Why was real estate developer and Daily News owner Mort Zuckerman so quick to come to Citigroup's defense with no less than four separate appearances on MSNBC yesterday? Perhaps it has something to do with the fact that the bank is one of his largest tenants? Wayne Barrett explains. [VV]

Citigroup is a pathetic loser of a corporation having needed three bailouts in as many decades. "Another large exposure for uncertain benefits," the corporate apologists at the Wall Street Journal editorial page declared of the latest Citi rescue. But the global banking giant is one of the largest tenants of Mort Zuckerman, the owner of Citigroup's world headquarters and of the nearby 59-story Citigroup Center, which Citi partly occupies. Why is NBC News allowing Zuckerman to pimp a rescue for Citi?

US News has been scaled back again. The Mort Zuckerman-owned magazine first cut back in June when it announced it would become a bi-weekly. Now comes word the fading news magazine is going monthly. Coming soon: US Quarterly! [Fishbowl DC]

Real estate developer and Daily News publisher Mort Zuckerman doesn't make too many appearances on Fox News or Fox Business Channel, which may have something to do with the fact both networks are controlled by his arch-enemy, Rupert Murdoch. Today Zuckerman appeared on Fox Business to discuss the bailout and made the egregious error of quoting a figure from the Financial Times. Didn't Mort get the memo in the green room that you're only supposed to cite Murdoch's Wall Street Journal on the air? Apparently not! But the tension between the two billionaires seems to have cooled: Zuckerman says he thinks the Journal has only gotten better since News Corp. took over, and—just in case you're tuning in, Rupert!—Mort would also like you to know he thanks you kindly for his free subscription. Also: Zuckerman thinks the bailout should have been extended to newspaper publishers, too. Now that would be convenient, wouldn't it?

The Daily News has had a sudden change of heart about Sarah Palin. On Sunday, the paper's Thomas DeFrank and David Saltonstall quoted three Republicans critical of Palin's embarrassing answers for CBS anchor Katie Couric and others on the campaign trail. The story's headline said there were increasing calls for Palin to "step down from GOP ticket." Then, on Monday, came an article by "Daily News Political Editors" — no writers' names were attached. It was titled "Eight reasons why John McCain won't drop Sarah Palin from ticket." And it called Palin a "fundraising dynamo" and "crowd magnet" who had "unconditional love" from social conservatives. We hear the story was considered an embarrassment by News journalists, but was ordered from on high. UPDATE: See below.

Mort Zuckerman just appeared on CNN a few moments ago to discuss the meltdown on Wall Street and the Fed's decision to keep the interest rate unchanged. Anchor Rick Sanchez then proceeded to thank Mort for calling in and volunteering to appear on the air. Self-promotion: It's not just for Julia Allison!

The Observer sits down with attorney Jonathan Mechanic, widely considered to be one of the city's best-connected real estate attorneys. His clients? How about Jerry Speyer, Steve Roth, Stephen Green, Mike Bloomberg, Bruce Ratner, Doug Durst, Mort Zuckerman, Harry Macklowe, Miki Naftali, William Zeckendorf, Gary Barnett, Bill Rudin, Donald Trump, Kent Swig, Joe Moinian, and Larry Silverstein. We're exhausted just reading that list. [NYO]

You know times are tough for the newspaper business when sworn enemies come together: "Rupert Murdoch, whose News Corporation owns The New York Post, and Mortimer B. Zuckerman, the real estate developer and owner of The Daily News, who for years have been bitter tabloid competitors, are considering the unthinkable: cooperation. Representatives of Mr. Zuckerman and Mr. Murdoch have been in discussions for several weeks to find ways to combine some business functions of The Daily News and The Post, according to people briefed on the matter." [NYT]

After bitter tabloid rivals the Post and Daily News both lost their bidding war for Newsday to bumbling Long Island cable concern Cablevision, discussion centered on which tab would be first to strike some kind of cost-cutting partnership with Cablevision. As it turns out, the Post and Daily News may just cut Cablevision out of the loop entirely — the Times tonight substantiates prior rumors the two papers will partner. The tabloids are in preliminary but "committed" discussions to share printing, distribution, sales and other functions, stopping short of a full Joint Operating Agreement. If only it were all so easy as simply signing off on such a deal.

Page Six Magazine published a handy little charticle on some of the most powerful co-op boards in town and the board members who stand between you and that $20 million co-op.

Mort Zuckerman's sleep-inducing U.S. News, which has played third fiddle to rival news weeklies Time and Newsweek for years, announced this week that it will be switching to a biweekly publication schedule next year. Not a huge shock—the mag started abandoning news coverage in favor of "Best Colleges in America"-type lists last fall, and reduced its annual issue count from 46 to 36. But does the move signal that the Canadian-born tycoon is moving away from media and focusing on his first love, real estate? And as crappy as the newspaper business is right now, is commercial real estate really the place to be putting your money these days?

