Skip to comments.Zell Extends Latest Deadline For Cubs Bids (Dinosaur Media DeathWatch™)
Posted on 11/15/2008 5:10:01 AM PST by abb
Sam Zell's Tribune Co. has backed off its demand that a new round of bids for the Chicago Cubs arrive before Thanksgiving.
Just days ago, finalists to purchase the storied baseball franchise were told to deliver revised bids and financing plans by Nov. 27. But with instability in the credit markets making the process more arduous, groups vying for the team learned late this week the deadline is now considered soft, according to two people involved with the sale.
The shift is the latest setback for a sales process that has lasted since Mr. Zell reached a deal to acquire the media conglomerate in April 2007, when the economy and hunger for trophy sports franchises were significantly stronger.
Mr. Zell's recent offer to keep as much as 50% of the team for an undetermined period would make buying the Cubs more affordable. But Tribune's worsening debt problems have heightened the risk of a potential leveraged partnership with the distressed company.
Some $450 million in Tribune bonds due in 2010 are now trading at 36 cents on the dollar, down from 81 cents a year ago. This week Standard & Poor's downgraded the company's corporate credit rating to "CCC" from "B-minus."
(Excerpt) Read more at online.wsj.com ...
Pretty soon, the bonds will be worth more as food for the goat at the Billy Goat Tavern!
API Summit Concludes: Industry in ‘Crisis,’ Needs Outside Help
McClatchy Stock ‘Could Be Worthless,’ Analyst Says
I see the company folding by the end of the first quarter ‘09. They’ll have to sell the individual papers, if they can find buyers. But who would want to buy newspapers when they can’t bring in enough revenue to make payroll?
Think about the number of people involved in putting out a paper. Editors, reporters, pressmen, delivery men, and the administrative infrastructure to go with all those people. Ad sales just will not carry this overhead any more.
You are correct. In addition, now that we are in a recession, the Ad sales will continue to drop. Oh yeah, you forgot to mention payouts to AP and other wire services -- I LOVE the ripple effect on AP!
Hey,Sammy, tell us again why buying newspapers was such a
They are about to go cash flow negative.
Publishing operating cash flow was $13 million—a 91% decline from $148 million in 2007. The company said publishing ad revenues sank 19%, or $111 million, for the quarter.
I know the vast majority of papers are left wing rags but I am don’t like to see the newspaper industry folding. I just wish there was a political balance in the industry
If the reason for their upcoming demise was the fact that they are propagandists for the democrats then I would be overjoyed BUT I don’t believe that is the main reason —It is the fact too many people are satisfied to get their news and views from the sound bites on the nightly news
Just look at how many papers the country had in the 40s before TV or even radio earlier in time came on the scene
But it’s funny how these money losing business love to editorialize about how others should spend their money, about who should be taxed and by how much, who should get bailout money and why...
The inmates run the asylum!
How deep are Zell's pockets? How much do you think he is willing to invest in this turkey? Also, do you know his political allegiances?
Perhaps if they continue to collapse others will rise up to replace them. The MSM numbers are way down as well. People are fed up with the propaganda and one-sided “news” they receive. We need to rid these entities of their wholly liberal views; once that happens they might get their numbers up again. Katie, Charlie and Brian need to be replaced along with their producers; the newspapers need to die so they can come back to life as “newspapers” rather than the liberal rags they are today.
Nothing ever stays the same. I’m old enough to remember when every major city in Louisiana had a morning and afternoon paper. Shreveport, Monroe, Baton Rouge, New Orleans, etc. There was a politically diverse information distribution system in place.
About the late ‘60s, liberals and Marxists systematically targeted for takeover the broadcast industry - Hollywood, TV networks, newspaper, book publishing, magazines.
However, the internet has disrupted their monopoly on broadcast information distribution and we now have more information available to more people faster and more reliably than ever before in human history.
We conservatives had better figure out how to use it. The conservative broadcast media (National Review, American Spectator, etc.) is not up to the task of reaching the masses.
That’s what we have to do.
Zell is on the hook personally for about $350 million and Hank Greenspun about $150. Zell smooth-talked him into signing on.
Zell won’t put another dime into it. He was at least smart enough to do the deal on OP money. OP: other people.
LOL—Even the Cubs fans who thought selling the team would bring a change of fortune are seeing their hopes dashed, in Cubs fashion. And it’s Bush’s Fault! LOLOLOL
I’ve always loved communications. When I was a kid, I would make my parents drive past radio and TV stations so I could look at the broadcast towers. I always wanted to do HAM radio, but I never was disciplined enough to learn code.
Here’s a site I love to peruse that gives a good overview of how it used to be put together. Lots of history here.
Thanks for the data! I know quite a bit about OPM. The liberal's battle cry.
You think the Cubs want a jerk like Mark Cuban being the owner?