Cablevision’s Dolans buy Newsday

Cablevision and the Tribune Company both announce that Long Island’s largest daily newspaper, Newsday, will be bought by Cablevision Systems Corporation.

Newsday, which has the 10th largest weekday circulation and the largest for any suburban region, just announced this morning that Cablevision will buy the Newspaper for $650 million. Cablevision Systems Corporation (NYSE:CVC) will acquire about 97 percent of Newsday with the other 3 remaining with the Tribune Company.

Cablevision Chairman Charles F. Dolan said, “Newsday is one of the great names in the history of American journalism and it is both an honor and privilege to return Newsday back to Long Island-based ownership after nearly 40 years. We admire Newsday’s strong editorial voice and reputation for quality as well as its leadership in print and online journalism. We are committed to maintaining Newsday’s journalistic integrity and important position in the marketplace.”

Tribune Chairman and CEO Sam Zell said, “This agreement enables us to maximize the value of Newsday and still retain an interest in this valuable asset. The newspaper has a unique circulation base and a tremendously strong local brand — I expect them to grow and flourish as a result of this new partnership.”

Cablevision President and CEO James L. Dolan continued, “Both Cablevision and Newsday are in the content, customer relationship and advertising business and we see this as a wonderful fit. Adding Newsday Media Group’s superb assets to Cablevision’s portfolio presents a multitude of opportunities: to provide consumers with additional quality content on multiple platforms; expand advertising opportunities for both entities; and attract a larger audience than either company could on its own. We strongly believe Newsday Media Group and Cablevision share the same consumer-focused values, and we look forward to building on our mutual history in the New York area with these wonderful assets under the same umbrella.”

Cablevision will also takeover the Newsday Media Group Assets, which include Newsday.com (3.2 million monthly unique visitors), amNY (free nyc commuter daily paper, +335,000 readers), STAR Community Publishing (Northeast’s largest weekly shopper group) and Island Publications (local magazines).

Reactions to this deal are mixed. On one hand its great to have a Long Island based company control a Long Island Newspaper. The deal also helps advertisers increase their customer base and makes it easier for Cablevision to sell more ads. On the other hand, do Long Islanders really want local news controlled under one company/ family. Cablevision already owns and operates News12, the only major Long Island news network. The Dolans, with total control over local Long Island news could influence potential voters for various elections and budgets.

Cablevision, the 5th largest cable provider in America serving 3 million households in the New York metropolitan area. The corporation, which is based in Bethpage, also owns high-speed Internet Optimum Online, phone service Optimum Voice, Madison Square Garden, Radio City Music Hall, New York Knicks, New York Rangers, New York Liberty, Hartford Wolf Pack, Clearview Cinemas, the Beacon Theatre, the Chicago Theatre and national cable networks including IFC, AMC, Fuse, WE, MSG Network.

The completion of this transaction is subject to certain customary closing conditions, including regulatory approval.