New York Post-

So much for Sam Zell, newspaperman.

 

The developer, who arranged a controversial $11.7 billion employee buyout of newspaper giant Tribune only to see the company careen into bankruptcy a year later, is on the verge of giving up his claims to buy a huge stake in the company and, according to a source familiar with the matter, is ready to walk away from the company.

 

As the employees who own the company see the value of their stake evaporate, sources said Zell himself appears to be ready to give up a warrant that gives him the right to buy 40 percent of the company for $500 million without being compensated.

 

Zell had raised eyebrows in late 2007 when he used a tax-exempt employee stock option plan, or ESOP, to finance Tribune's purchase. It meant Zell had little skin in the game, while the company's employees were left holding the bag.

 

...more in the link...

New York Post-

The Trib was already struggling and already looking down the barrel of some tough times. But boy, having Zell come in, leverage a buyout with huge debt, run the company through bankruptcy, manage it like a man who knows nothing about the business... and now he's just going to walk away? I hope, for his safety, after he leaves the company he ran into the ground, that he doesn't run into too many current or former Trib employees.

 

The Trib was already struggling and already looking down the barrel of some tough times. But boy, having Zell come in, leverage a buyout with huge debt, run the company through bankruptcy, manage it like a man who knows nothing about the business... and now he's just going to walk away? I hope, for his safety, after he leaves the company he ran into the ground, that he doesn't run into too many current or former Trib employees.

I'm sure he still made his money on the deal.

All newspapers will be history soon.

All newspapers will be history soon.

No they won't. They're just going to have to be more intelligent. A lot of newspapers are doing ok, although revenues are down. The ones that are going bankrupt or shutting down are the ones that had owners who took out huge loans to expand or to do other things who are then having those loans come due in a time of more restricted credit and lower profits.

No they won't. They're just going to have to be more intelligent. A lot of newspapers are doing ok, although revenues are down. The ones that are going bankrupt or shutting down are the ones that had owners who took out huge loans to expand or to do other things who are then having those loans come due in a time of more restricted credit and lower profits.

The Trib would be doing just fine if it was still a publicly traded company. It's the massive debt they have from the sale that caused them to go bankrupt.

All newspapers will be history soon.

 

Absolutely. . . the day after they are printed as a matter of fact.

 

The Trib would be doing just fine if it was still a publicly traded company. It's the massive debt they have from the sale that caused them to go bankrupt.

Uh... no. They weren't just fine before Zell came along. It isn't just that debt load that is causing them problems. The steady drop in subscriptions, the bad economy resulting in lower ad revenue, the increase in cost of paper (which has been massive), the increase in cost of rail transportation for supplies (paper and ink), then increased cost of gasoline for distribution, their own inability to adapt to electronic media quickly enough, the ease of finding news (even local news) faster in other internet locales, the load of unexpected federally litigated tax debt carried by the LA Times after acquisition... and the list goes on. All those things had already put immense pressure on the Trib. The act of being Zelled only added to the problems.