Big News Day
With Cablevision Systems Corp. (NYSE: CVC) scooping up Newsday Media Group for $650 million, now we have a cable MSO buying a newspaper. (See Cablevision to Buy Newsday.) That's news!
You can talk about content, marketing, and advertising synergies among Cablevision and Newsday on Long Island all you like. A the end of the day, the motivation for this deal was far simpler. In essence, the Dolans were sending a smack-down message to the Murdochs: "You wanna piece of our Island? Don't even think about it!"
Having gobbled up the New York Daily News and Dow Jones, Rupert's News Corp. (NYSE: NWS) was seeking a Big Apple trifecta with Newsday. In the wake of this defeat at the hands of the Dolans, there is no evidence yet that Murdoch's Gotham ambitions may morph into a run at the Manhattan-based Light Reading publishing empire.
— Michael Harris, Chief Analyst, Cable Digital News