By: Joe Strupp As Cablevision Systems Corp. formally submitted its $650 million bid for Newsday, News Corp. chairman Rupert Murdoch and Daily News owner Mortimer Zuckerman were being given a chance to meet or exceed that price as the bidding war for future ownership of the Long Island newspaper continued.
Newsday reported late Thursday that it had received the expected Cablevision bid and "rival suitors were said to be mulling possible changes to their offers."
Its parent, Tribune Co., was expected to give Murdoch and Zuckerman a chance to increase their previous bids of $580 million each, or $70 million less than that of Cablevision, the paper reported.
The paper added that "the three offers include a joint venture whereby Tribune retains a small stake in Newsday to lessen its capital gains tax."
"Tribune is focused on the price and the structure of any arrangement," a source told Newsday. Tribune chief executive Sam Zell said he "still would like to do a deal with Murdoch because they have a budding relationship, but Rupert is going to have to put more money in -- which I think he will do," the paper added.??
Another source familiar with the Zell-Murdoch talks said lawyers were reviewing the bids and exploring how the various joint ventures would be structured, Newsday wrote. "Zell doesn't want the grass to grow on this thing -- but he also is glad to see a bidding war develop for Newsday," the source said.??
Financially-troubled Tribune is seeking a buyer for Newsday and its subsidiaries, including the free amNewYork, to raise cash for debt payments stemming from the media chain's privatization last year, the paper reported.
"Cablevision's bid would just about cover a payment due Dec. 4.," Newsday reported.
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