Continue reading Service employees union boss takes it on the chin

Service employees union boss takes it on the chin originally appeared on BloggingStocks on Thu, 27 Nov 2008 11:02:00 EST. Please see our terms for use of feeds.

Tribune, formerly a public newspaper and broadcast company, lost the publisher of its largest newspaper, the LA Times, and the editor of its flagship, the Chicago Tribune. New controlling shareholder Sam Zell is in trouble, burdened by buyout debt he may not be able to pay.

Most analysts saw another modest drop in newspaper ad revenue this year. It has been much worse than that. At some companies in the industry, ad sales are off nearly 15%. An analyst recently dropped his price target on The New York Times Company (NYSE: NYT) to $8 and said the firm would have to cut its dividend. The stock currently trades at $13.21.

The two public companies which are at most risk for not making it another year are Gatehouse (NYSE: GHS) and McClatchy (NYSE: MNI). Both took on big debt loads buying newspaper properties. Both are seeing operating income chopped by falling sales. Either could hit debt service problems which could force them to sell properties of file for Chapter11.

Gatehouse dropped as low as $1.11 in the last few days. Its 52-week high is $19. McClatchy is down to $4.93 from a 52-week high of $28.65. Gatehouse is the most troubled with a high dividend and $1.3 billion in long-term debt.

Newspapers companies have gone from being in a tight spot to being candidates for liquidation. They are a short-seller's dream.

Douglas A. McIntyre is an editor at 24/7 Wall St.

As Tribune loses executive, some newpapers move toward Chapter 11 originally appeared on BloggingStocks on Tue, 15 Jul 2008 09:55:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• According to people familiar with the situation, the Wall Street Journal reported that Yahoo! Inc (NASDAQ: YHOO) is again talking to Time Warner Inc (NYSE: TWX), this time about taking over AOL, with Time Warner taking a stake in the combined entity. News Corporation (NYSE: NWS) has its eye on any Yahoo moves. Meanwhile, Microsoft Corporation (NASDAQ: MSFT) is considering what its next move against Yahoo might be and is talking to News Corp.
• The Wall Street Journal also reported that, as part of the company's plan to cut costs, Tribune Co's Los Angeles Times newspaper may look to cut about 250 jobs, including about 17% of its news staff.
• The Financial Times reported that Chrysler, which has been searching for foreign partnerships, signed with China's Great Wall Motor a memorandum of understanding to explore long-term business ties in areas that include technology, distribution and components.

• According to the Dallas News, AMR Corporation's (NYSE: AMR) American Airlines informed its flight attendants' union that is may lay off 900 flight attendants on August 31.

• Yonhap reported that LG Electronics will release "Dare," a new touch-screen mobile phone in the U.S. that will compete with Apple Inc's (NASDAQ: AAPL) latest iPhone models.

Newspaper wrap-up: Yahoo talks to Time Warner as Microsoft considers its next move originally appeared on BloggingStocks on Thu, 03 Jul 2008 08:00:00 EST. Please see our terms for use of feeds.

Many years ago, I stopped my subscription to the Los Angeles Times. The main reason was that I could find much of my news for free on other sites.

Like many other traditional media companies, the L.A. Times didn't make a smooth transition to the Web. Even though it's located in the heart of Hollywood, it's been TMZ.com that has built a strong entertainment franchise.

Well, the L.A. Times hasn't given up. In fact, the company has made a strategic investment in Mixx, which is a social news site that's similar to Digg.com. The amount was not disclosed (other than it was a "small" stake).

All in all, it looks like a good move. Mixx has a stellar team with backgrounds at places like Yahoo! Inc. (NASDAQ: YHOO), AOL and USA Today.

Basically, I think it could be a good way to get some insight into the fast-moving social media world. And sometimes it's better to be late to the game. After all, don't the pioneers often have arrows in their back?

