NBC Universal Buys The Weather Channel for $3.5B
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New York -- NBC Universal and two partners said they have reached a deal to buy The Weather Channel from Landmark Communications Inc., ending a drawn-out process that had attracted interest from several major media companies.

Financial terms weren't disclosed, but a person familiar with the matter who insisted on anonymity said the purchase price was $3.5 billion in cash. NBC was joined in the deal by the private equity firms The Blackstone Group LP and Bain Capital LLC.

In addition to The Weather Channel, which can be seen by 97 percent of U.S. cable subscribers, the deal also includes several related assets such as weather services for newspapers and radio stations and the widely used Web site Weather.com.

NBC Universal, a unit of General Electric Co., became the sole bidder for The Weather Channel last month after Time Warner Inc. dropped out. CBS Corp. and cable industry leader Comcast Corp. had also expressed interest earlier.

NBC already operates a digital weather and news service called NBC Weather Plus that was launched in 2004 and would make a logical fit with The Weather Channel. NBC Weather Plus is owned by NBC and its affiliated TV stations and can be seen on digital cable services and digital subchannels operated by NBC stations.

NBC and Landmark said in a statement that The Weather Channel would be operated as a separate entity out of its base in Atlanta. They said they expected the transaction to close by year-end, pending regulatory approvals.

CBS Buys Online Info Site CNet for $1.8 billion
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New York -- Media and entertainment company CBS Corp. is buying CNet Networks Inc., an online news and information provider, for $1.8 billion in cash in its latest bid to expand its reach on the Internet, the companies announced. CBS's CEO Leslie Moonves told reporters on a conference call that acquiring access to CNet's large online audience in order to distribute media content from CBS was "a large part" of CBS' motivation in going after the San Francisco-based online company.

"Our idea is to have our content wherever, whenever you can get it, and adding CNet just makes that happen faster," Moonves said.

Despite the high premium CBS is paying for CNet, CBS's chief financial officer Fred Reynolds called the price "fair" said the acquisition would immediately add to CBS's earnings. CBS will fund the acquisition with cash on hand.

CNet was an early pioneer on the Internet, but its executives have faced harsh criticism from dissident investors in recent months who say the technology news and entertainment company should be doing more to restore the $1 billion in shareholder value that has disappeared since December 2005.

CNet is known for technology reviews, news and advice but has also expanded into entertainment areas with a stable of sites that includes ZDNet, GameSpot.com, TV.com, mp3.com. It also owns the highly valuable Internet domain name News.com.

Moonves said he saw opportunities for distributing CBS news, music and other content on CNet's online outlets, and also for tapping CNet's significant online advertising sales operation to boost over ad growth for the media company.

Cablevision Buys Newsday from Tribune for $650M
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New York -- Cablevision Systems Corp. is buying the Long Island-based newspaper Newsday from Tribune Co. in a deal valued at $650 million, the companies announced. Cablevision beat out media mogul Rupert Murdoch, CEO of News Corp., who withdrew his own $580 million bid on Saturday. New York Daily News owner Mortimer Zuckerman had also bid $580 million.

The deal brings Newsday back to local ownership on Long Island. Tribune had been seeking to sell Newsday to lighten an $8.2 billion debt load it took on last year when it went private in a deal orchestrated by real estate mogul Sam Zell.

Chicago-based Tribune will retain a 3 percent stake in a joint venture to be formed containing Newsday as well as several related assets, including Newsday.com, some regional magazines and the free daily newspaper in New York City amNewYork. Cablevision will hold the remaining 97 percent.

Cablevision said that with Newsday under its ownership it will be able to offer more diverse packages of advertising while also tapping Newsday's large variety of online content to offer interactive services to Cablevision's 2.3 million high-speed Internet customers.

Tribune had been the No. 2 newspaper publisher in the country prior to the Newsday sale, just head of the Sacramento, Calif.-based company McClatchy Co. With the Newsday sale McClatchy is sure to become No. 2, and Tribune No. 3, behind industry leader Gannett Co., which publishes USA Today.

Rainbow Media Acquires Sundance Channel ..
New York -- Rainbow Media Holdings LLC, a programming subsidiary of Cablevision Systems Corporation (NYSE: CVC), announced that it has reached an agreement to acquire Sundance Channel from General Electric Company's (NYSE: GE) NBC Universal, CBS Corporation's (NYSE: CBS) Showtime Networks, and entities controlled by Robert Redford. Sundance Channel reaches nearly 30 million subscribers and offers a diverse and engaging selection of films, documentaries and original programs.

