Tuesday morning headlines

Murdoch to buy Newsday: Purchase price is expected to be $580 million, with final details still being hammered out (especially on the tax side). It's Tribune’s first big asset sale under Sam Zell’s reign, and the big question of course is whether there's more to come - including the LAT. The deal would have Newsday becoming part of a joint venture with News Corp.'s NY Post (Tribune would retain a stake of less than 5 percent). Expect heavy scrutiny by regulators. (WSJ, Newsday)

Journal editor is out: Marcus Brauchli is stepping down after less than a year in the top job - and just four months after Rupert Murdoch took control of the paper. The chatter this morning would indicate that he's being forced out, but it’s just chatter. Robert Thomson, who Murdoch brought in as publisher, will take over the top spot on an interim basis. From the NYT:

Since December, when Mr. Murdoch’s News Corporation bought Dow Jones & Company, publisher of The Journal, he has immersed himself in the newspaper’s daily operations and quickly made changes in its shape and style. Friends and colleagues say that Mr. Brauchli has been frustrated with some changes, and with the sense that he did not have the control over the newspaper that he was promised.

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Journal newsroom employees say that Mr. Murdoch and the have made it clear that they think the paper has too many editors, and have instructed Mr. Brauchli to thin the ranks, potentially making room in the headcount for more reporters. Two people briefed on Mr. Brauchli’s thinking said that had become a major point of contention.

D-day at Yahoo: Earnings are due out later today, and investors will be especially interested in the company's online advertising business. The strength of that sector has been one of Yahoo's chief defenses against a hostile takeover by Microsoft – as well as in its efforts at getting a higher offer. "We expect management to have pulled out all the stops to drive up Q1 performance," said Bernstein analyst Jeffrey Lindsay. (NY Post)

Disney goes natural: The Mouse House is getting lots of attention by setting up a separate film division that will focus on nature films. CEO Bob Iger said the success of Warner's "March of the Penguins" and the Discovery Channel's "Planet Earth" got them thinking about the genre. Nature films have broad appeal around the globe, which is another plus. (NYT)

Digital Domain makes debut: The Venice-based special effects giant is expected to be priced either today or tomorrow. They're looking to sell 6 million shares at $12 to $14 each. But Tom Petruno at Money & Co. reports only limited interest on Wall Street (the company has had operating losses since 2005).

Clinton holds big lead: The Intrade market prices for today's Pennsylvania primary give the NY senator a 90.5 percent chance of winning. Intrade has been wrong before, but it won’t happen tonight. Final polls out this morning have Clinton's lead lengthening a bit. Zogby has it at 10 points, which seems right. (RealClearPolitics)

Where's the Fortune 500?: Try Texas. With 58 headquarters, the Lone Star State passed New York as home to the nation’s biggest companies. NY has 55 and California has 52 (though much of the big action is up north). Texas is attractive because of low taxes, affordable land and large labor force. By the way, Disney was the largest local company on the Fortune 500, in 67th place. (AP)

Proposed insurance changes: They would require insurers to show premium trends for auto and homeowner policies over the last six years, as opposed to just three. Consumer activist Harvey Rosenfield says the inclusion of additional data could give insurers more options in arguing for a rate hike. (LAT)

Lacter on radio: This morning's business chat with KPCC's Steve Julian covers the local employment outlook, gas prices, and federal raids on businesses suspected of employing undocumented workers. It’s also available on KPCC.org and through podcast.