This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Deal: Tribune Makes Split Official

NEW YORK ( The Deal) -- Tribune (TRBAA) said Wednesday, July 10, it plans to split its newspaper operations into a separate entity, freeing the recently reorganized company to focus on its more lucrative broadcasting business.

The announcement comes just weeks after Chicago-based Tribune, which emerged from Chapter 11 protection in December, said it would acquire a portfolio of 19 television stations by purchasing Local TV for $2.72 billion. Post-deal, Tribune would own 42 local television stations in 33 markets, along with WGN radio and television, studio and digital assets and stakes in CareerBuilder and the Food Network.

Tribune said all of those assets would remain inside the company, while the newly formed Tribune Publishing Co. would contain publishing assets including the Los Angeles Times, Chicago Tribune, The Baltimore Sun, Sun Sentinel (South Florida), Orlando Sentinel, Hartford Courant, The Morning Call and Daily Press.

The company said the split is the result of Tribune's board and management's post-bankruptcy process of evaluating options in search of growth.

"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," said Peter Liguori, who was named Tribune CEO in January. "In addition, the separation is designed to allow each company to maximize its flexibility and competitiveness in a rapidly changing media environment."

Rumors have circulated in recent months that Tribune was considering selling its newspaper assets, including reports that privately held Koch Industries, run by prominent Republican donors Charles and David Koch, was interested in acquiring the titles. Other potential buyers that have been mentioned in reports include Berkshire Hathaway (BRK.B - Get Report) and Freedom Communications.

Liguori said that post-split each business would generate more than $1 billion in annual revenue and "significant" cash flow.

The deal is subject to conditions including regulatory approvals, opinions from tax counsel and additional due diligence, and is expected to take about one year to complete.

Written by Lou Whiteman

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BRK.B $141.29 -1.00%
AAPL $118.73 -2.10%
FB $93.63 -0.40%
GOOG $628.74 0.50%
TSLA $259.73 -2.40%

Markets

Chart of I:DJI
DOW 17,528.65 -161.21 -0.91%
S&P 500 2,090.18 -13.66 -0.65%
NASDAQ 5,094.4140 -33.8670 -0.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs