As a rabid sports fan and a financial blogger, I couldn't let this news slide untouched across my desk. It appears that the Chicago Cubs are about to be sold to the Ricketts family.

The Tribune Company has been trying to sell the Cubs for more than two years in order to reduce the company's debt, and the Ricketts family has stepped to the plate. Back in January the Ricketts family agreed to buy the team and other assets for $900 million, and the recent terms are reportedly very similar to that.

Continue reading Chicago Cubs nearing sale to the Ricketts family

Chicago Cubs nearing sale to the Ricketts family originally appeared on BloggingStocks on Tue, 07 Jul 2009 09:00:00 EST. Please see our terms for use of feeds.

Chicago Cubs find a buyer originally appeared on BloggingStocks on Fri, 23 Jan 2009 13:25:00 EST. Please see our terms for use of feeds.

This post is part of our feature on Money Losers of 2008. See all 20.

When Sam Zell acquired the Tribune Co. in April 2007 for $8.2 billion in cash, pundits speculated about whether the "grave dancer" who had made billions in distressed real estate had bitten off more than he could chew. The overwhelming evidence indicates that is exactly what happened.

Even by the very low standards of the newspaper industry, Tribune was a disaster. Many of its papers were big-city dailies that have been hit especially hard from the move by advertisers online. The Los Angles Times, the flagship paper of the old Times Mirror chain, experienced both the biggest declines in circulation and in newsroom employees, according to a New York Times report from October. During the third quarter, operating expenses in the publishing business rose 6% to $640 million while operating revenue plunged 13% to $654 million. It's no surprise that there have been boatloads of layoffs in the division.

The broadcasting business has also been hurt by soft advertising at the company's 23 television stations. Mark Cuban's efforts to buy the company's Chicago Cubs have reportedly been held up because the the loud-mouth billionaire's problems with the SEC. The fact that many businesses are finding it impossible to get a line of credit does not help either.

Continue reading Money losers of 2008: Sam Zell's year from hell

Money losers of 2008: Sam Zell's year from hell originally appeared on BloggingStocks on Fri, 26 Dec 2008 16:30:00 EST. Please see our terms for use of feeds.

It definitely looks like M&A activity will decline in 2009. What's more, it appears that private financings and public offerings will continue to remain lackluster.

This is bad news for investment banks. However, some of these operators are finding ways to maneuver around by focusing on restructuring work.

Perhaps one of the biggest beneficiaries is Lazard Ltd (NYSE: LAZ).

In fact, this week the firm snagged Timothy R. Pohl, the co-head of restructuring practice at Skadden, Arps, Slate, Meagher & Flom.

Pohl will certainly be busy as Lazard is currently working on the bankruptcies of Lehman Brothers and VeraSun.

This week, Lazard also got several new plumb assignments. The firm is advising Nortel Networks (NYSE: NT) on restructuring options, and other new clients include Tribune and even the United Auto Workers.

Of course, with the protracted credit crunch and the declining global economy, we'll likely see more leveraged companies hitting the wall, providing much more business for Lazard.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a valuation website.

Lazard: Feasting on the bankruptcy boom originally appeared on BloggingStocks on Fri, 12 Dec 2008 12:05:00 EST. Please see our terms for use of feeds.

I guess I'm a bit old school, but I like the idea of walking to my mailbox to get my newspaper. I even like the feel of the ink that bleeds onto my fingers, but I recognize that I'm a bit unique.

Too unique, actually, and that is a problem for the newspaper business.

Yesterday, we learned that the old Tribune Company, privately owned by billionaire Sam Zell, is filing for protection under bankruptcy law. The company is drowning in a sea of debt and trying frantically to sell assets in order to raise cash.

It is obvious to management that subscriptions and advertising revenue will not be enough to pay off debt. The company will need to work with creditors on delaying principle and interest payments while it raises cash.

With the advent of the Internet and explosion of cable news networks, little old print media is going the way of the buggy whip.

Across the newspaper business, circulations have been falling for many moons and advertising dollars are taking their business elsewhere. Losses have been piling up, making it difficult to pay down debt used to consolidate the industry.

It's a complete mess.

