Cablevision Enlarges News Push with Newsday Buy

Cablevision Systems doubled up its news footprint on Long Island in suburban New York by firming a $650 million definitive agreement Monday to buy a 97% stake in local daily newspaper Newsday. The suburban newspaper overlaps Cablevision systems in Long Island and will provide editorial resources that can help the company's News 12 news channels. In the buy, Cablevision -- the nation’s fifth-largest cable system-- will acquire the stake in Newsday Media Group for $632 million from Tribune, which will retain a 3% stake. Tribune -- which is selling assets to pay down debt associated with its $8.2 billion sale in December -- will also receive $18 million at closing as prepaid rent from leases of property used in the Newsday business, bringing the value to $650 million. The deal is expected to be structured as a joint venture for tax reasons.
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