For Rainbow Media, the purchase expands and strengthens its entertainment presence with the addition of a recognizable and desirable brand that attracts loyal viewers. Sundance Channel will join AMC, IFC and WE tv as another valuable and distinct network within Rainbow Media's portfolio of award-winning national services. For NBC Universal, Showtime and Robert Redford, the sale of Sundance Channel highlights their success in developing this heralded programming service.

Sundance Channel was launched in 1996 under the creative direction of Robert Redford and its brand reflects the values and attributes of its founder. Following this transaction, Sundance Channel will benefit from its continuing relationship with Mr. Redford, one of the most respected, admired and successful people in entertainment. Along with films and documentaries, Sundance Channel's original programming provides a mix of series and specials that promote artistic freedom of expression and the impact that expression can have on our world.

"We are always looking for strategic opportunities for our business and Sundance Channel adds another valuable asset to Rainbow's award-winning lineup of programming networks," said Cablevision President and CEO James L. Dolan.

Justice Dept. Approves XM-Sirius Merger
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WASHINGTON -- The Justice Department on approved Sirius Satellite Radio Inc.'s proposed $5 billion buyout of rival XM Satellite Radio Holdings Inc., saying the deal was unlikely to hurt competition or consumers. The transaction was approved without conditions, despite opposition from consumer groups and an intense lobbying campaign by the land-based radio industry.

The combination still requires approval from the Federal Communications Commission, which prohibited a merger when it first granted satellite radio operating licenses in 1997.

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Pendulum Media Buys Air America Radio
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NEW YORK -- Vermont businessman and former state government official Charlie Kireker is becoming Chair of the board of Air America Radio as his newly formed Pendulum Media agrees to purchase a controlling interest in the liberal talk network from Green Family Media. Kireker takes over from Stephen Green, who will remain on the Air America board.

Green Family Media completed its purchase of Air America from Piquant LLC in March 2007, six months after the network filed for bankruptcy under previous owner Piquant LLC. Air America President Mark Green and COO Scott Elberg will remain in place under the new ownership, and Philippe Collin has joined the company as SVP/GM of Interactive Media.

"I'm thrilled to become the Chair of one of the new, leading journalistic voices in America," Kireker said. "The investors in our group have great confidence in the future growth of Air America's audience and media reach."

Kireker said Green has "been instrumental in the effort to save and stabilize Air America" and continued, "Now in its fourth year of existence, Air America has consolidated its operations and is ready to pursue an expansion strategy and profitable growth in and after this pivotal election year."

Kireker is the co-founder and former Managing Director of Vermont venture capital fund FreshTracks Capital. He headed the Massachusetts Industrial Finance Agency in the 1980s and spent 10 years on the Council of Economic Advisors for then-Vermont Governor Howard Dean.

Digital Syndicate Network Buys Tom Kat Records

PORTLAND -- Digital Syndicate Network (DSN), has announced that it has entered into an agreement to purchase a controlling interest in Portland Oregon-based Tom Kat Records, Inc. Veteran broadcast veteran and music entrepreneur Thom King, who is head of parent company Southwest Multimedia and Multimediary Entertainment Marketing, which also owns Stumptown Records, founded Tom Kat Records.

"I am excited to have been able to partner with DSN. I feel that Tom Kat Record artists will be getting tons of exposure through the DSN network of sites that will result in increased record sales" - stated King. "This made good sense for everyone involved and I am eager to start signing new artists."

DSN President Guy W. Giuliano has named Denise Pearcy as VP of Artist Relations for the new label, and Scott Bergevin as head of A&R. Both Pearcy and Bergevin are veterans of DSN's music download service dsnMusic.com. "It is my pleasure to be paired with such a stellar team,

DSN Music and Tom Kat Records are the perfect match" - Pearcy said.

Giuliano and King have been partners on many ventures over the years, including broadcast radio, television, and internet projects. "Thom has built up many successful brands over the years, we are very excited about this venture" - said Giuliano. "We are looking for fresh new talent to join our label and showcase them via our various media platforms."

Tom Kat Records' latest project is hard rock group Dust from Iceland, which recently made its debut in the United States at the South by Southwest conference in Austin, TX. The label has also been the home of Los Angeles-based rockers Cage9 and Envy of Nona.

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