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

L.A. Times plays catch-up online originally appeared on BloggingStocks on Wed, 05 Dec 2007 15:24:00 EST. Please see our terms for use of feeds.

• The office of the Massachusetts secretary of state is investigating whether Bear Stearns (NYSE: BSC) improperly traded mortgage-backed securities for its own account with two hedge funds that failed this past summer, without notifying in advance the funds independent directors, reported the Wall Street Journal.
• The Schork Report's Stephen Schork sees an oil correction coming and predicted oil in the $65-$68 range, according to the Wall Street Journal's "Heard on the Street" column.

• Insurer Aetna (NYSE: AET) has instituted a tighter reimbursement policy for Amgen's (NASDAQ: AMGN) anemia drugs, creating a setback for Amgen, reported the Los Angeles Times.
• A consortium led by Icelandic investor Baugur is interested in making an offer for Saks (NYSE: SKS), reported the New York Post, but Saks will not consider a sale until the credit market improves.
• From BusinessWeek's "Inside Wall Street" section:
  
• BusinessWeek suggested that US Airways' (NYSE: LCC) poor performance compared to it's competitors makes it an attractive target to be bought.
• Rami Rosen of investment firm Oscar growth believes pacts like Radware's (NASDAQ: RDWR) venture with International Business Machines (NYSE: IBM) will help to drive growth.
• BusinessWeek hailed Amazon's (NASDAQ: AMZN) performance, saying it is one of the few internet companies that has beaten Google (NASDAQ: GOOG).

Newspaper wrap-up: Some see bubble in oil originally appeared on BloggingStocks on Fri, 19 Oct 2007 09:15:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• American Electric Power (NYSE: AEP) has agreed to pay penalties totaling $15M to end a Clean Air Act lawsuit brought by the Justice Department for the EPA, reported the Wall Street Journal (subscription required).
• In 1992 Ecuador left OPEC, but this month is expected to rejoin the organization, according to the Wall Street Journal.
• Barron's Online's (subscription required) "Inside Scoop" section reported that Warren Buffett exercised call options to purchase 7.847M shares of Burlington Northern Santa Fe (NYSE: BNI).

• The UK is going to purchase 140 armored vehicles from Force Protection (NASDAQ: FRPT) for use in Iraq and Afghanistan, according to the Associated Press.
• India's Reliance Retail has won the exclusive marketing and distribution rights for Apple (NASDAQ: AAPL) stores in India. The first Apple-owned store in India is scheduled to open at the end of this month, reported the Economic Times.
• Independent movie studio Lions Gate Entertainment Corp (NYSE: LGF) has signed a partnership agreement with Mexican media conglomerate Grupo Televisa (NYSE: TV) to make movies and TV shows, and distribute Grupo's film library, reported the Los Angeles Times.

Newspaper wrap-up: Buffett increases stake in BNI originally appeared on BloggingStocks on Tue, 09 Oct 2007 09:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Sprint Nextel Corporation's (NYSE: S) investors are unhappy, and led by the activist investor Ralph Whitworth, are voicing their displeasure with chairman and CEO Gary Forsee and the company's board, reported the Wall Street Journal.
• Merrill Lynch and Company (NYSE: MER) has fired several top executives as a result of the fallout from the credit crunch, The Financial Times reported.

• The Associated Press reported that members of the United Automobile Workers union at two General Motors Corporation (NYSE: GM) locals have approved the union's tentative contract agreement with GM, local union officials said Wednesday.
• Countrywide Financial Corporation (NYSE: CFC) has been ordered by a Delaware court to provide confidential information about its stock-granting practices to a Louisiana-based police pension fund that has invested in Countrywide, reported the Los Angeles Times.

