A record
seven Chicago Cubs
will hit the diamond in Tuesday's Major League All-Star Game at Yankee
Stadium. Tribune Co. chairman and chief executive Sam Zell can only
hope that bodes well for his auction of the team. First round bids for
the Cubs -- which is being sold along with Wrigley Field and Tribune's
25% stake in Comcast SportsNet Chicago -- are due Friday. Analysts are
predicting a price of around $1 billion, and at one point at least,
there were a reported
10 interested parties.
If the bidding heats up, it will be an unusual bit of positive news for the
upbeat and irreverent Zell.
The real estate tycoon turned publishing czar has been in near constant
deal mode this year, selling off assets to avoid defaulting on billions
in loans used to finance his $8.2 billion deal to buy Tribune. Consider
some of what has transpired since the buyout closed in December:
- Turmoil
and job cuts
at Tribune's flagship papers. The Chicago Tribune and the Los Angeles
Times have seen a parade of top editorial talent depart, the latest being
Times publisher David Hiller and Tribune editor Ann Marie Lipinski. And
with ad sales off 15% in first-quarter 2008, the papers have also been cutting jobs,
250 at the Times and 80 at the Tribune this year.
- A strategic review
of major real estate holdings. Zell announced in late June that he was
considering options for Tribune Tower and Times Mirror Square.
- A failed sale of Wrigley Field.
Zell was able to package the storied ball park in the Cubs' auction
only because an earlier sale fell through in June, when Tribune could
not
come to terms on a no-tax proposal from the Illinois Sports Facilities
Authority.
- The sale of Newsday.
Sure, the sale in May to Cablevision for $650 million will help
alleviate Tribune's debt burden, but it also meant the loss of a prized
asset in a troubled portfolio. Newsday brought in $500 million in 2007
revenue, accounting for 10% of Tribune's sales.
So where does this leave Zell? In addition to the Los Angeles Times and the Chicago Tribune, Zell's company owns
The Baltimore Sun, the Orlando Sentinel and a handful of smaller papers. Tribune's broadcasting group
operates 23 television stations and a number of news and information
Web sites.
When Zell took control of Tribune back in December, he announced his
intention "to create a fresh, entrepreneurial culture that is fast and
nimble." Getting there, it seems, is going to take some time.
- Suzanne Stevens
Join Corporate Dealmaker's LinkedIn forum
Juergen Lasowski
And the winners are...
Sam Zell is a putrid moron surrounded by a bunch of losers. He did well in real estate, where he was able to explot society's poorest and weakest, those living in trailer homes. He was an excellent parasite. But he began to believe his own lies about being a business genius, and that was his downfall. In a real business where you actually have to produce something, he's a dismal failure.