News Corp. closing in on Newsday

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Rupert Murdoch's News Corp. on Tuesday was considered to be close to a deal to buy Newsday from Tribune Co. for about $580 million.

The move could help Newsday and News Corp.'s New York Post save costs and boost the New York papers' bottom line. The Wall Street Journal, also owned by News Corp., said the deal would be structured as a joint venture, in which Tribune would retain a stake of less than 5%. Tribune CEO Sam Zell has signaled he could sell some assets to boost his firm's financial flexibility.

In a separate development Tuesday, Marcus Brauchli resigned as managing editor of the Journal less than a year after taking the job and a few months after News Corp. bought the Journal. He cited the need for the new Journal owners to name their own managing editor. Brauchli will remain a consultant for News Corp.

The two companies declined comment.
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