Cablevision, Tribune Co seal deal for Newsday

NEW YORK, May 12 (Reuters) - Cablevision Systems Corp (CVC.N: Quote, Profile, Research) sealed a $650 million deal to buy 97 percent of Newsday Media Group from Tribune Co, the companies said on Monday, after Rupert Murdoch's News Corp (NWSa.N: Quote, Profile, Research) withdrew its bid.

The deal values the Long Island newspaper Newsday at $632 million, with Tribune Co also receiving $18 million at closing as prepaid rent under certain leases of property used in the business, the companies said.

The agreement was expected after News Corp said on Saturday withdrew its $580 million bid for the daily newspaper because it could not justify outbidding Cablevision from an economic perspective.

New York Daily News owner Mortimer Zuckerman had also bid $580 million for Newsday. (Reporting by Robert MacMillan and Tiffany Wu; editing by John Wallace)