By: E&P Staff
Rumors had swirled all day, first reported by Crain’s, and confirmed late Thursday when The New York Times reported that three moguls are in discussions to buy Newsday, the Long Island newspaper, from the Tribune Company.
The Times attributed this news to “people involved in the sale process said Thursday.”
The three bidders: none other than Rupert Murdoch, chairman of the News Corporation, owner of The New York Post; Mortimer B. Zuckerman, who owns The Daily Newsl; and James L. Dolan, whose family controls Cablevision.
:The sale process, which is described as a soft auction in which investment bankers are approaching a selected number of buyers, involves several possible kinds of deals,” the Times reported.
‘Mr. Murdoch, for example, is considering a deal that would be structured as a joint venture between The Post and Newsday, that would combine the back-office operations of the two papers. None of the people involved in the auction would be identified because of the confidential nature of the talks….
Newsday is” probably one of Tribune?s more lucrative papers, according to John Morton, a newspaper analyst, because it serves an affluent region near New York City. People involved in the Newsday sale declined to name a price, but Mr. Morton estimated that it could be worth $350 million to $400 million, though he cautioned that it was hard to say because Tribune does not report the performance of individual publications.”