• According to the Register, Alvarion Ltd (NASDAQ: ALVR) and Redline Performance Products (NASDAQ: REDL) are considered the most likely WiMAX companies to be acquired by Cisco Systems (NASDAQ: CSCO), but Airspan Networks (NASDAQ: AIRN), Aperto, and Navini have also been mentioned as possible acquisitions for the Internet networking giant.
• CNet.com reported that Yahoo Inc (NASDAQ: YHOO) is upgrading its e-mail system starting today with technology designed to block phishing, spam, and other fraudulent e-mails that look like they come from eBay (NASDAQ: EBAY) and PayPal, but actually don't.

Newspaper wrap-up: Activist investor displeased with Sprint originally appeared on BloggingStocks on Thu, 04 Oct 2007 09:11:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Singapore Airlines deal to buy 15.7% of China Eastern Airlines (NYSE: CEA), along with their parent Temasek Holding's 8.3% share, may be in jeopardy as Cathay Pacific Airways is said to also be interested in China Eastern, reported the Wall Street Journal.

• As a part of its annual report to be released this week, BHP Billiton Limited (NYSE: BHP) is expected to announce that it has uncovered potentially the largest gold reserves in the world at its South Australian Olympic Dam mine, reported the Herald Sun.
• According to the Washington Post, citing congressional investigators, the FBI is investigating technology company Unisys Corporation (NYSE: UIS) after it allegedly failed to detect "cyber break-ins traced to a Chinese-language Web site and then tried to cover up its deficiencies."
• The Telegraph reported that British bank Barclays (NYSE: BCS) is reportedly preparing to sell FirstPlus, one of its subprime consumer loan units, at a loss. Barclays is expected to obtain a price lower than GBP4.5B, the book value of the unit's loan portfolio.
• Microsoft Corporation (NASDAQ: MSFT) will tomorrow release its 'Halo 3' video game and the company expects over $150M in sales in the first 24 hours of its release, and a profit margin that could reach 90%, reported the Los Angeles Times.
• Housing slump or not, Home Depot Inc (NYSE: HD) CEO Frank Blake says there will be no large jobs cuts or store closings, reported the Associated Press.

Newspaper wrap-up: FBI investigating Unisys originally appeared on BloggingStocks on Mon, 24 Sep 2007 09:20:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Barron's Online's (subscription required) "Weekday Trader" is inclined to take profits in the disk-drive market while others are popping the champagne; specifically in Western Digital Corporation (NYSE: WDC), which Barron's wrote about positively four months ago and has appreciated 29.6%.
• Emerging markets are outperforming their U.S. and European counterparts this year, but investing in some countries -- including Turkey and Hungary -- is still risky, according to the "Heard on the Street" column in today's Wall Street Journal (subscription required).
• The Financial Times (subscription required) reported that Russian oil company Lukoil Holding (OTC: LUKOY), which is 20% owned by ConocoPhillips (NYSE: COP), is planning a $9B European spending spree.

• The Los Angeles Times reported that Washington Mutual Inc (NYSE: WM), the largest U.S. savings and loan bank, will close two mortgage divisions, resulting in about 1,000 job cuts.
• Spanish telecommunications company Telefonica SA (NYSE: TEF) said it is in talks with Apple Inc (NASDAQ: AAPL) concerning the right to sell the company's new phone, the iPhone, in Spain, next summer, Telecom Paper (subscription required) reported.

• A rumored partnership between Apple and Volkswagen AG (OTC: VLKAY) to develop an "iCar" with iPod connectivity could benefit both companies but is unlikely to yield an actual automobile for three or four years, according to market intelligence firm iSuppli Corp., reported AppleInsider.com.

Newspaper wrap-up: Lukoil planning a $9B spending spree originally appeared on BloggingStocks on Thu, 13 Sep 2007 09:08:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Barron's Online's (subscription required) "Inside Scoop" column reported that American Express Company (NYSE: AXP) Director Jan Leschly spent $2M on 32,000 shares -- the largest purchase at American Express in four years.
• Electronic Arts Inc (NASDAQ: ERTS) and Hasbro Inc (NYSE: HAS) have joined forces to create electronic versions of popular board games such as Monopoly and Scrabble, according to the Wall Street Journal (subscription required).
  
