By Michael Oneal and Phil Rosenthal
Chicago Tribune
Published: 9/19/2006
Excerpt:
As the Tribune Co. board readies for a much-anticipated special meeting on Thursday, one conclusion seems inescapable:
No matter how it resolves its dispute with California's Chandler
family, the company's future will ultimately depend on its ability to
negotiate massive challenges faced by its major daily newspapers,
including the
Chicago Tribune and the
Los Angeles Times.
Sources close to the situation expect Tribune Chairman and Chief
Executive Dennis FitzSimons to present a plan at the meeting to unwind
two complex partnerships that lay at the heart of the months-long
dispute with the Chandlers, the company's largest shareholder.
If accepted, that in turn would enable the board to consider other
restructuring options that had been prevented by the partnerships--most
notably a tax-free spinoff of Tribune's local television stations that
has been advocated by the Chandlers since June. ...
... The debate over the
Times has
inevitably focused attention on whether that paper--and the rest of
Tribune Co.--would be better off in private hands.
Singleton says it's easier being private. So does
Paul Tash, editor and
president of Florida's
St. Petersburg Times, which is controlled by the
non profit Poynter Institute.
"This is about building a long-term business for the future versus maximizing profit in the short term," Tash said.
The
St. Pete Times, as it is known, maintains margins between 10
percent and 20 percent, he explained. If margins dip below 10 percent
the company assumes it is not profitable enough to support its future.
If the rate springs above 20 percent, the company isn't reinvesting
enough.
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