What’s Up With Cablevision Buying Newsday?
May 14, 2008 11:21 AM
Wall Street analysts remain baffled over Cablevision System Corp.’s $650 million purchase of Newsday Media Group from Tribune Co. earlier this week.
They’re asking what does a cable multiple system operator know about the challenging, if not daunting, task of running a profitable newspaper in these times? Most newspapers are not profitable.
Then analysts ask why Cablevision is on a shopping spree. Remember, a week earlier the MSO acquired the Sundance Channel for roughly $500 million.
CNBC’s “Fast Money” team thought Cablevision is not treating shareholders fairly. The Dolan family, owners of Cablevision, have all of the voting shares.
One frustrated analyst said the real play here is for Cablevision to spend money, drive the stock down and once again try to take the company private, something it has attempted to do several times before.
Do you buy that conspiracy theory? I do not.