Cablevision to Acquire Newsday for $650 Million

Authored by Mark Hefflinger on May 12, 2008 - 7:40am.

Bethpage, N.Y. - Cablevision (NYSE: CVC), a provider of cable TV and broadband services in the New York area, announced on Monday that it will acquire a 97% stake in Newsday Media Group from media company Tribune (NYSE: TXA) for $650 million. Tribune will retain a 3% stake in the company. Cablevision's winning bid beat out other suitors that included News Corp. (NYSE: NWS), which withdrew its $580 million bid on Saturday, and New York Daily News owner Mort Zuckerman.

Newsday is one of the nation's largest daily newspapers, with an average weekday circulation of 335,000.

The company also operates Newsday Interactive, which claimed 3.2 million unique monthly visitors in March, plus the Star Community Publishing Group of weekly shoppers, and Island Publications' portfolio of lifestyle magazines.

Cablevision said the partnership "will add a complementary print and online media group with diverse, quality content to Cablevision that generates substantial operating cash flow and that creates opportunities to grow Cablevision's advertising, subscription and content-based businesses."

"This agreement enables us to maximize the value of Newsday and still retain an interest in this valuable asset," said Tribune chairman and CEO Sam Zell.

"The newspaper has a unique circulation base and a tremendously strong local brand -- I expect them to grow and flourish as a result of this new partnership."