Major publisher, Tribune, filed Chapter 11 bankruptcy yesterday, amidst a $13 billion debt. Tribune's holdings include both the Chicago Tribune and Los Angeles Times, as well as the Chicago Cubs and Wrigley Stadium. While the latter are not included in the bankruptcy filing, the company is looking to sell them. Spokespeople for the company have insisted both the TV stations and newspapers will continue to operate as normal.
Tribune is owned by real estate mogul, Sam Zell, who borrowed heavily to purchase the publisher in 2007, and analysts say most of the debt was created by this purchase. The next major payment is not due until summer of 2009, but Tribune does not appear to have the resources necessary to meet its goals. Tribune is the third-largest newspaper group in America (by circulation) and runs 23 TV stations.
While the bankruptcy restructuring may help the firm crawl out of debt, traditional news outlets continue to suffer thanks to the Internet and bloggers, such as myself. Zell is reported to be considering other options.
© C Harris Lynn, 2008
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