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| Tribune Company Files For Chapter 11Consider it an update of my earlier post. $13 billion in debt and $7.6 billion in assets is no way to go through life son."So, how did we get here? It has been, to say the least, the perfect storm," (Owner Sam) Zell wrote. "A precipitous decline in revenue and a tough economy have coupled with a credit crisis, making it extremely difficult to support our debt. All of our major advertising categories have been dramatically impacted."There's nothing about their craptastic journalistic performance, especially at the LA Times. I wonder why. Whether it's a media company, a financial institution or an automaker, it's funny how their failed business always seems to be someone else's fault. Maybe the harsh cost of failure will make room for some people who actually keep their eye on the ball and provide products and services at a price people are willing to pay. I'm no business school major but I'm pretty sure that's the key to success. If you can't deliver on that simple idea maybe you need to go away for everyone's long term good. Comments1
Zell forgot to add "and no one reads our crappy paper".
Posted by: Penfold at December 08, 2008 03:03 PM (lF2Kk) 2
I wonder if they wonder if hiding that video of Obama at the Jew-hating party was clearly the right business decision.
Posted by: WalrusRex at December 08, 2008 03:06 PM (DVVXZ) 3
#2, I guess that depends on whether Obama remembers who his friends are, and how much of a bailout it's worth to him.
Posted by: Cautiously Pessimistic at December 08, 2008 03:08 PM (ltwze) 4
Perfect Storm my ass. You pissed off half your fucking readers you blithering idiot. Posted by: Eleven at December 08, 2008 03:08 PM (7DB+a) Posted by: IreneFingIrene at December 08, 2008 03:09 PM (lhxhu) 6
Is anyone else getting tired of this perfect storm argument as an excuse for a poor business model? When a business fails it is proof of poor foresight and a lack of reserves as a buffer against a bad plan.
Toyota, Honda and Mitsubishi seem to be weathering this perfect storm. Maybe their ships were built with the possibility of a storm happening in the ocean that they sailed in. Just saying. Posted by: locus ceruleus at December 08, 2008 03:11 PM (e2mBS) 7
Good thing they weathered the election as a liberal mouthpiece. They're automatically bailout-qualified now!
Posted by: Jazz at December 08, 2008 03:13 PM (hnq5i) 8
If a car salesman lies and tells you that a car will get forty miles to the gallon when it actually only gets twenty-five miles to the gallon, he may have cheated you but at least you have a car. If a journalist lies to you, you have absolutely nothing. The sole reason for buying a newspaper is to learn what is going on. If the newspaper lies by omission or commission then the newspaper is utterly worthless.
I guess that they don't teach that in journalism school. Posted by: WalrusRex at December 08, 2008 03:15 PM (DVVXZ) 9
Rush could buy up Zell's crappy paper with pocket change and turn it into an overnight success, but then, having two mega-bestselling books, a #1 newsletter, and the #1 radio show in the country would probably prompt him to ask, "Why bother?"
Of course, the flaming idiots in the MSM don't take note of successes like Limbaugh because it really isn't about success at the end of the day, it is about the re-education of the American people into the cult of Liberalism. A communist country where they don't have to compete with free speech rights, and general liberty will be deemed their "success". Posted by: J David at December 08, 2008 03:19 PM (1GOej) 10
good one on the hiding the tape stuff. if you can't even get the journalist part right, how do you expect the rest of the icky business related let's make a profit stuff to come together. coming from Illinois, both the Trib and the Sun Times were in a prime position to do actual reporting on Obama's background. they never did it-instead, the ST had their obama reporter swooning over his pecs while the Trib's race columnists (all of them with the exception of John Kass) wondered why anyone would view Wright as a little out there and Ayers as a little seamy.
Posted by: ed at December 08, 2008 03:21 PM (Urhve) 11
Heh, if this is the reward for the disciples of the Lightworker, how bad are the rest of us gonna get fucked?
Posted by: Iblis at December 08, 2008 03:21 PM (9221z) Posted by: The Ghost of Sam Zell' at December 08, 2008 03:22 PM (AHrTm) 13
Via Drudgereport:
NYTimes Co. to borrow against building The New York Times Company plans to borrow up to $225 million against its mid-Manhattan headquarters building, to ease a potential cash flow squeeze as the company grapples with tighter credit and shrinking profits. Posted by: liontooth at December 08, 2008 03:23 PM (n3pxb) 14
Liberalism is a religion, and corporate success isn't as sufficiently inspiring as cult fanaticism, for which cause corporate suicide must sacrifice itself in proving its zeal.
Posted by: J David at December 08, 2008 03:24 PM (1GOej) Posted by: johnn_p at December 08, 2008 03:27 PM (ldoxy) 16
Ah. Rest assured that Ole Sam will be just fine so long as Young Sam is still operating his head. Recall the acumen of your youth Ole Sam.
Zell began his business career by buying copies of Playboy magazine and reselling them to neighborhood boys at a 600 percent markup. Posted by: The Ghost of Sam Zell's Past at December 08, 2008 03:27 PM (AHrTm) 17
The NYTimes is borrowing against their expected bailout, that Michelle Malikin started predicting a couple of weeks ago. Once the Old Gray Whore is sufficiently in hock, the politicians who owe their careers to the Time's protection will bail the Old Slut out.
Posted by: J David at December 08, 2008 03:28 PM (1GOej) 18
We get the Internet. We thought it was just a faster way to print a paper, when it was really a faster way to gather information, one that didn't require us.
