CNBC’s David Faber broke the story on May 1 that News Corp. (NYSE:NWS) had offered $60 a share for Dow Jones (NYSE:DJ) and now he is reporting that the deal is done. Faber’s sources tell him the definitive agreement has yet to be signed and that likely will happen tonight. One holdup: totaling the substantial fees that have been incurred by the Bancrofts and figuring out how much News Corp. will pay. Faber said it’s been described to him as a “fee-ding frenzy” on the part of the Bancrofts; pay my fee, get my vote. More to come.

Update: Now multiple reports that enough Bancroft shares have gone News Corp.’s way to make the deal happen ...
WSJ says 32 percent of the shares will be voted in favor “according to people familiar with the matter. ... News Corp. was hoping to collect even more votes from Bancroft family members, as a way of solidifying its majority and demonstrating to the broader public that it has a mandate from the family to take control of the company.”

Reuters: With an odd photo illustration showing the New York Post masthead over the Journal, Reuters quotes an unlikely DJ exec as its source: John Prestbo, editor and executive director of Dow Jones Indexes, citing an internal company memo, told reporters in Chicago “the Bancroft family has accepted” and “will be part of News Corp.”

What’s next? The News Corp. board meets at 4 p.m. this afternoon. The DJ board is slated to meet this evening. Meanwhile, DJ’s share price is making up ground rapidly, up 12 percent at midday to $57.93.

Update II: WSJ: By late afternoon Tuesday, News Corp.’s offer had received support from Bancroft family members holding 37.4 percent of the voting power, more than half of the family’s 64.2 percent total voting power. That plus the public shares likely to vote for the deal provide the comfy cushion News Corp. sought. Look for a shareholder vote before the end of 2007.

Update III: The deal has been approved by the boards of both companies, which met separately over the past few hours, reports WSJ again...the two companies are expected to sign a merger agreement and issue statements in the next few hours.