By: E&P Staff The Tribune Co. is working to buff up the image of a company (and industry) hit by declining print advertising revenue and circulation.
According to the Chicago Tribune, its parent company is holding meetings this week with private equity firms that have expressed interest in the company.
Tribune also plans to hold tours of its printing facilities in Chicago.
One industry executive who is close to the firms interested in the company told the Chicago Tribune: "The problem is that private equity has to model an exit strategy five years out and they're having trouble seeing that. How much of the problem is cyclical and how much is structural? That's a gamble."
Though Tribune executives said they are willing to break-off pieces of the company, since initial bids were reportedly so low, the company could be drumming up interest in individual properties to prove to private equity firms the company is more valuable.
As E&P has
reported, several analysts think the company will be broken up. Merrill Lynch analyst Lauren Rich Fine wrote the company was worth $32 to $33 per share even after the news that Tribune was seeking out buyers for separate properties.
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