Cablevision empire adds amNewYork

The profitable, 300,000-plus free daily amNew York will be sold, along with its parent Newsday, to Cablevision for $650 million in a bid that has critics howling. They say Cablevision overpaid and they question whether profits from Newsday will even cover the debt service for $650 million. Newsday had profits of $90 million last year, which means Cablevision is willing to pay 6.5 to 7 times cash flow.

What this means to amNewYork is anybody's guess. There has been little media coverage about that part of the deal. It's hard to imagine amNewYork being sold off since it depends greatly on Newsday for content and ads. But if Cablevision overpaid, cutbacks will certainly follow at the newspapers which could hobble amNewYork at a stage when it is becoming a force in New York media.