It was one dollar too much for Cablevision Systems Corp (CVC.N). The cable company is planning to pull out of the auction process for the New York Daily News after spending hundreds of hours analyzing a potential deal, according to a person familiar with the matter.
Cablevision had bid just $1 for the tabloid newspaper in March, Reuters reported at the time. It is now planning to bow out ahead of a second-round bid deadline next week, the source said on Tuesday, asking not to be named because the process is confidential.
Cablevision, which owns the Long Island, N.Y.-based newspaper Newsday, could not justify paying even $1 for New York Daily News because of its poor financial condition and prospects, the person said. Even if Cablevision bought the newspaper's state-of-the-art printing press, it would have still lost money on the deal, the source said.
The DN is reported to be losing $30 million a year.
When Cablevision won't take the DN for even a buck, that's when you know it's in trouble.
Think about this story next time you see the DN editorial page get shrill over so-called "failing schools."
It's a newspaper that loses $30 million a year that isn't worth a dollar to Cablevision.
If anybody should know about failure, it's the Daily News.