News Corp. drops bid for Newsday purchase

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News Corp. has withdrawn its $580 million bid for the Tribune Co.'s Long Island newspaper Newsday, leaving Cablevision Systems as the lead bidder. New York Daily News owner Mortimer Zuckerman also has been in the running for the paper.

A News Corp. spokeswoman confirmed the dropping of the bid during the weekend just days after News Corp. chairman and CEO Rupert Murdoch had predicted he would clinch the deal despite a higher $650 million bid by Cablevision (HR 5/7). She didn't detail reasons for the decision. However, a source said that News Corp. felt matching Cablevision's bid would not make sense, especially after weak quarterly earnings reported by Tribune on Friday.

A final decision on the Newsday sale is expected in the coming days. (partialdiff)
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