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=
=20
Cablevision Systems Corp. this =
afternoon=20
completed its $650 million acquisition of Newsday in a deal that creates =
a=20
regional powerhouse for online and print news and=20
advertising.
Cablevision acquired 97 percent of Newsday Media =
Group=20
through the formation of a new partnership with Tribune Co., first =
announced in=20
May. Cablevision said the deal "adds a complementary print and online =
media=20
group with diverse, quality local content in the New=20
York area."
Newsday Publisher Tim Knight will continue to =
oversee=20
Newsday and will report to Cablevision chief operating officer Thomas=20
Rutledge.
"We deeply appreciate Newsday's journalistic =
excellence,=20
editorial voice and advertising value," Rutledge said. "Adding Newsday =
to the=20
Cablevision family will combine powerful newsgathering capabilities with =
industry-leading electronic distribution. We believe this presents great =
opportunities for us to build our subscription-based businesses. This =
marriage=20
of content and technology will also strengthen Newsday's role as the =
connecting=20
point between readers and the events, businesses and neighbors around =
them. I am=20
confident in the many talented employees at Newsday and look forward to =
the=20
opportunities that lie ahead."
![3DNewsday=20](3D"http://www.newsday.com/images/branding/masthead_subpages.gif")
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July 29, 2008
Text size:
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<=
A=20
onclick=3D"textSize('decrease');" href=3D"javascript:void(0);" =
rel=3Dnofollow>Cablevision completes acquisition of Newsday
Knight called the deal "an important moment for us =
all at=20
Newsday. We are joining a company that has a tremendous understanding of =
the
Cablevision=20
and Newsday will begin exploring ways to grow their advertising-based =
and=20
subscription-based businesses. Cablevision is expected to begin using =
its cable=20
systems across the New York area to run Newsday advertisements that =
highlight=20
the strength of the paper's news, content and advertising.
The =
deal puts=20
Cablevision in control of the largest block of advertising and news =
resources in=20
the region. Its digital cable empire reaches more than 3 million =
households in=20
the tri-state area, and it owns News=20
12 Networks operating a 24-hour news programming through the region. =
Newsday's paid weekday circulation is just under 380,000=20
copies.
Cablevision's bid was once considered a wild card in the=20
high-stakes negotiations for Newsday. Tribune=20
Co. chief executive Sam=20
Zell reached a handshake deal with News=20
Corp. chairman Rupert=20
Murdoch in April to buy Newsday for $580 million. Cablevision, at =
least=20
initially not in the running, quickly entered, at first through =
discussions with=20
the New York Observer. But soon Cablevision was on its own with a =
table-turning=20
$650 million offer the other media titans, including Daily News owner Mort=20
Zuckerman, were unwilling to match.
The companies announced=20
Cablevision won the bidding and reached an agreement in principle in=20
May.
The deal received the approval of the Department of Justice =
and the=20
Federal Trade Commission late in June.
Market watchers say =
Cablevision=20
has two primary tasks ahead as it seeks to integrate Newsday into its =
cable=20
empire, which includes a 3-million-plus subscribers in the tri-state =
area, a=20
large cable programming arm and News 12 Networks.
Craig Moffett, =
an=20
analyst who tracks Cablevision at Sanford C. Bernstein & Co. in
"Owning Newsday presents Cablevision with some unique=20
opportunities, both on the cost side and the revenue side," he said. " =
Obvious=20
cost opportunities include combining some editorial functions with their =
News 12=20
business, and combining local ad sales groups for cable and newspaper=20
advertising. On the revenue side, there are cross promotional =
opportunities for=20
subscription sales, and packaged deals to be sold to advertisers across =
cable=20
and print. They can even do some interesting things with respect to =
classified=20
advertising and cable video on demand," Moffett said.
Since first =
announcing the acquisition in May, Cablevision executives have said =
their aim is=20
to restore some of Newsday's former prominence after years of =
cost-cutting and=20
staff reductions under Tribune. That would appear to entail some level =
of=20
investment in the paper by Cablevision.
Newspaper industry =
analyst
"As=20
competition increases, it's crucial for papers to strengthen their =
brands,=20
increase their standing in communities and increase their quality. =
Failure to=20
pursue those goals will only hasten newspapers' demise," Morton said. =
Investment=20
"is a smart thing for Cablevision to do," he said.
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