Murdoch & Zell: Why are These Men Smiling?

News that the current managing editor of the Wall Street Journal is leaving and that new owner Rupert Murdoch will shortly put his own person in situ, combined with a recent study of the WSJ in the weeks since Murdoch's purchase all point to the same conclusion: Murdoch's got his fingerprints all over the thing. So much for the "no editorial Interference" claim with which he wooed the Bancroft family. One one level, given the Journal's stance as the standard bearer for free markets, they should be the last to complain. However, it just goes to show, that Murdoch is as Murdoch does.

At the same time, there is news that Sam Zell will sell Newsday to Murdoch for some $580 million, about six times its cash flow. A low price in real estate terms but an amazing price for Zell when you consider that as has been widely reported, Zell purchased the entire Tribune Company with only some $350 million of his own cash and much of the rest of the more than $7 billion through a complex tax advantaged employee stock option plan vehicle --It sounds like Zell will now have none of his own money in the Tribune and about $200 million in his pocket. Wow! that's some deal. Sounds like Zell should be doing those "No Money down" late night infomercials.