Frederick M. Brown/Getty Images
Meet the new CEO of Tribune Co., owner — and possible soon a seller — of the L.A. Times.
Tribune Co. emerged from bankruptcy last year owned by a bank, JP Morgan, and private equity investors from Los Angeles-based Oaktree Capital Management. Now it's going to be run by an executive whose most recent job was at the giant private equity firm the Carlyle Group. Peter Liguori landed there for a stint after serving as the Chief Operating Officer at Discovery Communications.
Last year, the bankers and private-equity guys who now control the company started to talking to yet more bankers about possibly selling Tribune Co.'s newspapers, which include the Los Angeles Times and Chicago Tribune, as well as local TV station KTLA.
In an interview with the L.A. Times published Thursday, Liguori said that he's isn't interested in selling, say...the L.A. Times for a "fire sale" price. And then he said some other things:
The Los Angeles Times building. Parent company Tribune could sell they newspaper on emerging from bankruptcy.
Bloomberg reported Tuesday that Tribune Co., owner of the L.A. Times along with the Chicago Tribune and six other newspapers, is "talking to bankers about a possible sale" of the newspaper properties.
Media watchers swiftly named Rupert Murdoch as a potential buyer, as has already been widely speculated, here at the DeBord Report and pretty much everywhere else that's following the prospective new owernship of Tribune's newspapers.
What's interesting here is that Tribune Co. is effectively owned at this point by bankers. To be specific, J.P. Morgan Chase, L.A.-based Oaktree Capital Management (a private equity firm), and Angelo, Gordon & Co. (a specialist in distressed newspaper debt). So you have the unsurprising event of Tribune electing to put some or all of its newspapers up for sale to avoid the challenge of reviving that form of media from a long-term structural decline. That's happening right alongside the odd specter of bankers, at some level, talking to yet more bankers about how much the papers are worth and who might buy them.
The Los Angeles Times building. It's emptier than it was last week.
The first quarter of 2012 is almost over, and you know what that means: more layoffs at the Los Angeles Times. According to LAObserved, "as many as 20 people may be out" — but the business section is hiring a reporter to cover the food-and-agriculture beat.
Layoffs have become a fact of life at the LAT, whose parent, Tribune Co., is still in bankruptcy. What appears to be going on now is that the paper is chopping back on its features and special sections, concentrating instead on news, business, sports, and entertainment — the core coverage areas. Three stand-alone weekly section, for example, were recently rolled into one Saturday section.
This happened at the same time the LAT announced the introduction of a paywall
Economic pressure on the newspaper business has caused a reversal — a slow reversal — of a trend that defined the growth of big metro dailies like the LATimes and the New York Times. The creation of additional sections covering topics like food, health, science meant that newspapers needed additional platforms for ads. This transformed broadsheets into hefty print products. The Wall Street Journal has defied this reversal, adding lifestyle sections since 2010. But that's a case of a paper that primarily covered the financial markets going for a more general interest/metro New York mix.