Cablevision won the bidding war for the Long Island paper. And Sam Zell makes $650-million on the deal.

We figure a bidding war is better than a rummage sale. Right?

Sam Zell is contemplating three similarly structured offers to buy Newsday, trying to figure out which best fits his strategic plans without pissing off Rupert Murdoch too much.

Newsday as the very inside baseball story here.

Sam Zell sold Newsday low.

CNN's Fortune reports:

Nobody's timing was better at the top of the last boom than Sam Zell. Just before the credit markets collapsed, he sold his real estate empire for $36 billion. Now Zell is trying to sell newspapers, and his timing couldn't be worse.

Poor Zell. We'd feel bad for him...if it was Opposite Day.

Everyone is breathing a little easier in the new Zell era. Well, everyone who smokes that is. The Trib has decided to stop charging smokers a fee for lighting up:

From: Tribune Communications Sent: Tuesday, April 22, 2008 1:32 PM Subject: Message from Gerry Spector/Tobacco Use Fee Rescinded

Since the closing of the going-private transaction last December, we've been reviewing policies and practices across the company, including Tribune's healthcare benefits. While well-intentioned, we think the tobacco-use fee implemented by the previous management team is inconsistent with the new culture we're developing---we'd rather you use your own judgment when it comes to tobacco use, not impose ours upon you.

This policy was a part of open enrollment last fall and took effect January 1, 2008. I'm pleased to tell you that we're eliminating this fee effective April 28th.

If you successfully participated in the smoking cessation program, have quit and been reimbursed for all fees, then congratulations are in order. Quitting is one of the hardest things you'll ever do.

If you're still being charged the fee, it will stop and Tribune will reimburse you 100 percent for the fees you have paid. This reimbursement will occur in late May.

Tribune will continue to offer the smoking cessation program free of charge to all employees and their covered dependents age 18 and older.

The spousal medical fee, implemented at the same time, will remain in place. We believe that if an employee's spouse has access to coverage through his/her employer, that employer has the primary responsibility to bear the cost of coverage. Our obligation is to take care of our own employees, first and foremost.

If you have questions about the tobacco use fee, contact the Tribune Benefits Service Center at XXX/XXX-XXX.

Thanks.

Gerry

Apparently the Trib's plan for cutting costs? Lung cancer attrition.

LA Times publisher David Hiller was interviewed by Forbes and gave us some settling or unsettling news - depending on who you want to sign your checks:

Have the two of you discussed the possibility of seeking a buyer for the Times?

Sam has said he would like to keep the Times.

So the recent reports that Zell is negotiating a possible sale of the paper to David Geffen are erroneous?

You'd have to ask him.

And he was asked by the Chicago Tribune if he's still has cash flow issues.

But Zell, when asked directly about Tribune's liquidity, responded by saying he expects the company to be able to meet its payments.

Well, yeah that's what you say to what you call 'overhead'.

Per Newsday:

Sam Zell, currently $12.8 billion in debt with the Tribune Co., is reportedly structuring a possible sale of Newsday in a way that could save him hundreds of millions of dollars in capital gains taxes.

The idea of a non-cash asset swap has been swirling about talks with suitors for Newsday, including News Corp. chief and New York Post owner Rupert Murdoch and New York Daily News owner Mort Zuckerman.

Any deal could potentially save the media mogul between $175 million and $245 million in capital gains tax. Or as Zell calls it, pussy money.

We're not entirely sure what to make of this report, but you can read it all at Deadline Hollywood Daily and LAO.

With just a little less profanity than the Nixon tapes, NPR's All Things Considered ran a story about Sam Zell and used clips of his meetings with reporters.

"This is the first unit of Tribune that I've talked to that doesn't generate any revenue. So all of you are overhead," Zell said during the late February meeting with editors and reporters for the company's Washington bureau.

When you get called 'overhead' you ceased to be drunk or incompetent. So...there's a plus, right?

Per E&P: The Tribune Co. named Marc Chase president of Tribune Interactive with a press release that lives up to the company's new-found sense of humor (so long as you're not making fun of Sam Zell, that is).

The press release begins: "Another freaking Clear Channel Communications executive on the payroll and this one's been named President of Tribune Interactive."

And it goes on from there in a manner that will likely make employees feel so much better about newsroom job cuts and dwindling resources.

continued...

Tribune's mad dash for cash might have some more repercussions here in Los Angeles. If things don't perk up, FBLA has heard that the LAT Orange county production facility will be closed in January, 2009, with 41 workers losing their jobs. But imagine the savings.

Sam Zell has a payment due in December of $650 million, and over a billion in 2009, so what happens if the payments aren't made?

Earlier:
Zell Conference Call April 17th