• Another former Ford Motor Company (NYSE: F) executive, Sir Nick Scheele, has joined the bidding war for the company's Jaguar and Land Rover divisions, reported the Financial Times (subscription required).

• Lions Gate Entertainment Corp (NYSE: LGF) is in final negotiations to acquire production and foreign sales company Mandate Pictures for more than $40M, reported the Los Angeles Times.
• British retail chain WH Smith is among several companies seeking to buy the U.K. operations of troubled bookseller Borders Group Inc (NYSE: BGP) , reported the Telegraph.
• From BusinessWeek's "Inside Wall Street" section:
  
• People are buying Marshall & Ilsley Corporation (NYSE: MI) because it is a bargain when you consider that Marshall is spinning off to shareholders its traditional banking and processing business in Q4.
  
• One safe and steady stock in these volatile markets may be Iron Mountain Inc (NYSE: IRM), the world's largest provider of information storage and protection, whose business has been rock-solid and whose stock has kicked up despite the market's wild swings.
  
• Shinhan Financial Group (NYSE: SHG), which has very solid credit metrics and top-quality loan portfolios, is attracting positive attention.

Newspaper wrap-up: Lions Gate close to acquiring Mandate Pictures originally appeared on BloggingStocks on Fri, 10 Aug 2007 09:15:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Rupert Murdoch's $5B, $60 a share offer for Dow Jones & Company (NYSE: DJ) appeared to be closer to a final deal as Dow Jones was negotiating with News Corporation (NYSE: NWS) to pay advisory fees for the Bancrofts, the majority stock holders, in exchange for some of the holdout members to back the deal, according to the Wall Street Journal.
• Barron's Online's "Inside Scoop" column reported that so far this year, five top BlackRock Inc (NYSE: BLK) executives grossed more than $82.4M by selling 486.5K shares on the open market at per-share prices ranging from $147.30 to $179.93, according to Thomson Financial data.

• Mortgage woes continued to deepen yesterday, reported the New York Times, which noted that the New York Stock Exchange elected not to allow trading yesterday on the shares of American Home Mortgage Investment Corp (NYSE: AHM), after the company reported that it would suspend its dividend and faced "significant" margin calls from banks.
• The New York Times reported that AT&T Inc (NYSE: T) has made a deal with online music retailer EMusic that will allow people to buy songs from independent labels through their cell phones.
• The Los Angeles Times reported that Toyota Motor Corporation (NYSE: TM) will introduce a new "standard" version of its Prius gas-electric hybrid for the 2008 with a base price of $20,950, 5.5% less than the lowest cost 2007 model.

Newspaper wrap-up 7-31-07: Dow Jones deal almost done? originally appeared on BloggingStocks on Tue, 31 Jul 2007 09:15:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Higher interest rate are making commercial real estate deal makers think twice about deals, according to the Wall Street Journal's "Heard on the Street," sending shares of companies like Archstone-Smith Trust (NYSE: ASN) down from $64 to $60.75 a share.
• The Financial Times reported that U.S. senators have proposed new laws that would impose higher taxes on private equity firms that list their shares on stock exchanges, a move that could be a blow to private-equity firm Blackstone Group, which is seeking to list its shares.
• The U.S. and U.K. are working on a treaty that would allow Britain to buy American weapons without obtaining export licenses, the Financial Times reported; any deal on the issue could face opposition in the U.S. Congress, although the British believe eliminating the need for the licenses would expedite the arms purchasing process.

• Turnaround candidate Eastman Kodak Company (NYSE: EK) may be ready to shine, BusinessWeek's "Inside Wall Street" column reported, and now may be a good time to evaluate a potential EK play, according to investment advisor Gregory MacArthur.
• Gateway Inc (NYSE: GTW) is selling products in China for the first time in a pilot program with Digital China Holdings Ltd, the LA Times reported.
• According to The Nation, The Dow Chemical Company (NYSE: DOW) is planning to ask its board of directors later this year for approval to invest in five petrochemical projects in Thailand.
• Cementos Portland Valderribas, a unit of Fomento de Construcciones y Contractas is planning a bid for Texas Industries Inc (NYSE: TXI), the Expansion reports, citing people close to the situation.

