Report: Tribune Mulling Zell Bid; Reports Jan. Revs
February 26, 2007 at 6:20 AM (PT)
TRIBUNE CO.'s board is considering a bid from SAM ZELL, reports the WALL STREET JOURNAL, but is leaning toward restructuring on its own with a recapitalization spinning off the company's TV station division and paying a big dividend to shareholders. The "self-help" restructuring might also include a deal in which the ROBERT R. MCCORMICK TRIBUNE FOUNDATION would use the dividend to buy out the CHANDLER family's 20% interest in the company.
ZELL's bid came after the deadline for bids passed; the report indicates that ZELL's proposal would take time to implement, a situation of which the TRIBUNE board is not in favor.
Tribune January Revenues Slip
The embattled company saw revenues drop 5% overall to $442 million in JANUARY, with publishing ad revenues off 7.3% year-to-year to $268 million and TV revenues off 1.5%. The company's radio/entertainment division revenues fell 0.7%. TRIBUNE does not report revenue breakouts for its only radio property, WGN-A/CHICAGO.