(RTTNews) - Media Mogul Rupert Murdoch’s News Corp. (NWS, NWS.A) is reportedly dropped its $580 million bid to buy Tribune's
(TXA) Newsday newspaper. Newsday reported on Saturday that News Corp. now sees the bid as 'uneconomical to continue.'
News Corp has been keen to acquire, the Long Island – based Newsday and it has reiterated its interest even on last week. News Corp.’s bid had become inferior when Cablevision Systems Corp.
(CVC) offered $650 million for the Newsday.
Mortimer Zuckerman of Daily news also was in the fray since January 2008 and his bid matched News Corp.’s offer. The offer from Cablevision included fewer regulatory hurdles.
Tribune decided to sell Newsday since real-estate magnate Sam Zell took effective control of the company in December 2007. Sam Zell has been trying to reduce Tribune's heavy debt burden, which mounted after it was taken private in an $8.2 billion buyout. Zell announced job cuts and sale of assets to repay debt as print advertising and circulation decline.
NWS finished Friday’s regular trading session at $19.35, down $0.33 or 1.68% on a volume of 1.602 million.
Friday’s session for TXA finished at $35.25 on a volume of 30K shares.
For comments and feedback: contact editorial@rttnews.com