The media and telecom sectors saw some new dealmaking developments that raised market interest Monday. Overall, the broader markets were surging partly on the decrease of the price of oil, raising hopes that U.S. consumers will have more discretionary income. The Dow was up 94.28, or .71%, to 12,836.74, and the Nasdaq was up 29.05, or 1.19%, to 2474.57 in Monday midday trading.
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Leading Monday's headlines is Cablevision Systems Corp.'s [CVC] $650 million acquisition of 97% of Newsday Media Group, the publisher of the daily Long Island newspaper of the same name, from cash hungry Tribune Corp. The deal follows Rupert Murdoch's News Corp.'s withdrawal of its $580 million bid for Newsday on Saturday. Tribune will hold on to 3% of Newsday. As part of the deal, Cablevision will also receive free daily amNewYork and Star Community Publishing, its weekly newspapers.
Meanwhile, shareholders flocked to shares of wireless communication company Sprint Nextel Corp. [S], which registered as the highest traded stock by midday on volume of 23.1 million. Sprint, which last week reached an accord with Clearwire Corp. to form a wireless broadband company, reported first-quarter proft (excluding some items) of 4 cents per share, surpassing expectations of 2 cents per share, according to Bloomberg. Sprint also said it was looking into divesting noncore assets.
Lastly, on the the media front, shares of Primedia Inc. [PRM] jumped 98 cents, or 18.7%, to $6.30 on news that a South African tribunal approved the Norcass, Ga.-based company's acquisition of New Africa Investments Ltd.'s radio station Kaya FM. - Gerald Magpily
