Tribune close to accepting Zell's offer

Tribune Co. (NYSE: TRB) is close to accepting Sam Zell's $8 billion offer to take the company private, ending a soap opera that's gone on for too long.

The owner of the Los Angeles Times and Chicago Tribune will probably reach an agreement with Zell by a self-imposed deadline of March 31, people familiar with the matter told Bloomberg News. Zell's offer values Chicago-based Tribune at $33 a share, a 6.8 percent premium over yesterday's close.

Zell plans to create an employee stock ownership plan to finance the debt needed for the acquisition, Bloomberg says, adding that billionaire plans to keep the company in tact.

Tribune should take Zell's money and run as fast as it can to the bank.

I've questioned before whether the grave dancer really understands what's he has gotten himself into. If Zell is a success, I will gladly admit that my skepticism is wrong. Still, I bet that this isn't the last private equity deal among newspaper publishers.

Gannett Co. (NYSE:GCI) and McClatchy Co. (NYSE:MNI) would seem like logical candidates to go private. Though like other publishers they are struggling, Wall Street has considered both companies to be well run. McClatchy's reputation, though, took a hit when it acquired Knight Ridder. Gannett has the advantage of owning both USA Today and strong local media franchises.

All newspaper publishers are better off out of the public markets.