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Tribune Media, IRS agree to $200M settlement over Newsday sale

Tribune Media, IRS agree to $200M settlement over Newsday sale

Tribune Media has agreed to pay about $200 million to settle a tax dispute over the 2008 sale of Newsday under Sam Zell.

The settlement, reached Wednesday, covers capital gains taxes on the $650 million sale of the New York newspaper to Cablevision, which Zell hoped to avoid by structuring the deal as a leveraged partnership. The Internal Revenue Service challenged that strategy, as well as Tribune Media's sale of the Cubs, seeking about $500 million in assessments, penalties and interest on the two transactions.

Tribune Media took a $193 million second-quarter tax charge connected to the Newsday sale, and said in a Securities and Exchange...

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