Ex-Trib Co. paper's value falls $450 million

Cablevision Systems Corp. said Monday it's writing down the value of a Long Island newspaper it purchased last year by $375 million to $450 million, according to a filing with the Securities and Exchange Commission.

The pretax impairment charge will wipe out nearly 70 percent of the $650 million Cablevision paid to acquire Newsday Media Group from Tribune Co. last July. Tribune, the owner of the Los Angeles Times and other papers, filed for Chapter 11 bankruptcy in December.

Cablevision said the charges "reflect the continuing deterioration of values in the newspaper industry and the greater-than-anticipated economic downturn" that has hurt the paper's advertising business.

The charges, which will be reflected in the company's 2008 earnings report, won't result in any material future cash outlays. Cablevision is scheduled to report fourth-quarter earnings Feb. 26.

Cablevision had planned for Newsday's print and online content to supplement its own cable TV service, which it provides to over 3 million subscribers in the New York metro area.

The Newsday group also includes the free New York daily amNewYork; Newsday.com; magazine publisher Island Publications; and Star Community Publishing, which prints weekly shopper guides.

Bethpage, N.Y.-based Cablevision also owns Madison Square Garden, the New York Knicks basketball team, the New York Rangers hockey team and several cable channels, including AMC and Sundance.

Shares of Cablevision rose by 5 cents to $15.16 in midday trading.