Tribune Co., the Chicago media conglomerate whose publications include Hartford Courant, the Chicago Tribune and the Los Angeles Times, said it would separate its broadcasting and publishing businesses.
The announcement comes after months of speculation that Tribune Co. was looking to sell off some or all of its newspapers, which have acted as a drag on the company’s earnings.
Under the proposed spin off, a new company, Tribune Publishing Co., would inherit the Los Angeles Times, Chicago Tribune, The Baltimore Sun, Sun Sentinel (of South Florida), Orlando Sentinel, Hartford Courtant, The Morning Call and Daily Press.
The company’s remaining holdings, including 42 local television stations, WGN Radio, WGN America, Tribune Studios, Tribune Digital Ventures, Tribune Media Services and various equity interests and real estate assets, would remain under the control of Tribune Co.
“The separation is designed to allow each company to maximize its flexibility and competitiveness in a rapidly changing media environment,” CEO Peter Liguori said in a July 10 release.
He said the spin off would also enable the company “to take advantage of the operational and strategic opportunities created by the significant scale we are building in broadcasting,” highlighted by recent close of Tribune Co.’s $2.7 billion acquisition of 19 Local TV stations.
The spin off is subject to a number of conditions and regulatory approvals, and the company did not say when it expected the move to be finalized.
