Falling ad revenues could push Sam Zell's Tribune Company to sell Newsday, the Long Island newspaper with the 10th-highest circulation in the nation, the New York Times reports. Among those interested are Rupert Murdoch, who already owns the New York Post. Also in the running are the owner of the Daily News and the family that runs Cablevision. Tribune announced yesterday it lost $78 million in the fourth quarter.
Tribune has been saddled with debt since real estate mogul Zell took the company private late last year. Newspaper ad revenue dropped 15% in the fourth quarter, and Zell recently told Baltimore Sun staffers that “we may have to re-evaluate a lot of our decisions” in light of that trend. Tribune also owns the Los Angeles Times, Chicago Tribune, and the Chicago Cubs.