News Corp. stays with Cablevision - Broadcasting & Cable

News Corp. stays with Cablevision

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News Corp. opted Friday not to split from Cablevision Systems Corp. on
their regional sports partnership, undoubtedly a huge relief for the cable
operator.

Had News Corp. exercised its put on the regional sports partnership,
Cablevision would have been stuck with a stiff $1 billion payment.

Now, the partnership -- which includes Fox Sports Nets and other regional
sports channels, as well as Madison Square Garden -- remains essentially intact until December
2005, with Cablevision keeping its 60 percent stake and News Corp. retaining 40
percent.

To even out its investments, News Corp. did elect a secondary option,
reducing its 50 percent stake in two regional nets -- Fox Sports Net Chicago and
FSN Bay Area -- down to 40 percent.

That will cost the partnership about $100 million,
clearly a milder number.

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