Cablevision Systems Corp. is buying the Long Island-based newspaper Newsday from Tribune Co. in a deal valued at $650 million, the companies announced Monday, the Associated Press reports.
Cablevision beat out media mogul Rupert Murdoch, CEO of News Corp., who withdrew his own $580 million bid on Saturday. New York Daily News owner Mortimer Zuckerman had also bid $580 million.
The deal brings Newsday back to local ownership on Long Island. Tribune had been seeking to sell Newsday to lighten an $8.2 billion debt load it took on last year when it went private in a deal orchestrated by real estate mogul Sam Zell.
Chicago-based Tribune will retain a 3 percent stake in a joint venture to be formed containing Newsday as well as several related assets, including Newsday.com, some regional magazines and the free daily newspaper in New York City amNewYork. Cablevision will hold the remaining 97 percent.
The deal will be financed by $650 million in debt provided by Bank of America. Tribune will receive $612 million in cash, another $18 million in prepaid rent for leases of facilities that Newsday will continue to use, and its 3 percent stake in the venture will be valued at $20 million.