Continue reading Tribune files for bankruptcy, could New York Times be next?

Tribune files for bankruptcy, could New York Times be next? originally appeared on BloggingStocks on Tue, 09 Dec 2008 17:50:00 EST. Please see our terms for use of feeds.

Continue reading Illinois governor's corruption charges touch Obama, Tribune

Illinois governor's corruption charges touch Obama, Tribune originally appeared on BloggingStocks on Tue, 09 Dec 2008 11:40:00 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.

From TheStreet.com Network

• McClatchy to Cut 10% of Staff
• They Just Don't Get McClatchy!

Continue reading Cramer on BloggingStocks: Yesterday's technology, yesterday's news

Cramer on BloggingStocks: Yesterday's technology, yesterday's news originally appeared on BloggingStocks on Wed, 18 Jun 2008 09:22:00 EST. Please see our terms for use of feeds.

Wall Street Journal special committee is a bunch of saps originally appeared on BloggingStocks on Wed, 30 Apr 2008 16:14:00 EST. Please see our terms for use of feeds.

Will Rupert Murdoch expand his print media holdings? originally appeared on BloggingStocks on Fri, 21 Mar 2008 16:10:00 EST. Please see our terms for use of feeds.

Several large publishers will set up a joint ad sales operation in the hopes of getting more revenue for their online businesses. According to The Wall Street Journal, "Gannett (NYSE: GCI)., Hearst Corp., the New York Times NYSE: NYT). and Tribune Co. are setting up the network as a stand-alone company called quadrantOne."

The new operation will have access to funding from the four companies and will cover 120 newspaper websites with a combined 50 million unique users. The new firm will not sell ads in the New York Times and USA Today which already have large online sales forces.

The venture will likely be a failure. By holding out the two most prized newspaper websites and selling smaller papers to advertisers the quadrantOne is likely to do no better than the unit Yahoo! (NASDAQ:YHOO) has set-up to sell newspaper ads. While newspaper websites are attracting more readers as people moves away from print products, ad agencies can already buy inventory from these properties with ease.

The new company may offer "one stop shopping" for online newspaper ad inventory, but it is not inventory that advertisers really want.

Douglas A.. McIntyre is an editor at 247wallst.com.

Newspapers try to strike back online originally appeared on BloggingStocks on Fri, 15 Feb 2008 08:53:00 EST. Please see our terms for use of feeds.

Just for fun, the newspaper industry that is facing excruciating pressure as news seekers and advertisers flock to the internet, now has another negative catalyst to deal with. The housing slowdown and sharp drop in sales is causing a significant drop in newspaper advertising for real estate, a significant chunk of many small papers' overall revenue.

The Tribune Company saw a 40% year over year decline in its real estate ad sales for November. Gannett (NYSE: GCI) is also looking at a 27% drop.

This short-term revenue drop that's a result of macroeconomic factors could extend into the long-term. When the housing market does rebound, will people go back to newspapers? Or will have the internet continue to make inroads, hastening the decline of newspapers into oblivion.

As bleak as the outlook for the industry looks, several highly-respected investors have made large bets on it. Sam Zell recently acquired Tribune, and Warren Buffett has been a long-term investor in the sector.

For contrarian investors, the industry may be worth a look.

Newspapers feeling the subprime sting as housing ads dry up originally appeared on BloggingStocks on Fri, 28 Dec 2007 14:05:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that in a list released last night by the FCC, Google Inc (NASDAQ: GOOG), Cablevision Systems Corporation (NYSE: CVC) and other "nontraditional" players are set to compete against more traditional wireless companies like Qualcomm Incorporated (NASDAQ: QCOM) and MetroPCS Communications Inc (NYSE: PCS) in the federal government's spectrum auction next month.

• Banks that include Merrill Lynch & Co Inc (NYSE: MER) and The Bear Stearns Companies Inc (NYSE: BSC) are reportedly in talks to help bail out struggling bond insurer ACA Capital Holdings, which lost $1B in the most recent quarter, according to two people briefed on the situation and reported by the New York Times; ACA Capital has guaranteed $26B in mortgage securities.
• Executives at Tribune Company (NYSE: TRB) were faced with last-minute questioning from bankers that were reluctant to fund the final portion of the $8.2B deal to take the company private, according to sources close to the company, the Chicago Tribune reported.

