Tribune Draws Gannett Interest, But Media Firms Face Hurdles

TRIBUNE DRAWS GANNETT INTEREST, BUT FIRMS FACE HURDLES
[SOURCE: Wall Street Journal, AUTHOR: Sarah Ellison sarah.ellison@wsj.com and Dennis K. Berman]
Since Tribune Co. opened up to selling itself in pieces, the company has attracted an expanded array of potential bidders, including strategic buyers that are interested in part or all of the company. Last week, after putting in a preliminary bid for the entire company, Gannett Co. executives visited Tribune in Chicago to hear management's presentations. Gannett's bid makes it the first newspaper publisher to join the ranks of private-equity firms and wealthy individuals interested in all of Tribune. Even though Tribune has indicated it would entertain bids for individual assets, tax bills could make selling individual newspapers or TV stations prohibitively expensive. Another issue at hand for a buyer like Gannett would be Federal Communications Commission rules governing media concentration. A separate auction for radio giant Clear Channel Communications Corp., the nation's largest operator of radio stations, could affect the outcome of Tribune's process, given that some private-equity firms, such as Providence Equity Partners and Thomas H. Lee Partners, are involved in bidding for both properties. The outcome of the Clear Channel auction could force some private-equity firms to bow out of bidding for Tribune, which would force the remaining firms to form new alliances.
http://online.wsj.com/article/SB116337890205621164.html?mod=todays_us_page_one
(requires subscription)

* Dubious Mix: Rich Suitors, Ailing Newspapers
http://www.nytimes.com/2006/11/13/business/media/13carr.html
(requires registration)

* Bids Are Expected For Radio Giant
Two consortiums of private equity firms are expected to submit final bids today for radio giant Clear Channel. Offers are expected from a group that includes Providence Equity Partners, the Blackstone Group and Kohlberg Kravis Roberts & Company. Another bidder includes Bain Capital, Thomas H Lee partners and the Texas Pacific Group.
http://www.nytimes.com/2006/11/13/business/media/13clear.html
(requires registration)