Reuters has learned exclusively that Cablevision will make a $1 offer for the New York Daily News. Bobbi Rebell reports.
The New York Daily News could sell for less than just one of its daily papers. Reuters has learned that Cablevision plans to offer $1 for the newspaper as early as this week. The newsstand price of the paper: a hefty $1.25 Reuters' Liana Baker broke the exclusive story: SOUNDBITE: LIANA BAKER, REUTERS CORRESPONDENT (ENGLISH) SAYING: "It sounds like a joke on the surface but there is precedent for it in the media industry. Newsweek sold for a dollar a few years ago. And, if Cablevision does acquire the Daily News, which is losing money, it's gonna have to own the business, which isn't making a profit. So, there's been some examples in M&A where assets are sold for very little or, sometimes, the owner actually will pay someone to take an asset." Cablevision's $1 bid takes into account the Daily News's reported $30 million annual loss, and a $150 million investment in a printing press. The paper has a declining circulation that is heavily dependent on newsstand sales, rather than subscriptions. Adding the Daily News to Cablevision's portfolio of companies makes sense, says Macquarie's Amy Yong: SOUNDBITE: AMY YONG, CABLE AND SATELLITE ANALYST, MACQUARIE SECURITIES (ENGLISH) SAYING: "I think it's image. I think its marketing. It's branding, and that is what the Daily News could bring to Cablevision, right? It could help them brand Optimum or their, you know, Cablevision a little better or build market presence." But the dollar deal is not done yet. Sources tell Reuters' Baker the owner of the Daily News, real estate mogul Mort Zuckerman, wants closer to $200 million. Both companies declined to comment.