L.A. Billionaires Broad and Burkle Submit Bid for Tribune

By: E&P Staff Two Los Angeles billionaires have reportedly placed a bid on the Tribune Co., according to the Los Angeles Times.

Eli Broad, a philanthropist, and Ron Burkle, head of the investment firm Yucaipa Companies, submitted a "competitive bid" for the Chicago-based company, an unnamed source told the Los Angeles Times' James Rainey.

Broad declined to comment to the paper and Burkle could not be reached.

Both Broad and Burkle have expressed interest in owning the Los Angeles Times over the past several months. Entertainment mogul David Geffen is still reportedly interested in the paper as well but has not submitted an offer.

The Los Angeles Times has gone through several abrupt changes over the last several months, including the firing of Publisher Jeffrey Johnson and yesterday's news that Editor Dean Baquet was forced out. Both stated they were unwilling to cut more jobs.

Under pressure from shareholders, Tribune was forced in September to consider strategic alternatives, including a sale of the company. At first, executives said they did not want to break it off in pieces but after reportedly receiving low bids from private equity firms, the company opened up the possibility of selling off individual assets.

Burkle is no stranger to bidding on newspapers. His Yucaipa Companies teamed up with the Newspaper Guild when Knight Ridder was up for sale -- the plan was to align with potential bidders. McClatchy acquired Knight Ridder and put 12 newspapers back on the block. Eleven of the 12 were union shops. Burkle and the guild mounted a failed attempt to buy the 12 papers.