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MUMBAI:
New York cable provider Cablevision Systems Corp. is likely
to acquire Newsday from Tribune Co. for $650 million after
Rupert Murdoch’s News Corp withdrew its offer.
Reportedly,
the deal would give Tribune $630 million in cash to pay down
its nearly $13-billion debt. Two-thirds of that was incurred
in December's $8.2-billion buyout of the company. Tribune
owns the Los Angeles Times, KTLA-TV Channel 5, the Chicago
Tribune and other media properties around the country.
After
the transaction, Cablevision would hold 97 per cent of the
equity and Tribune 3 per cent.
"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 brand.
I expect them to grow and flourish as a result of this new
partnership" said Tribune chief executive Sam Zell.
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