Black and white and red all over

12 May 2008 By Lauren Silva

The cable company is paying $650m for Long Islandbased newspaper Newsday. That s $70m more than Murdoch or Daily News owner Zuckerman bid and either could have reaped synergies in production and sales. Cablevision doesn t have such advantages. Its investors should worry.

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Cablevision, the New Yorkarea cable provider controlled by the Dolan family, agreed to buy Newsday newspaper from Tribune for $650m. Cablevision will pay Tribune $612m for a 97 percent stake in Newsday, plus an additional $18m in prepaid rent for some facilities. Tribune, owned by Sam Zell, will keep a remaining 3% stake worth $20m.

Rupert Murdoch's News Corp and New York Daily News owner Mort Zuckerman were also reportedly in the running for the Long Islandbased daily.

Cablevision bought the Sundance Channel last week for $496m.

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