July 12, 2013

TRIBUNE COMPANY SPLITS

img-los-angeles-times_152127836245.jpg_standaloneThe Tribune Company, owner of the Los Angeles Times, has recently announced its decision to split into separate broadcasting and publishing companies, which is somewhat of a surprise as the company announced in February that it would be looking for a buyer to sell the papers.  Interested bidders included Charles and David Koch; Aaron Kushner, the owner of The Orange County Register; and a group led by Eli Broad, the Los Angeles billionaire.  The list of potential buyers has generated its own news, as there have been many debates over who would be a suitable candidate to take over the publications.  The split solution however, suggests that perhaps there is a lack of buyers out there willing to pay the price The Tribune was hoping for, it would also help avoid a large tax bill, which would occur if the company decided to sell.   While it now seems that a sale might not be the future for the newspapers there is still time as the necessary filings of the split companies will take months to prepare and may urge interested buyers to push for a sale.

 In making the announcement, Peter Liguori, CEO of The Tribune, explains “Moving to separate our publishing and broadcasting assets into two distinct companies will bring single-minded attention to the journalistic standards, advertising partnerships and digital prospects of our iconic newspapers, while also enabling us to take advantage of the operational and strategic opportunities created by the significant scale we are building in broadcasting.  In addition, the separation is designed to allow each company to maximize its flexibility and competitiveness in a rapidly changing media environment.”

 Tribune Co. Files For Bankruptcy Protection
The broadcasting company will include 42 television stations while the publishing company will include the Los Angeles and Chicago papers along with The Baltimore Sun, The Sun Sentinel in Florida, The Orlando Sentinel, The Hartford Courant and The Morning Call in Pennsylvania.  Read More

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