paidContent.org - The Economics of Content

Current Story

Zuckerman On Newsday Bidding: Daily News Synergies; Comes Down To Price; Murdoch Always Overpays

By Joseph Weisenthal - Tue 25 Mar 2008 05:44 AM PST

Flipped over to MSNBC for a quick morning politics fix and caught Mort Zuckerman, owner of the New York Daily News (among other holdings), talking about rumors of his interest in Tribune-owned Newsday. He’s definitely interested, as reports have suggested, though the question, as always, is price: “There is an advantage to the possibility of buying Newsday, which is, in a word, to consolidate efforts between it and the Daily News.” But a deal is going to be hard: “Sam Zell, who bought the Tribune company, is trying to get out of the newspaper business as much as he can… (but) I would not bet too much on it or pay too much for it.” As for competition on the deal, Zuckerman took the chance to needle rival Rupert Murdoch: “There’s no question that Murdoch is a very formidable competitor, in part because he’s willing to lose money forever and that’s a very difficult kind of person to compete with… with his company’s stock down at an all-time low, he has to be careful about what he does.” (Note: News Corp (NYSE: NWS). stock isn’t actually at an all-time low, though it is trading near its 52-week low, well off of its highs from early last year.) Bottom line: “(Zell is) going to have to sell it at too low a price; we’re going to have to buy it at too high a price, particularly if Murdoch wants to overpay for it, which is what he always does.”

Posted in: Companies, News Corp., Tribune, Media, Newspapers, VC+M&A, Mergers & Acquisitions


Related Research from Alacrastore.com

0 Responses:
  • There are currently no comments for this article.

    Why don't you make one?

Post Your Comment

Mobile Options

» Mobile App
» Mobile/WAP Site

Send a News Tip

About

paidContent.org, flagship of the ContentNext Media network, provides global coverage of the business of digital content.

Rafat Ali
Publisher & Co-Editor

Staci D. Kramer
Co-Editor

David Kaplan
Senior Correspondent

Joseph Weisenthal
Correspondent

Robert Andrews
U.K. Editor

Amanda Natividad
Editorial Producer

EconCeleb Conference - The Economics of Celebrity. July 23 at the Roosevelt Hotel in Hollywood

Featured Report - 2008 Social Media Deals Report

front page of report

The economics of social media continue to heat up, with ever more buzz created in new and growing market categories. This report examines the categories, number and size of investment and acquisitions into social media and the resulting value created from 2007 through 2008. Order your report today to analyze deals made by Yahoo, Disney, Google, AOL, CBS, Hearst, Microsoft and many more.

Learn more or purchase now.

New Media/Interactive Job Listings

Post Job
More Jobs

Generous Supporters