The world of Sam Zell, owner of Tribune, continues to be scrutinized. The conventional wisdom is that in the short term he needs to sell at least two major assets to be able to pay down his debt now that cash flow has been so reduced by declining revenues.
Today the New York Times weighs in with an analyis of Zell and Tribune, reporting that Zell is likely to sell an asset other than the Chicago Cubs and Wrigley Field in the next months. That asset, the Times said, could well be Newsday, though the complication is that Zell is pushing for a complicated non-cash deal so as to minimize his tax consequences.
Newsday, analysts tell the Times, is the kind of company that Zell needs for the long-term, but it is also the kind of company that would generate enough money to pay down Tribune's huge debt. Mike Simonton, senior director at Fitch Ratings, told the Times: "There is absolutely a paradox there." For the full story, click here.
--Noel Rubinton