Newspaper wrap-up 6-15-07: Gateway selling products in China originally appeared on BloggingStocks on Fri, 15 Jun 2007 09:15:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• William Ackman's Pershing Square Capital Management, whose firms holds about 15% of Ceridian Corporation (NYSE: CEN), doesn't like the proposed $5.3B sale of the company to Thomas H. Lee Partners and Fidelity National Financial Inc (NYSE: FNF), and says he's going to find higher bidders, according to the Wall Street Journal.
• The Financial Times reported that British bank Barclays PLC (NYSE: BCS) has drawn up plans to sweeten its $86B all-share offer for Dutch bank ABN Amro Holdings (NYSE: ABN), by substituting cash for some of the shares it is currently offering for ABN.
• Beginning today, Apple Inc (NASDAQ: AAPL) is embedding its iTunes internet music download service in the British and Irish social networking site Bebo, reported the Financial Times.

• The New York Post has learned that a private-equity firm owned by the Dubai government is close to buying Barneys New York from the Jones Apparel Group (NYSE: JNY).
• The New York Times reported that the Wall Street Journal is set to "shake up its newsroom" by reassigning and replacing several top editors.
• Golf equipment maker Callaway Golf Company (NYSE: ELY) is suing Fortune Brands Inc.'s (NYSE: FO) Acushnet Co, for allegedly violating five Callaway patents for golf clubs, reported the Los Angeles Times.

Newspaper wrap-up 6-13-07: Apple embeds iTunes in Bebo originally appeared on BloggingStocks on Wed, 13 Jun 2007 09:15:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• According to Barron's Online's (subscription required) "Weekday Trader" column, Amgen Inc. (NASDAQ: AMGN) has gone from a growth play to a value play, and may be a bargain after a recent pullback.
• The Wall Street Journal (subscription required) reported that although the Dolan family finally convinced its board to take its $10.6B offer to take Cablevision Systems Corporation (NYSE: CVC) private, hurdles remain, as some investors aren't going along with it.
• Texas Instruments Inc. (NYSE: TXN) plans to spend about $1B over the next 10 years to expand its chip assembly and test operations in the Philippines, reported the Wall Street Journal.

• The New York Post reported that Jones Apparel Group Inc (NYSE: JNY) said yesterday it would close or sell some of its mid-price lines by the end of the year in order to reduce its exposure to department stores.
• A New York Post exclusive reported that Ion Media Networks Inc (NYSE: ION) looks close to approving a takeover deal with General Electric Company's (NYSE: GE) NBC and Citadel, despite shareholder opposition and a rival bid from Echostar Communications Corporation (NASDAQ: DISH).
• Despite the fact that the board of Dow Jones and Company (NYSE: DJ) twice said it will not take News Corp.'s (NYSE: NWS) $5B offer from Rupert Murdoch, a number of analysts say that it'll either be Murdoch or another competitor who buys the owner of the Wall Street Journal, reported the Los Angeles Times.
• According to sources close to the decision, Peter Sutherland will stay with BP plc (NYSE: BP) as chairman into 2009 to "help stabilize" the company following Lord Browne's departure, reported the Telegraph.

Newspaper wrap-up 5-3-07: Texas Instruments to expand to the Phillippines originally appeared on BloggingStocks on Thu, 03 May 2007 09:45:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Barron's Online's (subscription required) "Weekday Trader" wrote that there is currently little to get revved up about with Harley Davidson Inc (NYSE: HOG), as its fundamentals have deteriorated, leaving little upside for the stock over the next year, according to Citigroup Analyst Greg Badishkanian.
• The Wall Street Journal (subscription required) reported that Bristol-Myers Squibb Company (NYSE: BMY) will name James Cornelius, who has been interim CEO since last September, as the permanent CEO of the company.
• Comcast Corp (NASDAQ: CMCSA) is pushing into Web TV, a space currently being dominated by Google Inc's (NASDAQ: GOOG) YouTube, reported the Wall Street Journal.

