Cablevision Agrees To Acquire New York's Newsday
Operation To Report to Tom Rutledge, Head of Cable Business
MCN Staff -- Multichannel News, 5/12/2008 12:47:00 AM MT
Cablevision Systems Corporation said it reached a definitive agreement with Tribune Co. to form a new partnership through which Cablevision will acquire approximately 97% of Newsday Media Group, for a total of $650 million.
The partnership will also include a print and online media group to generate diverse, quality local content in areas where Cablevision operates. Newsday Media Group operates the Newsday daily newspaper, Newday.com and amNewYork, a fast-growing free daily in New York City with an average weekday circulation of 335,000. Cablevision operates local TV news channels, called News 12. Newsday Media also operates the Star Community Publishing Group of weekly shoppers and Island Publications' portfolio of lifestyle magazines.
Cablevision chief executive James Dolan indicated that the Newsday businesses will report to Cablevision chief operating officer Thomas Rutledge.
Cablevision chairman Charles Dolan, in a statement, said: “Newsday is one of the great names in the history of American journalism and it is both an honor and privilege to return Newsday back to Long Island-based ownership after nearly 40 years. We admire Newsday’s strong editorial voice and reputation for quality as well as its leadership in print and online journalism."
Tribune Chairman and CEO Sam Zell said: “This agreement enables us to maximize the value of Newsday and still retain an interest in this valuable asset. "
The combined company will gain be able to market Newsday more effectively to hundreds of thousands of Long Island households currently served by Cablevision -- the majority of whom do not currently subscribe to Newsday, a joint release of Tribune and Cablevision said.
Advertisers will have a greater sleection of ways to target audiences, with the combination of local media that Cablevision will operate, the companies said..
This will include increasing classified advertising reach through Newsday, Cablevision’s Optimum Homes and Optimum Autos interactive television classified services, and Newsday’s Star (181 shopper editions with a weekly circulation of 2.6 million), for instance.
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