Burdened by debt after going private a year ago, Tribune Co. -- publisher of the Los Angeles Times, Chicago Tribune and 10 other dailies -- has sought bankruptcy protection in federal court. Tribune is partners with Gannett in employment website CareerBuilder and the Metromix chain of youth-focused entertainment sites.
The Wall Street Journal (paid subscription often required) has been leading coverage with its story. Other reports: The New York Times's DealBook blog, and the Tribune itself. Here's Tribune's statement.
Monday, December 08, 2008
13 comments:
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Jim, do not forget, to add the fact that the NYT, today, took a mortgage, out on the building that they have the paper in. Just to stay a float.
ReplyDeleteChiTrib editor just told me they're having a big staff meeting this afternoon to "figure out what this means."
ReplyDeleteHard to believe with all the problems there, they were focused on redesigns. You can't make this stuff up.
ReplyDeleteSo, financial folks, give me an idea of what this means for Gannett.
ReplyDeleteThis means Gannett will have to layoff more people so they can buy the remaing stakes of the Websites and become 100% owner
ReplyDeleteI'm no expert, but I don't see this affecting Gannett. Despite its ruthless nature, they are still making tons of money.
ReplyDeleteTribune was and is one of the worst-run media businesses in history. Look at the top newspapers they are destroying. They were some of the best in the country. Now, sadly, most are being laughed at.
Give me a media company more poorly run than Tribune, both pre-Zell and post-Zell?
Gannett owns a 51% stake in Tribune CareerBuilder. This past September Gannett purchased an additional 10%(bringing the total to 51%) for $135 million. I do not know how much the first 41% cost....but one thing is for sure. This is another example of Gannett attempting to buy additional revenue and its way out of bad debt. Tribune reported a $121.6 million 3rd quarter loss this year. Gannett just figured out the milk it bought is spoiled.
ReplyDeleteFor more, click on http://moorparkmedia.blogspot.com/2008/12/tribune-co-files-bankruptcy.html
ReplyDeleteYou all can blame Zell all you want, but there was nothing he or anyone else could do to save the Tribune Co. True, the debt didn't help, but the company would still have gone under had the Chandler family kept it.
ReplyDeleteThe NY Times Co. had to take out a mortgage on their building to make payroll. The Ochs/Sulzberger family has been in the newspaper business for ages and allegedly knows what it is doing.
The SF Chronicle is losing money with both hands. Is anyone here going to say the Hearst family doesn't know the business?
Major metropolitan newspapers will shortly be extinct and there is nothing anyone can do to stop it. Much as movable type put scriptoriums out of business 500 years ago, the internet will do the same to paper information distribution systems - newspapers.
Walter Abbott
It would be a smart move if Gannett owned 100%. The only jobs ad sales are on the internet and Monster.com is falling.
ReplyDeleteGannett still hasn't paid me my retirement since my layoff in August. Just get the run around every time I call! Watch them file bankruptcy and I will get squat! Can they get away without paying all of us retirement if they file?
ReplyDeleteDon't kid yourself. This has very real implications for Gannett. Right now the suits are praying they can keep GCI from suffering the same fate.
ReplyDeleteWow, from the NYT on the Tribune bankruptcy, note the following:
ReplyDelete"A note on an internal Tribune Company Web site said, “All ongoing severance payments, deferred compensation and other payments to former employees have been discontinued and will be the subject of later proceedings before the court.” That made it apparent that employees who recently were laid off or took buyouts would join the long list of unsecured creditors."
So everyone, pay attention. When you get your buyout money, pension payments, etc., cash the check soonest or you could be caught up in something like this...