Tribune Spinoff Plan Raises Concerns for Papers
Posted: 12/23/2013 | By: Ravi Somaiya | New York Times
A plan by the Tribune Company to separate eight newspapers, including The Los Angeles Times and The Chicago Tribune, from its more profitable digital and television businesses could threaten their survival, staff members, industry analysts and a congressman said last week.
Under the proposal, outlined in a recent securities filing, the newspaper business will pay rent to its former parent company, as well as a dividend. Such moves, its critics say, will give the newspaper company less financial resources and operational flexibility at a difficult time for the industry.