By: Martha L. Stone New Media Unit May Spin Off In 2000
Tribune Interactive (TI), the half-year-old new media unit of Chicago's Tribune Co., may go public, a company official said this week.
``We would consider taking part of it public and monetizing,'' said Donald Grenesko, Tribune Co. senior vice president of finance and administration. ``If we do not get proper valuation, we will do whatever is necessary to get it for our shareholders.''
TI President Jeff Scherb was unavailable for comment about a possible IPO timeframe or strategy, but a TI spokeswoman said no plans are in the works at this time.
Just two months ago, Scherb told E&P he had no immediate plans to take the company public, and that the company's energies would be focused on profitability and efficiency strategies.
Grenesko said at the PaineWebber conference in New York that the Interactive unit should experience losses this year of about $30 million and those losses will ``be somewhat higher next year.'' Scherb reported at the same conference that the unit has racked up more than $25 million in annual revenue and more than 70 page views per month.
?Now, we are focusing on content and e-commerce to further build our market position and grow revenue in 2000,? Scherb said.
``As part of Tribune Co., we have unequalled local content creation capabilities, trusted local brands, and promotional power and reach,'' Scherb said. ``We already have demonstrated success in both local and national businesses.?
Tribune Co. Chairman, President, and CEO John W. Madigan reported on the company's strong growth in 1999 and bullish outlook for 2000 at the Donaldson, Lufkin and Jenrette Media Conference, also in New York.
``1999 has been a great year for us,? he said. ?We expect to end it strong and again meet Wall Street's expectations for earnings and cash flow growth.
``Our newest business group, Tribune Interactive, has the advantage of being able to build on the reputation of our newspapers and television stations. You can expect us to be very active in pursuing electronic business opportunities, both locally and nationally.?
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Martha L. Stone (martstone@aol.com) is principal of Advanced Interactive Media Group and writes frequently for Editor & Publisher Interactive.
(c) Copyright 1999, Editor & Publisher
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