Cablevision, Tribune Co seal deal for Newsday

NEW YORK, May 12 (Reuters) - Cablevision Systems Corp (CVC.N) 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 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)