Rupert Murdoch's News Corp. has joined the Chandler family in its bid for newspaper and television station owner Tribune Co., a source familiar with the matter said on Tuesday.
The source said News Corp.'s participation is considered small and Murdoch's goal is primarily to cut printing and back-office costs at his media conglomerate's money-losing New York Post newspaper.
“If their bid is successful (they) would do some deal and have some sort of operating agreement with the Post and Newsday ……that would be financially advantageous through cutting costs,” the source said.
News Corp. is not interested in buying Tribune's Newsday outright as U.S. media ownership laws could prevent the company from owning another newspaper in the New York region, the source said.
The Chandler family, who are Tribune's biggest shareholder, News Corp. and Tribune all declined to comment.