By: E&P Staff
The owner of the New York Daily News is preparing a counter-bid for Newsday that could come as early as today.
Newsday’s Mark Harrington, Thomas Maier, and James T. Madore reported that Mort Zuckerman reportedly plans to submit a “serious” offer.
News Corp.’s Rupert Murdoch has reportedly offered to buy Newsday from Tribune for $580 million. The deal is structured to allow Tribune to keep a small stake in the Long Island daily.
Sources told Newsday that Zuckerman earlier made an offer in the low $500 million range earlier, which Murdoch exceeded. They think Murdoch’s bid “appeared far ahead of any other potential suitors.”
News Corp. has been conducing due diligence at Newsday for weeks, reported Newsday.
Source told Newsday that Tribune owner Sam Zell is partial to News Corp. because of the similar structure of both companies — they both operate TV stations and newspapers.
“This is more than selling one paper — it’s about building a relationship between the companies,” an unnamed source told Newsday.
“This is for Rupert to lose, not for Mort to beat him,” another unnamed source told the paper.
Additionally, the owner of the New York Observer and Cablevision are teaming up to possibily submit a bid that could come next week.
Tribune spokesman Gary Weitman declined to comment to Newsday.