United States
Zell makes a dealPosted Jul 20 2007
The Tribune Company has a new boss – Sam Zell, a self-made billionaire who spent his career in real estate. The Tribune Company owns leading newspapers such as the Los Angeles Times and The Chicago Tribune. Zell won the bid among billionaires in purchasing the company by offering a $315 million investment in the company, $34 a share or $8.2 billion to its stockholders and raises for newspaper managers. The problem that raises questions and eyebrows in the newsroom is how the Chicago tycoon, who has no experience in media, will handle operating big named newspapers at a time of financial and readership downfall in the print world. Zell has already made some financial strategies in the weeks he's been boss. He plans on selling the Chicago Cubs, which are currently under ownership of the Tribune Company, after the end of this season. Zell also plans to raise salaries of newspaper management. According to The New York Times: “Under the new plan, however, the company will no longer contribute to the 401(k), although employees will be free to do so. Instead, it will establish a cash-balance pension plan, which will accrue interest, and be funded with an amount equal to 3 percent of an employee's base pay.”