It’s Official: Cablevision Confirms Newsday Acquisition; Acquiring 97 Percent For $632 Million
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, Cablevision will get the Newsday website, amNewYork, the free NYC daily foisted on unsuspecting subway riders, as well as a group of Long Island-based community shopper publications. 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 brand—I expect them to grow and flourish as a result of this new partnership.” Release.
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.
Posted In: Media & Publishing, Newspapers, Money, M&A & Venture Capital, Mergers & Acquisitions, Companies, Tribune, cablevision, newsday
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