It's Official: Cablevision Confirms Newsday Acquisition; Acquiring 97 Percent For $632 Million
This story was written by Joseph Weisenthal.
As expected, Cablevision (NYSE: CVC) has won the Newsday-stakes, and will acquire 97 percent of the Tribune-owned paper for $632 million. Tribune will get another $18 million related to prepaid rent, bringing the total value of the transaction to $650 million. The announcement touts the potential for the Long Island-based Cablevision to complement its existing operations with more local content, although unlike the other would be acquirers (News Corp (NYSE: NWS). and Mort Zuckerman's New York Daily News), there's not a cost-savings component. In addition to the paper itself, Cablevision will get the Newsday website, amNewYork, the free NYC daily foisted on unsuspecting subway riders, as well as a series of Long Island-based community shopper publications. Said Tribune CEO Sam Zell: "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 brandI expect them to grow and flourish as a result of this new partnership."
Some specific deal benefits Cablevision is trumpeting:
-- The opportunity to sell TV, print and online advertising together
-- Cablevision will push its sports assets more aggressively in the pages of amNewYork (it's free, so nobody's going to complain).
-- Broadband customers will be offered enhanced interactive content related to Newsday.
By Joseph Weisenthal