1. Welcome to SportsJournalists.com, a friendly forum for discussing all things sports and journalism.

    Your voice is missing! You will need to register for a free account to get access to the following site features:
    • Reply to discussions and create your own threads.
    • Access to private conversations with other members.
    • Fewer ads.

    We hope to see you as a part of our community soon!

WTF Chicago Tribune?! Zell cutting into bone now

Discussion in 'Journalism topics only' started by Joe Williams, Apr 13, 2009.

  1. Andy _ Kent

    Andy _ Kent Member

    ;D ;D ;D

    Great analogy! Although I'd like to hear him simplify it even more with a quote like this: "YES, I'M A TOOL!"
     
  2. Joe Williams

    Joe Williams Well-Known Member

    That would work, too. Always have known I need an editor. ;)
     
  3. I Should Coco

    I Should Coco Well-Known Member

    Here's the thing. Zell's "mistake" of buying the Tribune might have cost him "a great deal" of money, but the mistakes he's made running it over the past two years have cost hundreds of other people their livelihood. And he's basically inflicted a terminal illness upon what was once a great newspaper.

    Thanks a lot, Sam. You're a real hero.
     
  4. Sam Mills 51

    Sam Mills 51 Well-Known Member

    Phil Rosenthal's take: "I made a mistake, I was too optimistic":

    http://newsblogs.chicagotribune.com/towerticker/2009/04/sam-zell-on-tribune-co-acquisition-i-made-a-mistake-i-was-too-optimistic-.html

    There are comments actually defending Zell. Have at it, sharks ...
     
  5. Baron Scicluna

    Baron Scicluna Well-Known Member

    Dear Mr. Zell:

    The mistake you made wasn't buying Tribune while it was going downhill. The mistake you made was pissing off a bunch of people who were trying to preserve their livelyhoods. There was a right way, and a wrong way to go about running the company. You chose the wrong way.
     
  6. clutchcargo

    clutchcargo Active Member

    How much did Zell pay for the whole thing, and how much had the entity he bought it from paid for back when they bought it? I'm just trying to get a feel for the market valuation of what Zell bought, and how such an apparently successful guy in another field can be so reckless as to pay so much for something he knew little about and which would require him to lereverage so much of the purchase price and this take on exorbitant debt service.

    What an absolute airhead.
     
  7. Desk_dude

    Desk_dude Member

    Zell put $300 million into the Tribune company in Dec. 2007.
    He had an option to pay more and take greater control of the company.
    His money, along with borrowing, allowed the company to buy the public stock and go public. The was purchased for $34 a share. If it was still public, the stock would have been real low (like other public media companies).
    The company has around $10 billion in debt.
    Along with Zell, employees own stock in the company in their retirement fund (ESOP). But because the company is bankrupt, the stock is worthless. Ultimately, the creditors probably will take ownership of the company. With with Zell's stock also worthless, maybe the creditors would vote him out.
     
Draft saved Draft deleted

Share This Page