Zell on Tribune Deal

ZELL ON TRIBUNE DEAL
[SOURCE: Editor&Publisher, AUTHOR: Mark Fitzgerald mfitzgerald@editorandpublisher.com]
Zell, who is leading the $8.2 billion deal to take Tribune private, said, "Because I don't view it as a 10-leveraged company. I view it as 61 different entities -- each with a wonderful opportunity to get lucky." He pledged to change the corporate culture at Tribune, just as he has with his many acquisitions in other industries. "Just by being private, the culture will change," he said. "We won't be forced to make decisions that are 90 days in relevance." And he suggested he was investing in Tribune for the long term. "If Tribune proves to be as successful an investment as I think it will be -- I mean, I'm not a private equity investor or have a five-year window; there's no exit strategy. This is a good investment. We want to succeed." The way the deal is structured, Zell added, he had a financial incentive to stay invested for at least 10 years. "When all is said and done, what must be remembered is a newspaper is a business. It used to be a fabulous business that made extraordinary margins. It's now a very good business with appropriate margins."
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