• Barron's Online's "Inside Scoop" reported that analysts are not convinced that the deal with Citadel is enough to save E*Trade Financial Corporation (NASDAQ: ETFC), as it does not eliminate E*Trade's $12.4B second-lien mortgage exposure, and the company could potentially face further customer attrition, which many think will continue to pressure the shares.

Newspaper wrap-up: Google, Cablevision to bid for FCC spectrum originally appeared on BloggingStocks on Wed, 19 Dec 2007 08:15:00 EST. Please see our terms for use of feeds.

Tribune (TRB) higher on expected FCC changes originally appeared on BloggingStocks on Tue, 18 Dec 2007 12:33:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal's "Deal Journal" reported that Sam Zell's planned buyout of Tribune Company (NYSE: TRB) is contingent on the receipt of a solvency opinion, and that this is the first time they have ever seen a deal dependant on this.
• The WSJ's "Heard on the Street" reported that Countrywide Financial Corporation (NYSE: CFC) may not be out of the woods yet. Despite executives promising a return to profitability, there is still a risk the company may eventually seek bankruptcy protection or "resort to huge sales" of new stock.
• U.S. private equity group JC Flowers "is understood" to have walked away from the auction for troubled bank Northern Rock, the Financial Times reported.
• Rupert Murdoch is shaking up the management of News Corp (NYSE: NWS.A), the Financial Times reported, giving his son, James Murdoch, control over the company's European and Asian operations, and appointing two trusted executives to lead Dow Jones & Company Inc (NYSE: DJ) and the Wall Street Journal.

• Barron's Online's "Weekly Trader" said AutoNation Inc (NYSE: AN) looks attractive now, despite hovering near a multi-year low. The company has also been on a slow but steady quest to diversify away from unpopular domestic brands by snapping up luxury and import dealerships.

Newspaper wrap-up: Tribune buyout contingent on solvency opinion originally appeared on BloggingStocks on Fri, 07 Dec 2007 08:05:00 EST. Please see our terms for use of feeds.

Tribune (NYSE: TRB) is recently up $32.08.

CNBC's David Faber says the TRB deal could close very soon. TRB has expected its $34 per share sale to Sam Zell, private equity, debt holders and employees to be closed by year-end. The FCC granted temporary waivers to complete the deal. TRB announced this morning it intends to use cash on hand to reduce total amount of bridge loan to $1.6 billion from $2.1 billion. TRB January option implied volatility of 33 is below a level of 79 from Dec 6th and below its 26-week average of 38 according to Track Data, suggesting the close of the $34 deal is near.

Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option update: Tribune (TRB) volatility collapses; Zell's buyout could close soon originally appeared on BloggingStocks on Thu, 06 Dec 2007 12:12:00 EST. Please see our terms for use of feeds.

Tribune (NYSE: TRB) is recently down 55 cents to $29.95. TRB expects its $34-per-share sale to Sam Zell, private equity, debt holders and employees to be closed by end of 2007. The FCC granted temporary waivers to complete the deal on Dec. 30. TRB call option volume of 2,688 contracts compares to put volume of 15,775 contracts. TRB December option implied volatility of 80 is above its 26-week average of 36 according to Track Data, suggesting larger price risks.

LDK Solar (NYSE: LDK) is a manufacturer of multicrystalline solar wafers. Dow Jones reported LDK will tap $700 million in long-term debt and credit lines, as well as about $100 million in customer prepayments. LDK auditing report on the investigation of allegations of inaccurate inventory is expected in early December. LDK has said the company has correctly reported its inventories. LDK is expected to report Q3 EPS in mid-December. LDK December option implied volatility is at 165 and March is at 133; above its 21-week average of 98, according to Track Data, suggesting larger risk.

Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option update 12-4-07: Tribune put volume spikes as buyout nears close originally appeared on BloggingStocks on Tue, 04 Dec 2007 16:10:00 EST. Please see our terms for use of feeds.

