Newsday Nearly Rupert Murdoch's Latest Conquest
Rupert Murdoch's News Corp. is about to buy Newsday for close to $580 million, and pull off a neat trick in the process: bringing profitability to Murdoch's other, cash-bleeding tabloid, the New York Post. By combining the Post and Newsday into a joint business venture, Murdoch stands to "wipe out as much as $50 million in annual losses News Corp. now incurs on the Post, with the combined Newsday-Post operation earning roughly $50 million," according to a Wall Street Journal source. The sale price represents a significant premium over the $350 million to $400 million price put forward by one newspaper analyst. The whole transaction is dependent on regulator approval, which is no sure thing. Assuming the deal goes through, it will be interesting to see how Newsday's headlines, front page and overall tone evolve, since the joint venture is not limited to back-end business operations but includes editorial resources as well. [WSJ]