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Murdoch Nabs Agreement from Tribune Co. for ‘Newsday’

Rupert Murdoch has succeeded in nabbing an agreement in principle from Tribune Co. to purchase Newsday for about $580 million in what would be a joint venture.

Murdoch’s News Corp. would own most of the company, with Tribune keeping a stake of less than 5 percent, according to Reuters. Such a purchase would allow News Corp. to wipe out as much as $50 million in annual losses from the New York Post; a combined Newsday-Post operation would earn roughly $50 million, said a person familiar with the situation.

The deal would also be a key to Tribune chief Sam Zell in helping reduce debt at his newly acquired company. Zell took Tribune Co. private last year in an $8.2 billion buyout last year.

Announcement of a deal may not come for three or four weeks.

While Murdoch believes Newsday will give his New York Post a more secure future, he thinks it is likely that U.S. antitrust officials may slow a sale.