Fair Media Council Against Cablevision Acquisition of Newsday Media Group

May 13, 2008

(Long Island, N.Y.) Cablevision Systems Corp has announced that it will buy Long Island based Newsday from the Tribune Co. in a deal worth $650 million. It’s expected that Tribune will retain a 3 percent interest of Newsday - valued at $20 million to avoid a capital gains tax from the sale. This leaves Cablevision owning 97% of Newsday companies which consist of Long Island’s only daily newspaper, online versions of Newsday.com and other local information sites such as ExploreLI.com, the commuter daily amNewYork newspaper and Star Community Publishing Group (a host of weekly shoppers) and Island Publications’ portfolio of lifestyle magazines. The deal will be financed with $650 million in Cablevision bonds underwritten by Bank of America.

Citing grave concern for the Long Island public, both as news consumers and as advertisers, the Fair Media Council today denounced Cablevision’s acquisition of Newsday and its holdings.

“Such an acquisition simply places too much power in the hands of too few,” said Jaci Clement, executive director of the Fair Media Council. “Cablevision’s dominance as the only 24-hour news channel on Long Island, combined with Newsday being the sole daily local newspaper, spells serious trouble for the 2.7 million people on Long Island who need - and deserve — a diversity of information and viewpoints in their news. Such a media monopoly also poses a threat for the 87,000 small businesses that comprise the backbone of the Long Island economy and need affordable avenues for advertising.”

“If you take Newsday and its other products, plus News 12, you’re looking at the ability for one media outlet to come into every home on Long Island,” said Clement. “You’re also looking at the ability for one media outlet to ignore news it doesn’t want the public to know.”

The Fair Media Council, an advocate for quality local news coverage and a 501c3 organization, is comprised of about 200 regional businesses and nonprofit organizations. More information may be obtained at www.fairmediacouncil.org.

Posted by News LI Editor · Edited by Brianna - Filed Under Money