Monday, May 12, 2008
The Dolan family, who failed in its effort to take Cablevision private last year, seems to have prevailed with its $650 million bid for the Long Island newspaper, Newsday, after Rupert Murdoch pulled the News Co's $580 million bid and said it would not raise its price. Cablevision consists of the cable company and a mix of sports and entertainment businesses, including Madison Square Garden, the Knicks and the Rangers. Sam Zell, who controls the Newsday's parent company Tribune after taking its private last year, needs to sell assets to pay down the debt from the LBO. Analysts view Cablevision's acquisition of the newspaper with skepticism, saying shareholders would be better off if the company repurchased its shares. NYTimes, Cablevision Offer Baffles Wall Street (Again); WSJ, Cablevision Closes In On Deal for Newsday.