• Baird upgraded shares of Apollo Group (NASDAQ: APOL) to Outperform from Neutral based on positive enrollment and revenue trends, margin improvement, and a strategic international announcement.
  
• CIBC upped its rating on Zoran Corporation (NASDAQ: ZRAN) to Sector Outperformer from Sector Performer following strong Q3 results and guidance.
  
• Jefferies upgraded shares of AmSurg Corp (NASDAQ: AMSG) to Buy from Hold as they believe the new CEO is preparing to drive earnings growth through acquisitions.
  
• ThinkEquity continues to expect Apple (NASDAQ: AAPL) to outpace the industry in growth. The firm upgraded shares to Buy from Accumulate.
  
• Barrington upgraded shares of Tribune Company (NYSE: TRB) to Market Perform from Underperform on valuation, as they believe the current price significantly discounts the risks of the going private transaction getting done.

• Citigroup upgraded Jarden Corporation (NYSE: JAH) and Teradyne (NYSE: TER) to Buy from Hold.
  
• Lehman upgraded SunPower Corporation (NASDAQ: SPWR) to Overweight from Equal Weight.
  
• HSBC upgraded ArcelorMittal (NYSE: MT) to Overweight from Underweight.
  
• WestLB raised Roche Holding (OTC: RHHBY) to Add from Hold.

Analyst upgrades: APOL, ZRAN, AMSG, AAPL and TRB originally appeared on BloggingStocks on Tue, 23 Oct 2007 11:20:00 EST. Please see our terms for use of feeds.

It is getting very hard to believe that Sam Zell can close his deal to buy-out the public shareholders at The Tribune Company (NYSE: TRB). Shareholders approved the $34 a share deal on Tuesday, but the stock stands at $28.98.

This morning, the Tribune announced that revenue for July fell another 5.9% to $467 million. Advertising revenue tumbled 10.3% to $247 and classified advertising revenues decreased 18.2%. At least sales at the company's TV and radio operations were flat.

According to The Motley Fool "On Monday, in part because of the expected continuing slide in a number of the company's properties, Standard & Poor's took the company's debt to a B + rating from BBB-, casting it smack-dab into the world of "junk." And as if that weren't enough, S&P has indicated that it'll further knock the rating down to B after the deal is completed." The company's debt burden will be $8.2 billion.

A quick look at the Tribune's latest 10-Q shows operating profit of just under $196 million. Perhaps on an annual run rate that could be $800 million a year. Of course, this would depend on revenue staying steady, and that is not going to happen.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Tribune (TRB) numbers get worse as Zell tries to close originally appeared on BloggingStocks on Fri, 24 Aug 2007 10:10:00 EST. Please see our terms for use of feeds.

Over the course of last night, bankers and private equity interests battled over the funding for buying Home Depot's (NYSE: HD) wholesale supply business. JP Morgan (NYSE: JPM), Lehman (NYSE: LEH), and Merrill Lynch (NYSE: MER) have come close to walking away from the buy-out lead by Bain Capital, Carlyle Group and Clayton, Dubilier & Rice. The price for the unit may be cut by as much as $1.2 billion from its original $10.3 billion price.

The banks are concerned about the risky debt and the fact that the business is being hurt by the falling housing market, according to (subscription required) a story in The Wall Street Journal.

The banks have made billions of dollars from lending money to the larger private equity operators. When business was good the door to the vault almost always open. Now that it is clear that some of the buy-out loans will sour, the same lenders want to save their own skins.

Is there a solution to this, or will many of the largest private equity deals fall apart? One obvious answer is that private equity firms may have to put up more than the 10% or so that they normally like to contribute to these transactions. That would let them take on more of the risk and mitigate the problems for the banks. Another answer is that the price for deal like Home Depot and the Tribune (NYSE: TRB) will simply drop to adjust for risk, leaving the sellers holding the bag.

The most likely set of circumstances is that in more of these deals, the buyers will simply walk away. Current owners of these businesses will be left to make them work through cost cuts and supporting them financially until better times come around again.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Home Depot's (HD) troubled buyout originally appeared on BloggingStocks on Fri, 24 Aug 2007 07:00:00 EST. Please see our terms for use of feeds.