex but nevertheless legitimate.

As we’ve stated, while the copies associated with ELP were legitimate and appropriate, we were not comfortable with the appearance of the programs and no longer have relationships with any of the third parties directly involved in these agreements.

AP