View all newsletters
Sign up for our free email newsletters

Fighting for quality news media in the digital age.

  1. Archive content
April 5, 2007updated 17 May 2007 11:30am

Battle of billionaires still on for control of US publishing giant

By Press Gazette

The big battle between a trio of American billionaires for control of the Tribune Company – America's second largest publishing conglomerate – is by no means over.

Two of them, Eli Broad and Ron Burkle, both Californians, have indicated they are prepared to make a new offer than would top the one offered by Chicago real-estate developer Sam Zell.

His offer – which topped $8,000 million was accepted in a late-night negotiating session last weekend. But the contract has not yet been formalized. And it still awaits Government approval which could take until the end of the year.

If the Tribune Company, which owns nine major US dailies including the Chicago Tribune, the Los Angeles Times, plus New York's Newsday as well as numerous small-town newspapers, 23 television and radio stations (as well as the Chicago Cubs baseball team) should renege on the deal, the only penalty would be a payment of $25 million to Sam Zell, which some have labelled "small beer" in a deal this big.

One big talking point since the Zell deal was announced is how little of his own money the 65-year–old real estate developer is investing in the deal – only about $315 million. As one Wall Street broker put it: "It's like getting a mansion for a pittance".

Although Zell has denied he intends to break up the company (except for the Chicago Clubs which will be put up for bids at the end of this year's baseball season) there is a suspicion that some of the less well-known papers might ultimately be sold off. One publisher who has his eyes on such a possibility is Rupert Murdoch, who for a long time has hankered after taking over Newsday, a rival to his New York Post which is published in the New York suburb of Long Island.

Content from our partners
MHP Group's 30 To Watch awards for young journalists open for entries
How PA Media is helping newspapers make the digital transition
Publishing on the open web is broken, how generative AI could help fix it

Email pged@pressgazette.co.uk to point out mistakes, provide story tips or send in a letter for publication on our "Letters Page" blog

Select and enter your email address Weekly insight into the big strategic issues affecting the future of the news industry. Essential reading for media leaders every Thursday. Your morning brew of news about the world of news from Press Gazette and elsewhere in the media. Sent at around 10am UK time. Our weekly does of strategic insight about the future of news media aimed at US readers. A fortnightly update from the front-line of news and advertising. Aimed at marketers and those involved in the advertising industry.
  • Business owner/co-owner
  • CEO
  • COO
  • CFO
  • CTO
  • Chairperson
  • Non-Exec Director
  • Other C-Suite
  • Managing Director
  • President/Partner
  • Senior Executive/SVP or Corporate VP or equivalent
  • Director or equivalent
  • Group or Senior Manager
  • Head of Department/Function
  • Manager
  • Non-manager
  • Retired
  • Other
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
Thank you

Thanks for subscribing.

Websites in our network