Salvaged publisher's newspapers set for sale
Tribune - which completed its bankruptcy paperwork this week - has not announced the sale of assets, but it is likely to do so in the next several months so it can streamline its business said Reed Phillips, a managing partner of DeSilva & Phillips, a media banking firm.
The troubled state of the newspaper industry makes those assets most likely to be sold, he added. Less clear is whether the company will sell them all at once or by region. "The company is too large and complex right now, coming out of bankruptcy," Mr Phillips said. "What's needed is a more focused strategy."
Aaron Kushner, the chief executive of Freedom Communications and publisher of The Orange County Register in California, confirmed on Monday that he was eager to buy Tribune's newspapers.
He said that from what he had gleaned from bankruptcy court filings and public pension documents, it seemed likely Tribune would sell its newspapers as a group. That is because the company has such complex pension obligations and corporate overheads that it would be difficult to untangle them and sell properties individually.
"We're interested in all of the papers, though obviously, from an outside perspective, we have not seen the numbers," said Mr Kushner. "If papers are sold, someone has to be responsible for the pensions."
The company's reorganisation plan was approved in July by the US Bankruptcy Court in Delaware. It received final approval from the Federal Communications Commission in November.
The announcement on Monday ended a four-year process for the company. Its assets were tied up in court while the media industry continued its digital transformation. In a letter to employees, Eddy Hartenstein, Tribune's chief executive, acknowledged that the past four years had been "challenging."
The end of the bankruptcy has led to plenty of speculation about who might buy Tribune's newspapers, with names including Rupert Murdoch and David Geffen floated as contenders. Mr Phillips said he was sceptical that Mr Murdoch would be a serious bidder because his company had so much else on its plate.
"I would think they would take a look," said Mr Phillips. "But when it comes to stepping up and making a substantial offer, I would be surprised. They're already splitting off the publishing business from the entertainment business."
The New York Times
Frequently Asked Questions about this Article…
Tribune Co.'s holdings that are most likely to be marketed include major titles such as The Los Angeles Times and The Chicago Tribune, along with the company's other regional newspapers.
Now that Tribune has completed its bankruptcy paperwork and received court and regulatory approvals, executives and advisers say the company may sell assets to streamline operations and adopt a more focused strategy amid a troubled newspaper industry.
Industry advisers in the article say sales are likely to be announced in the next several months after Tribune completed its bankruptcy process, though no formal sale timetable has been released.
It is unclear. Some advisers suggest Tribune could sell papers regionally, but Aaron Kushner and others think the papers might be sold as a group because complex pension obligations and corporate overhead could make piecemeal sales difficult.
Names floated in the article include media figures such as Rupert Murdoch and David Geffen, while Aaron Kushner — publisher of The Orange County Register and CEO of Freedom Communications — has confirmed interest. No formal bidders have been announced.
Tribune's complex public pension obligations are a major factor: they could make it hard to split assets and may require a buyer or buyers to assume pension responsibilities, which affects how attractive and feasible different sale structures would be.
The article notes that Tribune's assets were tied up in court while the media industry continued a digital transformation, and the troubled state of the newspaper industry is a key reason advisers expect print assets to be sold — buyers will weigh digital pressures when valuing properties.
Tribune's reorganisation plan was approved by the US Bankruptcy Court in Delaware in July and it received final approval from the Federal Communications Commission in November, clearing major legal and regulatory hurdles that had kept assets tied up for years.
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