The Tribune Company says it intends to spin off broadcast & newspaper businesses
The Tribune Company this morning issued a statement stating that it intends to spin off its broadcasting and publishing businesses – ala News Corp – rather than sell off its newspapers as it had previously planned to do.
The Tribune Company would now be split into Tribune Publishing Company which would include its newspaper properties the Chicago Tribune, Los Angeles Times, The Baltimore Sun, Sun Sentinel, Orlando Sentinel, Hartford Courant, The Morning Call and Daily Press, and Tribune Company, which would include its 42 local TV stations, WGN Radio, Tribune Digital Ventures, as well as its equity interests in Classified Ventures, CareerBuilder and The TV Food Network.
The two companies resulting from this transaction would each have revenues in excess of $1 billion and significant operating cash flow,” said Peter Liguori, Tribune’s president and chief executive officer. “We expect that this transaction will serve our shareholders and employees well, and put these businesses in a strong position for continued success.”
“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 Liguori. “In addition, the separation is designed to allow each company to maximize its flexibility and competitiveness in a rapidly changing media environment.”
Unlike a similar move by News Corp, the Tribune Company’s effort does not seem to want to hide the fact that it wants to isolate its newspaper properties. Rather than marrying the papers with its investment in Classified Ventures, or its Tribune Digital Ventures, the move brings these over to the broadcast side.