When it comes to reporting, the Wall Street Journal knows its business, but when it comes to running its own financial empire, the Journal's owner, Dow Jones & Co., has fallen woefully short. Despite a banner year at the paper, the 115-year-old company announced last month that it will register its first loss since going public 34 years ago. The culprit: Dow Jones Markets, the company's crippled financial-information unit (formerly called Telerate), which has been beaten badly by more sophisticated rivals such as Reuters and Bloomberg. Recently, the company scaled back an ambitious $650 million rescue plan and began firing senior...

