Last updated: February 21, 2008 - 5:32am
BROAD-BURKLE BID FOR TRIBUNE LIKELY TO REMAIN IN PLAY
[SOURCE: Los Angeles Times, AUTHOR: Thomas S. Mulligan email@example.com]
The bid submitted for Tribune Co. by billionaires Eli Broad and Ron Burkle expires this afternoon, but people familiar with the auction say they expect the Chicago-based media company to withhold a response for now while encouraging the pair to stay involved. A major Tribune investor said last week that he found the Broad-Burkle bid to be attractive because it would involve an immediate $27-per-share cash dividend plus an infusion of $500 million in capital from the two entrepreneurs. Tribune, corporate parent of the Los Angeles Times, KTLA Channel 5, the Chicago Cubs baseball team and other newspapers and TV stations, also received bids last week from its biggest shareholder group, California's Chandler family, and from the New York-based private-equity firm Carlyle Group. The $4.7-billion Carlyle bid is only for Tribune's broadcast division and the Cubs [which many consider the jewel in Tribune's tainted crown]. Although the Chandlers did not spell out their plans in their letter, they are expected to later sell the newspapers, which include The Times, the Chicago Tribune, New York Newsday and eight other papers. Rupert Murdoch's News Corp. has thrown in with the Chandlers, agreeing to take a minority stake in their deal, according to a News Corp. insider who spoke on condition of anonymity because he had not been authorized to discuss the situation. Under the deal, News Corp. -- owner of the Fox TV network, cable's Fox News channel and the 20th Century Fox studio -- would get an operating agreement allowing it to cut costs by combining certain noneditorial operations of Newsday with those of its own New York Post.
NEWS CORP ENTERS BID BATTLE FOR TRIBUNE
[SOURCE: Financial Times, AUTHOR: Matthew Garrahan and Aline van Duyn]
Rupert Murdochâ€™s News Corp has joined the Chandler family in its bid for Tribune Company, with an eye to taking a stake in New Yorkâ€™s Newsday newspaper. Newsday, which is based in Long Island, is one of Tribuneâ€™s largest newspapers. Murdoch wants to combine back office and operational functions at Newsday with those of the New York Post, the News Corp tabloid that has made big circulation gains in recent years but continues to rack up losses. Murdoch would likely take a minority stake in a consortium owning the Tribuneâ€™s newspapers, rather than attempting to buy outright control of Newsday. Given News Corpâ€™s television and newspapers interests in the New York market, the company would be constrained by media ownership rules. Any deal for Newsday would also hinge on the success of the Chandler consortiumâ€™s bid for Tribune, although Murdochâ€™s interests identify him as a potential partner if future bidders emerge for parts of the Tribune group.
* News Corp. participates in Tribune bid
GEFFEN TURNS PAGE IN A MEDIA DREAM STORY
[SOURCE: Financial Times, AUTHOR: Matthew Garrahan]
David Geffenâ€™s new interest in the newspaper industry comes as a surprise, given the margin pressures the sector is facing amid the rising tide of competition from the Internet. Geffen, the founder of Geffen Records and a co-founder of DreamWorks SKG, the movie studio he started with Steven Spielberg and Jeffrey Katzenberg, wants to buy the Los Angeles Times. The newspaper is currently owned by Tribune Company, which also owns other papers, such as the Chicago Tribune, and is itself on the auction block. Rob Burkle and Eli Broad, two Southern California-based billionaires, have bid for Tribune, as has Carlyle, the private equity group, while the Chandler family, one of Tribuneâ€™s largest shareholders, has offered to buy the company and sell off the newspaper assets. With Tribuneâ€™s fate uncertain, Mr Geffen, worth an estimated $4.5bn according to Forbes magazine, is biding his time. One thing is clear though: having had a $2bn cash offer for the LA Times rejected by Tribune, he could yet play a key role in the newspaperâ€™s future.
- No Clear-Cut Path for Tribuneâ€™s Board
- Chandler Family Seeks Part of Tribune
- Zell Wins Tribune In Bid to Revive A Media Empire
- Chandlers Call for Breakup of Tribune
- Tribune Draws Three Offers, All Short of Original Hopes
- Two Billionaires Bid to Acquire Tribune
- Tribune Sale Update
- Cablevision not interested in Newsday
- Tribune Board Is Considering A Broad Overhaul
- Fate of Tribune May Rest With Television Business
- Tribune's Bid Deadline Nears With Few Suitors Signaling Keen Interest
- Murdoch Would Like JOA Between His 'NY Post' and Tribune's 'Newsday'
- Chandlers may bid for Tribune as last resort
- Zell's bid for Tribune said to be favored
- Deadline nears for new Tribune bids