Murdoch’s Newsday bid matched
Bidding for Tribune Co.’s Long Island newspaper, Newsday, got livelier Friday as New York Daily News owner Mortimer Zuckerman matched a $580-million bid by media tycoon Rupert Murdoch, according to a person familiar with the situation.
The bids are structured differently, but both would provide Tribune with well over $500 million in immediate cash without triggering a large capital-gains tax, the person said.
The Chicago media conglomerate needs the cash to knock down debt incurred in its $8.2-billion buyout in December. Tribune is the parent company of the Los Angeles Times, KTLA-TV Channel 5, the Chicago Tribune, the Chicago Cubs baseball team and other papers and TV stations.
Murdoch, whose News Corp. owns the New York Post, and Tribune Chief Executive Sam Zell had a tentative deal on the Newsday sale, but the source said Zuckerman’s offer would be considered seriously.
For the Post and the News, tabloids engaged in a years-long battle for dominance, owning Newsday could be a decisive advantage in the expensive rivalry, potentially saving the winner millions of dollars by consolidating back-office, printing and distribution costs.
Murdoch’s bid is likely to draw greater regulatory scrutiny because News Corp. owns two TV stations in the New York area, plus the Wall Street Journal, which it acquired with Dow Jones & Co. last year.
Consumer groups have opposed to such a deal, saying it would put too much local media power in Murdoch’s hands.
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