Tribune To Split Into Separate Broadcasting, Publishing Companies
July 10, 2013 at 4:42 AM (PT)
TRIBUNE COMPANY will split into two separate companies, one consisting of its broadcasting assets (including Talk WGN-A/CHICAGO) and one including its newspaper assets, subject to regulatory approval. The plan will be developed over the next nine to 12 months and will result in each company having its own board of directors and senior management team.
The move, which follows the deal to buy the LOCAL TV HOLDINGS television stations, would place WGN radio in the new TRIBUNE COMPANY, along with 42 TV stations in 33 markets (including the 19 stations in 16 markets from LOCAL TV), cable's WGN AMERICA, TRIBUNE STUDIOS, TRIBUNE DIGITAL VENTURES, print feature syndicator TRIBUNE MEDIA SERVICES, real estate, and TRIBUNE's shares in CLASSIFIED VENTURES, CAREERBUILDER, and FOOD NETWORK. TRIBUNE PUBLISHING COMPANY would include the CHICAGO TRIBUNE, LOS ANGELES TIMES, BALTIMORE SUN, SOUTH FLORIDA SUN-SENTINEL, ORLANDO SENTINEL, HARTFORD COURANT, ALLENTOWN MORNING CALL, and NEWPORT NEWS (VA) DAILY PRESS.
“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 Pres./CEO PETER LIGUORI. “In addition, the separation is designed to allow each company to maximize its flexibility and competitiveness in a rapidly changing media environment.”
“The two companies resulting from this transaction would each have revenues in excess of $1 billion and significant operating cash flow,” added LIGUORI. “We expect that this transaction will serve our shareholders and employees well, and put these businesses in a strong position for continued success.”