• Despite incessant talk of the real estate bubble bursting, not only are resale prices at 15 Central Park West holding up, they're soaring. Dan Loeb's $45 million penthouse is looking like the bargain of the century! [NY Mag]

Billionaire real estate developer, media mogul, and longtime lothario Mort Zuckerman (Arianna Huffington, Marisa Berenson, Diane von Furstenberg, Nora Ephron, Patricia Duff, Gloria Steinem, and more) turns 71 today. Thank God for Cialis!

"News Corporation, the global media conglomerate controlled by Rupert Murdoch, is withdrawing its bid to purchase Newsday. The withdrawal of the bid was first reported on the Web site of The Wall Street Journal, which is owned by the News Corporation.The bid withdrawal appears to be a reversal from Wednesday, when in the News Corporation's earnings conference call Mr. Murdoch voiced skepticism that Cablevision could succeed in its bid for Newsday, even as he vowed not to get into a bidding war for the newspaper, which was at the center of a tussle among three New York moguls."

"Cablevision is preparing a $650 million offer for Newsday, $70 million more than bids by Rupert Murdoch and Mortimer B. Zuckerman... Executives... interested in Newsday said they learned over the last month that printing, trucking and subscription operations were more troubled and inefficient than they knew. Paradoxically, that has persuaded them that the paper was worth more... 'These are problems that can be fixed, so there's a lot of room for improvement,' one executive said." [Times]

"Mortimer B. Zuckerman, the owner of The Daily News, believes he can snatch Newsday from Rupert Murdoch without offering a dime more than the $580 million already on the table. Mortimer B. Zuckerman will argue his bid has less potential for regulatory uncertainty."

Rupert Murdoch's 78th year has been busy. With the exit of the Wall Street Journal's native managing editor, Marcus Brauchli, the Australian media mogul's lieutenant now has a free hand to turn the business newspaper into a broader national title. We're hearing this afternoon that Daily News owner Mort Zuckerman has dropped out of the bidding for Newsday, clearing the way for Murdoch's News Corporation to take control of a third newspaper in the New York market. And the New York Post is this week shrinking to allow the News Corporation tabloid to be produced on the same presses as the Journal. But here's the question: why the rush? There are three main reasons: newspaper publishing economics; the broader synergies available to a media group with heightened political influence; and mortality.

After yesterday's story about a New York magazine critic apologizing to Harvey Weinstein, and the critic's suspect assertion that his apology was independent of the sharp-elbowed former Miramax chief, we heard from a well-placed media veteran who said Weinstein has long loved to brag about his ability to extract such concessions, and in fact about how he effectively owns New York media. It turns out the bragging is not entirely without reason. Said the tipster: "Name any media outlet and there is a 'best friend/recent connection that I [Weinstein] can call to kill stories/get a retraction' from." It didn't take a lot of digging to figure out what the source meant. A quick rundown of Weinstein's top-of-the-masthead connections:

Since when is Newsday so hot? The paper consistently publishes the most boring front page of any of the Gotham tabloids, but the publication is clearly stirring the passions of corporate tycoons. Rupert Murdoch's interest emerged yesterday; now it's clear that the News Corp. CEO and Post owner must queue with other suitors interested in winning Newsday from money-hemorrhaging Tribune Company. Daily News owner Mort Zuckerman wants the paper for largely the same reason as Murdoch, which is to merge business-side offices and cut costs enough to drive the remaining, unaffiliated tabloid out of business. Long Island cable operator Cablevision Systems Corp. is bidding, perhaps so it can cross-sell ads from its cable system and local news channel into Newsday. It's not clear that the other two bidders are as serious as Murdoch, or can afford to be, but broker Citigroup is apparently planning a "soft auction." Newspaper analyst John Morton estimates Newsday could fetch $350 million to $400 million, down about half from its value five years ago. Kind of sad for what Morton described, in the Times' retelling, as "probably one of Tribune's more lucrative papers." [Times, WSJ]

The Daily News was very busy this afternoon telling everyone and their mom that the city tabloid will go all color by the end of 2009, making it the "first major market daily newspaper in the United States" to do so, according to a release. (Never mind that Europe's been doing this for years, along with plenty of far more inferior weeklies stateside.) Publisher Mort Zuckerman may not be losing quite as much money on his tabloid as Rupert Murdoch does on his Post, but we're fairly sure Mort's not changing the hue of his paper just so it'll look a little prettier at the prom.