Date
24 November 2017
The New York Daily News has been plagued by falling advertising sales and thinning subscribers who have been switching to online news channels. Photo: Bloomberg
The New York Daily News has been plagued by falling advertising sales and thinning subscribers who have been switching to online news channels. Photo: Bloomberg

Cablevision to offer US$1 for troubled NY paper

Cablevision Systems Corp. is planning to make an offer for the New York Daily News as early as this week.

The offer values the troubled tabloid at just US$1, Reuters reported Tuesday, citing a person familiar with the matter.

Last month, New York media and real estate magnate Mortimer Zuckerman said he was considering selling the newspaper and had hired Lazard Ltd. to help with the process.

The move underscores the declining readership and plunging advertising revenue that have plagued the tabloid for years.

Cablevision’s bid takes into account the newspaper’s reported US$30 million annual loss and US$150 million investment in a printing press, as well as declining circulation that relies heavily on newsstand sales rather than on subscriptions, the source said.

Cablevision declined to comment while a representative for the New York Daily News could not immediately be reached for a comment.

Newspapers are not the only part of the media industry which is struggling.

Cable distributors such as Cablevision and its larger rivals also have been under pressure to stop consumers from dumping their cable subscriptions as subscribers shift to internet services such as Netflix and Hulu.

Cablevision also owns suburban newspaper Newsday.

The company, which is controlled by New York’s Dolan family, said last month video customers fell 4.7 percent to 2.68 million in the fourth quarter to Dec. 31.

Zuckerman is co-founder, executive chairman and former chief executive of Boston Properties Inc., a real estate investment trust.

New York Daily News’ cross town rival, the New York Post, is owned by Rupert Murdoch’s media conglomerate News Corp.

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CG/RA

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