Cablevision Snags Newsday To Up Ad, Sub Revenue
ADOTAS – In a bid to grow its advertising and local subscription business, Cablevision Systems Corp. beat out media chieftains Rupert Murdoch and Mortimer Zuckerman to buy Tribune Co.’s Newsday.
Cablevision acquired about 97% of Newsday Media Group – which was valued at $632 million in the transaction. Tribune Co. will also get about $18 million when the deal closes, raising the transaction value to $650 million.
The deal includes the newspaper Newsday, Newsday.com, amNewYork, the Star Community Publishing Group and a portfolio of lifestyle publications. The acquisition will allow Cablevision to cross-sell advertising and promote its assets in the New York publications as it faces increasingly stiff competition in its cable, phone and online operations.
Tribune Chairman and CEO Sam Zell said: “This agreement enables us to maximize the value of Newsday and still retain an interest in this valuable asset. 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.”
Cablevision chief executive James Dolan indicated that the Newsday businesses will report to Cablevision chief operating officer Thomas Rutledge.
Cablevision stock was down about 2.12% to $24.44 as of 11:50 a.m.
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