• According to the Detroit Free Press, Chrysler Group suitors must submit new bids next week to make the cut and continue talks with DaimlerChrsyler AG (NYSE: DCX); one or two "preferred bidders" are expected to emerge.
• The L.A. Times reported that employees of Fremont General Corp (NYSE: FMT) are suing over losses on company stock in their retirement plans which they say should have been foreseen and prevented.

Newspaper wrap-up 4-26-07: Bristol-Myers makes Cornelius permanent CEO originally appeared on BloggingStocks on Thu, 26 Apr 2007 09:15:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal (subscription required) reported that E.On AG (NYSE: EON), the German utility, today raised its takeover offer for Spain's Endesa (ELE) to EUR40 a share, valuing the utility at about EUR42.36B.
• Also in the Wall Street Journal, Citigroup Inc (NYSE: C) is expected to cut 15,000 jobs under its restructuring plan.
• According to the Financial Times (subscription required), Semiconductor Manufacturing International Corporation (NYSE: SMI) is seeking a strategic investor and has named Morgan Stanley (NYSE: MS) and Deutsche Bank AG (NYSE: DB) to assist in the process.
• The Financial Times also reported that Saudi Basic is preparing a bid for General Electrics Company (NYSE: GE) GE Plastics division, that could be worth up to $12B.

• Blackberry maker Research in Motion (NASDAQ: RIMM) is getting a line of mobile games from Gameloft, a leading cell phone games maker, reported the New York Times.
• The Los Angeles Times reported that Tribune Company (NYSE: TRB) is said to be favoring Sam Zell's $33 per share offer for the company, according to a person familiar with the talks.
• The Sunday Telegraph reported that Microsoft Corporation (NASDAQ: MSFT) is preparing to launch a range of audio and video phones.

• According to AppleInsider.com, Jeff Hansen, Apple Inc's (NASDAQ: AAPL) Senior Director of Channel Sales and Distribution, told colleagues in a company e-mail that he plans to retire from his post effective March 31st.
• According to ChinaTechNews.com, China Unicom Limited (NYSE: CHU) will reportedly sell is CDMA business for RMB70 billion to China Telecom Corporation Limited (NYSE: CHA), but China Telecom reportedly wants the price cut by RM35 billion.

Newspaper wrap-up 3-26-07: Massive job cut expected at Citigroup originally appeared on BloggingStocks on Mon, 26 Mar 2007 09:15:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that the expiration of Roche Holding's (OTC: RHHBY) Tamiflu stockpiles poses a dilemma for some poor Asian countries of whether to spend millions and restock with the drug.
• The Financial Times wrote that China has launched its first navigation satellite.

• The Associated Press reported that Michael Dell outlined corporate changes in a company wide email, and said he will "quash" bonuses for 2006, reduce managers, would not hire a new COO, push for faster product development and expand into new businesses at Dell Inc (NASDAQ: DELL).
• The New York Times reported that Simon Property Group is expected to bid $1.56B for Mills Corp (NYSE: MLS).
• The Los Angeles Times reported that General Electric Company's (NYSE: GE) NBC Universal will name Jeff Zucker as its new CEO this week.
• According to the Detroit Free Press, DaimlerChrysler AG's (NYSE: DCX) Chrysler Group may cut up to 10,000 jobs next week.

Newspaper wrap-up 2-5-07: Michael Dell fed up at Dell Inc. originally appeared on BloggingStocks on Mon, 05 Feb 2007 09:20:00 EST. Please see our terms for use of feeds.

