Tribune May Consider LBO or TV Spinoff

So says WSJ. Tribune is expected to consider some radical options at a big board meeting today, including taking the company private in a leveraged buyout or spinning off its TV-station group.
Already under pressure from investors over its stock price, the company has endured months of Chandler family shareholder turmoil. In recent days, the company also has faced a rebellion at one of its biggest operations, the Los Angeles Times, where the newspaper’s editor and publisher are resisting pressure to make further cuts in staff.
Staci adds: The Tribune could solve some of its problems by selling the LA Times to local investors — several billionaires have expressed serious interest — but essentially that would mean admitting an end to its national strategy.
LAT: A conciliatory email to the staff yesterday from LAT Publisher Jeffrey M. Johnson stressed the common ground between Tribune management and the paper, just in time for it to look as if things were calmer heading into the board meeting. The main purpose of the meeting was supposed to be solving the more immediate problem of appeasing the dissident Chandler shareholders.
Update: AP: Tribune shares are up more than 5 percent on spec that the company is getting ready for major restructuring. Jerry Paul, CEO of Quixote Capital Management: “The odds in my mind keep going up that there’s going to be a big breakup. It’s the kind of thing that’s going to evolve over the next six to 12 months.”

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