By Sarah Rabil and Lynn Thomasson

Aug. 22 (Bloomberg) -- The Dow Jones Industrial Average may get a new name after 113 years, if News Corp. follows through on selling its stock-index business.

The Wall Street Journal, owned by News Corp. since 2007, reported yesterday that the company is exploring a sale of the unit, citing unidentified people familiar with the matter. Goldman Sachs Group Inc. was hired to evaluate deals that may fetch $700 million and prompt a new moniker for the flagship index, the newspaper said. MSCI Inc., a former unit of Morgan Stanley, NYSE Euronext and Bloomberg LP, the parent of Bloomberg News, are potential candidates, according to the Journal.

The Dow Jones Industrial Average, a 30-stock benchmark for the U.S. market referred to as the Dow, was created in 1896 by Dow Jones co-founder Charles Dow. News Corp. Chairman and Chief Executive Officer Rupert Murdoch bought Dow Jones, which also includes the Wall Street Journal and Dow Jones Newswires, in 2007 for $5.2 billion. News Corp. wrote down the value of unit’s goodwill and intangible assets by $2.8 billion in 2008.

“It would be hard to imagine the Dow being called anything else,” said Eric Marshall, who helps oversee $700 million at Hodges Capital Management in Dallas. “It wouldn’t surprise me, given how much the media industry has changed, that someone would want to spin off ownership of the Dow.”

Sybille Reitz, a spokeswoman for Dow Jones, and Teri Everett, of News Corp., declined to comment. Goldman Sachs spokesman Michael Duvally also declined, as did Bloomberg spokeswoman Judith Czelusniak, MSCI spokesman Pen Pendleton, NYSE spokesman Richard Adamonis and Standard & Poor’s spokesman Dave Guarino. Jill Mathers, a spokeswoman for FTSE Group, didn’t immediately return a phone call or e-mail.

‘Clear, Straightforward’

The Dow was first made up of a dozen stocks, including U.S. Leather and American Sugar. General Electric Co. is the only one of the original 12 that’s still in the index today. The measure, which includes Exxon Mobil Corp. and International Business Machines Corp., is intended to “provide a clear, straightforward view of the stock market and, by extension, the U.S. economy,” according to the company’s Web site.

“It’s the 30 largest industrial stocks and it’s been around forever,” Marshall said. “If someone asks you, ‘What is the market doing?’ You say up or down 100 points and you know they’re referring to the Dow without even thinking about it.”

The Dow added 184.56 points, or 2 percent, to 9,505.96 this week. It closed at the highest level since Nov. 4 yesterday and has rallied 8.2 percent in 2009.

130,000 Indexes

Dow Jones, which runs more than 130,000 indexes, is also part-owner of the Dow Jones Stoxx 600 Index, a benchmark for European equities. The business may be worth about $700 million, based on its 2007 performance and MSCI’s valuation, the Wall Street Journal said. The process could result in a joint venture or other combination, the newspaper reported. Goldman Sachs also advised Dow Jones on the sale to News Corp. in 2007.

Founded in 1882, Dow Jones began by delivering handwritten bulletins of stock and bond trading news in New York. An afternoon newsletter started the next year and went on to become the Wall Street Journal.

News Corp. and its subsidiaries compete with closely held Bloomberg LP in providing financial news and information.

Dow Jones has been talking to potential buyers about the sale of its stock-market indexing business, which includes the Dow Jones Industrial Average, The Wall Street Journal reported on Friday.

The Wall Street Journal, in its online edition, reported that the process is being run by Goldman Sachs, and could result in a sale, joint venture or some other type of arrangement. The report cited people familiar with the matter.

Reached by CNBC, Dow Jones would neither confirm nor deny the Journal's report. However, a spokesperson pointed out that rumors of a possible Dow Jones Indexes sale have circulated in the past, even prior to the acquisition of Dow Jones by News Corp in late 2007.

The indexes business creates and licenses indexes for use on mutual funds, exchanged-traded funds and other products.The 30 stocks, known as the Dow Jones Industrial Average, make up the world's best-known stock market indicator.

News Corp purchased Dow Jones for $5.7 billion. The company ended up writing down $2.8 billion of the value of Dow Jones this year. News Corp also owns the Wall Street Journal.

The average was first introduced in 1884 by Charles Dow, Edward Jones and Charles Bergstresser. It was set up to give investors a quick look at overall market activity. It spawned a number of more focused offshoots, including transportation, real estate, and technology indices.

Spokespersons from Dow Jones, News Corp and Goldman Sachs all reportedly declined to comment.