Chicago is My Home

12
May

Cablevision to Purchase Newsday From Chicago’s Tribune Co. For $650 Million

Author: Adam Fendelman, Category: Business

CHICAGO – Cablevision Systems Corp. will buy the Long Island, N.Y. newspaper Newsday from Chicago’s Tribune Co. for $650 million, the companies announced on Monday.

“This agreement enables us to maximize the value of Newsday and still retain an interest in this valuable asset,” Tribune Co. CEO Sam Zell said in a Monday Chicago Tribune report. “The newspaper has a unique circulation base and a tremendously strong local brand. I expect them to grow and flourish as a result of the new partnership.”

Cablevision beat out News Corp. CEO Rupert Murdoch and New York Daily News owner Mortimer Zuckerman (each of whom offered $580 million for the daily).

The deal returns Newsday to local ownership. The Dolan family, which controls Cablevision, is a New York institution. Cablevision runs a massive cable TV operation and has an estimated 3.1 million subscribers in the New York area. The company also has majority stakes in Madison Square Garden, the NBA’s New York Knicks and the NHL’s New York Rangers.

By Megan O’Neil