Tribune Drama Continues: Here's Latest on Bids

By: E&P Staff It drew wide skepticism at first, but it seems the Gannett Co. may be serious about nabbing fellow giant Tribune Co.

Tribune announced Tuesday that it would continue the bidding process, saying it had received much interest from several parties, though nothing quite acceptable. Meanwhile, writing in the Chicago Tribune today, Michael Oneal notes the following:

"Gannett may see special interest in Tribune because of their joint ownership of CareerBuilder. If Gannett were to take over Tribune, its CareerBuilder stake would give Gannett 85 percent ownership of the asset, which would allow it to carry CareerBuilder on its income statement instead of treating it as an unconsolidated minority position. As CareerBuilder grows, Gannett's ownership would be increasingly valuable.

"But a Gannett bid would also amount to betting big on newspapers, and bidders all along have said that the falloff in newspaper industry performance has made it difficult to predict what papers like the Los Angeles Times and the Chicago Tribune are really worth.

"Therefore, some observers believe that selling parts may be the only feasible way to restructure the company.

"Separately Tuesday, Tribune said it received federal approval to sell television stations in Boston and Albany, N.Y., bringing to $450 million the amount raised since the company said earlier this year it would unload $500 million of 'non-core' assets."

James Rainey in the Los Angeles Times reveals that some say that "lukewarm bids had increased the chances that Tribune would be sold in parts or that it would be reduced in size and taken private by current management. "I think Tribune management and the Chicago-centric directors of the company intend for it to come through this fairly whole," newspaper analyst John Morton said.

The Wall Street Journal's Sarah Ellison notes: "The announcement appeared inevitable to some parties involved in the bidding, who have privately said that the auction process has appeared disorganized for weeks. According to a person familiar with Tribune's thinking, the company would have preferred a quick sale for the entire company. Now, management is juggling a variety of complicated options, including a possible spin-off of its TV stations or the Los Angeles Times, this person said."