Tuesday, April 22, 2008

An agreement in principle

Reports are that Newsday will be become a "joint venture" with the New York Post. Terms aren't yet final of the complex deal that will give Murdoch a majority ownership of Tribune-owned Newsday and Zell the smaller stake and about $560 million in cash. From the Chicago Tribune:

One source said there was only "clean-up work" remaining and expected an official announcement soon. Another said it could be weeks before a contract is signed and was concerned about requisite regulatory approval, pointing out: "It's one thing for Rupert and Sam to work out an agreement. It's still up to the battery of lawyers to work out the finer points."
Other than the price, the media moguls have reportedly come to an informal agreement on structure and governance. More at WSJ

Newsday's union members were speculating about sale a couple of months ago when unionized workers at the New York Post alerted them to a possible deal.
Dennis Grabhorn, president of Local 406, which represents many Newsday employees, said members have been discussing several possible configurations under which the Post could partner with Newsday, which already distributes the Post on its trucks.
"I'll take any of the three" bidders named in Friday's news reports," said Grabhorn, but "the only one that is a real newspaper person is Rupert Murdoch."
Who would have ever thought newspaper workers would look to Murdoch as their top choice for employer?

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