Gawker
Rupert Murdoch's secret, sneaky plan to destroy Long Island tabloid Newsday: let a dysfunctional company buy it for more money. Cablevision purchased the paper for $650 million and Murdoch withdrew his bid this weekend. Now, everyone is a bit confused. Because Cablevision owns many odd things, but none of them have been newspapers up til now. "The Newsday bid had the backing of both Charles Dolan, who founded the company, and his son James L. Dolan, the chief executive," the Times reports, even though generally the Dolans hate each other and disagree about everything. And according to witnesses of the meetings between the Dolans and former Newsday owner Sam Zell, the "tension between the two has been obvious." As have the tensions between Cablevision and its shareholders. Because Cablevision is a company that does one thing quite well and everything else quite poorly.
Cablevision makes a lot of money with its cable system. Madison Square Garden and the Knicks and the Rangers? Not quite managed as effectively. And now Cablevision owns a newspaper and no one knows why except maybe it's just the Dolans being insane or Jimmy trying to prove to dad that he knows how to run a company or something. Obviously owning a Long Island newspaper will present some synergistic benefits to a company that owns a cable tv system, but not necessarily $650 million worth. Plus the deal comes right after Cablevision inexplicably bought the Sundance channel for almost $500 million. That deal made even less sense, really, though at least the price wasn't as embarrassing as everyone worried it might be.
Some Wall Street types are pretty sure the crazy Dolans are just trying to mismanage the company to annoy all the shareholders who didn't let them go private last year. We suspect Jimmy just decided to buy a newspaper because he wishes he could be an awesome media baron like Rupert Murdoch.
Comments
The Dolan family have some sort of weird fetish for off-brand, démodé media, entertainment and retail properties.
I mean, really... The Wiz, MSG. Next, they're going to buy the Mets.
Cablevision does one other thing nicely...their coverage of local news that nobody gives a shit about is second to none, especially in their mid-90's heyday (TWA Flight 800 was the best thing that ever happened to them. Too soon?)
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A small price to pay for a papier-mâché dome over Long Island.
Umm Cablevision does one other thing well....
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Any pseudo Knicks Fan or informed New Yorker knows the Dolans need to "control the media" (ref. Garden Policy, etc.). Their incompetence in running successful businesess may make itself more obvious as time goes on and they buy more.
I anticipate as things get stretched, the frays will be more obvious.
i hope this means the newsday channel will come back. (please tell me i wasn't the only person watching the newsday channel.)
The Newsday employees would welcome just about anybody at this point --- after the skinflint Chandler trust-fund babies closed NY newsday, Tribune tried to squeeze ever higher profit margins out of something that was already making margins most CEOs would kill for, and then the wackiness of Sam Zell. I mean, they are so demoralized that they were actually eagerly anticipating working for Rupert Murdoch.
@Maura Johnston: You were the only person watching the Newsday Channel
@afraidofauntieem: Just wait til they meet new Editor-in-Chief Isaiah Thomas.
Um, I think this about some sort of vaguely conceived notion of "synergy" between Newsday and News12. The News12 arm of the company falls under the control of Charles Dolan and the other son, whose name slips my mind. Jimmy doesn't have much influence on this, which is why it's probably a wise business move.
@TheHonJudgeSmails: Brilliant, as expected.
Cablevision does two things well - they also provide you with the absolute worst customer service. Try scheduling an installation.... just try.... see when (if) it comes.
@overunderover: Time Warner isn't noticeably better. There's a feeling you get when the customer service rep says, with absolute nonchalance, "Yep, that means the box is broken. Will someone be home next Tuesday between 10 and 3?" and that feeling is called wanting to tear someone's eyes out with your own fingers.
Finally, The Dolans figured out the best way to get the Knicks positive headlines in a newspaper...
@YourGoldKeith: "Inother news today, only one reporter was allowed in the post-game press conference after the Celtics defeated the Knicks 130-79..."
@moff: Wow, you've actually gotten to speak with someone!??!
It's just a way of finding a place for Thomas.
I bet Murdoch buys it from them for $300M within 3 years.
Apropos of nothing, James Dolan is the sort of idiot manager who will read one of those "Seven Secrets to Successful blah blah blah" management guides, pull one random theory from the book completely out of context and then decide, say, that desk-chairs are one of the "56 symptoms of an inefficient workplace", then have them all removed.
This account has been thinly fictionalized. It wasn't desk-chairs.
@overunderover: Nice. I just loled.
@nottobeconfusedwith: This will certainly help Newsday reinvigorate its faltering credibility.
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