Tribune May Retain Half of Cubs

With the election over, it's time to re-focus on baseball. Sam Zell's Tribune Company may end up holding 50% or more of the media company's storied Chicago Cubs baseball franchise as the credit crunch stalled sales talks. In recent weeks, an early plan to sell a 95% stake has fallen to about half as suitors' ability to buy the team and its landmark stadium on Chicago's North Side waned. On Thursday, bidders were preparing to receive a request to submit new purchase proposals with financing details. The shift in strategy is a result of the tight credit market and a heightening fear that few, if any bidders, would be able to complete a transaction once valued at more than $1 billion. Under the new scenario, the windfall to Tribune would be far less. But the likelihood of selling a smaller stake raises the question of whether Mr. Zell erred by not pushing for a quick sale after he took control of Tribune. Mr. Zell had said the sale of the Cubs, the stadium and a 25% stake in a regional sports network was a priority when he struck a deal to buy Tribune for $8.2 billion in April 2007. The Tribune acquisition saddled the TV and newspaper company with $13 billion of debt amid declining revenue at its eight major daily newspapers.