Rupert Murdoch of News Corp (NWS) pulled his $580 million bid for large Long Island paper "Newsday" currently owned by The Tribune Company.
Cablevision (CVC), which has a large portion of its subscriber base on Long Island, has bid $650 million
The turn of events is extremely odd. Murdoch could have saved tens of million of dollars each year by combining key functions at "Newsday" with his NYC daily "The New York Post". The deal would have made both papers much more profitable.
Cablevision gains no ready economies of scale by combining a cable system with a newspaper. The company’s bid is much too high and stands to yield very little benefit for the firm.
Cablevision’s shareholder are likely to knock the stock down and, if the deal goes through, shares could stay down for a long time.