Tribune CEO FitzSimons: We Won't Delay Stock Buyback

By: Jennifer Saba "So what's new with you?" joked Dennis FitzSimons, the Tribune Co.'s chairman, president, and CEO, during his first public appearance since the revelation of an internal boardroom fight over the company's strategy.

FitzSimons presented to analysts and investors during the Newspaper Association of America's Mid-Year Media Review in New York along with Don Grenesko, senior vice president of finance and administration. His two other executives who typically flank FitzSimons -- Scott Smith, president of Tribune Publishing and John Reardon, president of Tribune Broadcasting -- did not attend. They need to "stay focused on running the business," FitzSimons explained.

Tribune has been the talk of the industry ever since the company announced it planned to buy back 25% of its shares. Quickly following that move, it was revealed that Tribune's second largest shareholder, the Chandler Trusts, rebuffed the action, calling it "hasty and ill-informed" through a stinging letter filed with the Securities and Exchange Commission (SEC).

Given the circumstances, FitzSimons appeared relaxed and at times jovial as he addressed the audience this morning reconfirming that Tribune is committed to the share repurchase program and $200 million in cuts.

And yet, he didn't say much that hasn't been said before. Since the company is in the midst of a tender offer, it's in a quiet period so FitzSimons kept his remarks brief -- about 20 minutes total for the presentation. Audience members were not allowed to ask questions.

FitzSimons said Tribune is on track with the offer that is expected to close on June 26 and reiterated that Tribune went down this road because management believes that the stock price does not reflect the value of the company.

Tribune's chief said the fact the Chandlers did not support the buyback was "not so much about strategy" and that the board was unwilling to delay the tender offer because it "benefited all shareholders."

"We wouldn't do this if we didn't think we couldn't generate better financial results," FitzSimons said.

The company's top priority is revenue growth, said Grenesko right before noting that June was going to be a soft month for Tribune, with flat revenues. The New York Times Co. reported yesterday similar trends.

As expected, Tribune put the spotlight on the Internet and said the company planned to increase its stake in CareerBuilder after McClatchy's acquisition of Knight Ridder closes. CareerBuilder is owned by Knight Ridder, Tribune, and Gannett. Both Tribune and Gannett get first right of refusal over Knight Ridder's one-third share in the online career site.

Tribune forecasts that by 2010 online revenue will make up 12% to 15% of overall revenue. Year-to-date until May, interactive revenue grew 28% and the company expects to pull in $225 million in 2006 (representing roughly 6% of overall revenue).

"We're confident the recapitalization coupled with improved performance will create long term value for shareholders," FitzSimons concluded before one audience member defied the no question request.

"What do you know about Sammy Sosa?" he shouted to FitzSimons.

Tribune's CEO replied laughing: "That's the only comment I will make: [He's] comfortable in retirement."