Chicago is My Home

22
Apr

Reports: Chicago-Based Tribune Co. Has Deal in Principle to Sell Newsday

Author: Adam Fendelman, Category: Business

CHICAGO – The Tribune Company in Chicago has reached an agreement in principle to sell its Long Island, N.Y.-based daily newspaper Newsday to Rupert Murdoch’s News Corp., according to sources in published reports on Monday.

News Corp. would pay roughly $580 million for a majority stake in the publication, according to the Chicago Tribune. While still on the table, the deal was negotiated in person by Murdoch and Tribune Co. Chairman Sam Zell and was structured to minimize the Tribune’s taxable capital gains.

After brokering a $8.2 billion buyout in 2007, billionaire Zell assumed responsibility not only for the Tribune Co. but also for the company’s hundreds of millions of dollars in debt. Faltering subscription numbers and rising operating costs have plagued Tribune publications.

Newsday has been part of Tribune Co. since the media company acquired the Los Angeles-based Times Mirror Co. in 2000. Newsday has a paid circulation average of about 387,000 during the week and 454,000 on Sundays.

By Megan O’Neil