Cable TV firm wins US newspaper

There was a three-way fight for Newsday

US cable TV firm Cablevision says it is buying US newspaper Newsday for $650m (£332m), after Rupert Murdoch's News Corp withdrew its bid.

Cablevision also beat Mort Zuckerman, who owns the New York Daily News. He had bid $580m, the same as Mr Murdoch.

Newsday is published by the Tribune newspaper group, owner of the Chicago Tribune and Los Angeles Times.

Tribune was seeking to sell Newsday to lighten its $8.2bn debt, which it took on last year when it went private.

Newsday is the eighth-largest US newspaper, with daily circulation of about 380,000 copies.

According to the terms of the agreement, Cablevision will acquire about 97% of Newsday Media Group, known as Newsday, valued at $632m.

The Tribune Company will also receive $18m at the completion of the deal as prepaid rent under certain leases of property used in the business.