The cross-ownership complications put in play by the Rupert Murdoch/News Corporation play for Long Island icon Newsday are off the table. Cablevision has come in with a $650M bid, eclipsing the $580M offered by Murdoch and giving a much-needed cash infusion to seller Tribune. News York Daily News owner Morris Zuckerman also reportedly had $580M on the table. Cablevision CEO James L. Dolan hailed the opportunity to add a new advertising revenue stream in its home turf; Tribune’s Sam Zell said he was happy to see Newsday go to owners who would help it continue to flourish, and added he was happy to retain a 3% stake.
RBR/TVBR observation: Zell will probably be even happier when he sees Cablevision cash land in the Tribune bank account. The cash portion of the compensation package will amount to $612M.