The Tribune Co. (NYSE:TRB) soap opera is reaching yet another plot twist.

Bids for the media conglomerate are due later this week, according to the New York Times. What struck me most about the article, though, was the despair evident among the reporters and editors of the Los Angeles Times, which billionaires Eli Broad and Ronald Burkle, along with media mogul David Geffen, are reportedly interested in buying.

"At The Times, several reporters have said privately that they prefer the idea of Mr. Geffen as the ultimate owner but that Mr. Broad and Mr. Burkle would most likely be preferable to a buyout firm that might cut costs further," the story said. 'Still, reporters and editors are generally nervous about any new buyer, even billionaires who say they want to maintain high quality."

Employees at the Los Angeles Times shouldn't be nervous about their future, they should be terrified. Even by the standards of major metropolitan papers, the Times is in bad shape. The paper's daily circulation declined 8% during the last period reported by the Audit Bureau of Circulations, which was higher than the drop off seen at other major dailes, including the Boston Globe, New York Times and Washington Post.

Whether Broad and Burkle will succeed if they decide to do a joint bid is anybody's guess. Other bidders are probably put off by the many headaches they would inherit from Tribune, including the Los Angeles Times. It will be interesting to see how much competition emerges or if the billionaires can buy these assets on the cheap.

Tribune buyout saga drags on originally appeared on BloggingStocks on Tue, 16 Jan 2007 16:00:00 EST. Please see our terms for use of feeds.

I just heard that Dean Baquet, the editor of the Los Angeles Times, has been pushed out by his Chicago-based overlords because he refused to oversee any more staff cuts.

Well, all of us members of the Fourth Estate, past and present, saw this coming. It's just another ill tiding for the newspaper industry.

The Tribune Company (NYSE:TRB), owners of the Chicago Tribune (and lots of other media outlets), own the Los Angeles Times. It's been relentless in its pursuit of profits, slashing staff and other resources. It's slowly starving its brand by trying to wring every last penny of profit out of its business. And when was the newspaper business ever a money-making operation?

Yes, the newspaper industry is dying. Yes, more people get their news now from the Internet or TV. Yes, advertising revenue has tanked, again thanks to the Internet. I'll even hazard to say there won't be newspapers as we know them in 20 years time. But it ain't dead yet. There are still millions of people who get a newspaper every day, for whatever reason. And those people want a good product. The Los Angeles Times was a good product. A great brand.

Continue reading Chicago to LA Times: drop dead

Chicago to LA Times: drop dead originally appeared on BloggingStocks on Tue, 07 Nov 2006 19:25:00 EST. Please see our terms for use of feeds.

My hometown newspaper is the LA Times, which is owned by Tribune. The Tribune has other traditional media assets like the Chicago Tribune.

Well, I haven't subscribed to the LA Times in years. Like more and more people, I get my news from the Internet.

So, who would want to buy a company like Tribune Co. (NYSE:TRB)? There are certainly buyers. The problem is, though, that they want a dirt cheap price. Tribune has been on the auction block and simply put, the sale has been withdrawn because the bids have been too low.

As a result, it looks like Tribune may sell off individual assets. Perhaps, this could result in an overall higher value for the company?

After all, billionaires like David Geffen and Ronald Burkle may just want to purchase the LA Times, whereas Gannett may be interested in other properties. Also, the Tribune owns the Cubs, which would likely fetch a high price. There are also interesting Net properties, such as CareerBuilder (which Tribune has an equity interest in).

The fact remains, however, that circulation in the newspaper business continues to erode as dot-coms like Craigslist eat away at high-margin segments.

Maybe, then, Tribune can go private?

Whatever option is taken, it does look like shareholders will not get much of a premium. If anything, the big winner may be the IRS, which could reap a huge windfall in tax dollars if there is a liquidity event.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.

Tribune's break-up originally appeared on BloggingStocks on Thu, 02 Nov 2006 13:46:00 EST. Please see our terms for use of feeds.