Cablevision beats out Murdoch for Newsday

AP

Cablevision Systems Corp. is buying the Long Island-based newspaper Newsday from Tribune Co. in a deal valued at $650-million (U.S.), the companies announced yesterday. 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. Cablevision said owning Newsday will allow the company to better market the newspaper to the many households on Long Island that don't yet subscribe to it, while tapping Newsday's expertise in ad sales to help Cablevision's own cable TV advertising business. CVC (NYSE) fell 45 cents to $24.52.