Posted by: Chicago Luddite-Tribune Board of Directors at December 08, 2008 03:40 PM (uiKEv) 19
I'm not buying in to this newspaper bailout scenario. The banks everyone thought needed bailing out because of the overall liquidity issues that would occus if the government had not bailed them out. The automakers, not as much public support, but some...because nobody wanted to see Cadillac or Ford go out of business. The NY Times or any of these other crappy newspapers? Just about everybody thinks they all suck. I don't think Baracky is going to waste political capital on them.
Posted by: nikkolai at December 08, 2008 03:42 PM (+RLn7) 20
SO, does this mean the Cubbies are available to the lowest bidder? I might have $25 laying around. I wonder if they'd take it? Posted by: todler at December 08, 2008 03:42 PM (fPOY0) 21
Yeah, well, I AM a business school graduate, and you are absolutely correct. These goofballs are all saying "oh, the economy sank my business, it's not my fault!" So very similar to the homeowners defaulting on their mortgages - if only the housing market continued upward in unprecedented fashion, all would have been well! The difference, of course, is that these CEOs are being paid millions to do their job, and they are blaming everyone else while they failing. Worse, as in the case of Thain at Merrill Lynch, they are demanding to be paid for failing less than the other guy!
I have no problem with huge payouts for CEOs when the businesses do well - even when it's the economy driving their business. We (shareholders and employees) make money, CEO makes money. All good. Asking for big bonuses in a year your stock drops 60%? Now that takes some serious balls. And it's a giant middle finger to all of us, as they think we will go along with it. Posted by: BetaPhi at December 08, 2008 03:46 PM (OINAg) 22
The Tribune used to be a real newspaper, then it decided to become a Media player, owning lots of papers, radio, TV stations, the Cubs... WTF? Its just like the Big Banks that get run by geniuses who are bored with being bankers; want to be players and spend all their time buying banks and mergering, instead of making sure the banks deliver. The railroads went through this a couple decades ago. The survivors came out stronger and more focused. No Bailout Posted by: ungtil I get mine, where is it by the way? at December 08, 2008 03:50 PM (V9Itm) 23
You know Sam Zell went to business school right?
Oh shit. He didn't. He's a non-practicing lawyer. BS and JD from University of Michigan. This might be the fault of Rich Rodriguez's offense. SO, does this mean the Cubbies are available to the lowest bidder? The Cubs fans were on this one quickly. The Cubs are safe. Apparently they aren't liable for any of the Tribune's debts. Posted by: The Ghost of Sam Zell's Past at December 08, 2008 03:51 PM (AHrTm) 24
The failure of the old media is the single most, perhaps only, salutary development in sight for the good of our society.
Posted by: PJ at December 08, 2008 03:52 PM (FG8qn) 25
The NY Times or any of these other crappy newspapers? Just about everybody thinks they all suck. I don't think Baracky is going to waste political capital on them. I think Nikkolai is right on this. Even liberals, maybe happy with the Times' slant, know that the outright quality of the product is going downhill. I know our local Gannett rag is doing horrible, and is only worth the sports section and seeing what Dagwood and Hagar are up to. (Completely unrelated, but anybody notice that B.C. has gotten a bit darker in it's humor since the new guy took over for Johnny Hart? It's good, but just different.) But if the media allows itself to be bailed out, then they give up, pretty much for eternity, that last figleaf of imaginary objectivity. You can't "be independent," or "speak truth to power," or be "the fourth branch of gov't," etc., when you've previously went begging to that same gov't for economic survivial. It would almost worth it if they tried, just to see them try to rationalize it. Posted by: Lee at December 08, 2008 03:58 PM (TxTIh) 26
Swirl, Bitches. SWIRL
Ha haaaa! check out Angryjournalist.com for some real head scratchers. What a bunch of whiny punks. Posted by: Melodic Metal at December 08, 2008 04:07 PM (0TU9n) 27
Zell didn't run the Tribune into the ground. He's more like the paramedic who arrived after the patient went into cardiac arrest. And as to his business acumen: the guy's worth like $14 billion or something. I think he's done okay in his career.
That said, he probably bought into the "bad economy" B.S. and failed to recognize that the core product sucks, too. He's spent far too little time on the paper and far too much on the balance sheet. Posted by: Fresh Air at December 08, 2008 04:09 PM (meVfb) 28
The Trib in chapter 11? To this lifelong resident of Chicago Obamaville, it's amazing. And sad. The Tribune started up in the 1850s as an anti-slavery, Republican paper. It supported Lincoln; and later, it continued to publish even when half the city burned down in 1871. Ring Lardner wrote for it, and Carl Sandburg, and Vachel Lindsey, even. In the 1960s, I remember the old, ultra-conservative Tribune, the one that would run front-page cartoons of a superbly muscled Uncle Sam rolling up his sleeves to beat the crap out of some hippie. Though from reading it, I thought "through" was spelled "thru" and "cigarette" spelled "cigaret". I haven't bought a copy in years. Why bother? Nowadays, the writing is drivel, and editorially it's just one more voice in the left's amen corner. Why shell out 75 cents for crap? Sic transit gloria mundi, and all that. Posted by: Brown Line at December 08, 2008 04:09 PM (VrNoa) 29
Those who think the Fourth Estate is not going to be protected as the enforcement/ propagandist arm of the Obamunist that they are, are naive about communists. It isn't about what the people think anymore, it is about manipulating their thinking sufficiently to keep them from marching on Washington with pitchforks until the Revolutionary gov't can come fully intompower.
Posted by: J David at December 08, 2008 04:17 PM (1GOej) 30
Does this mean that starving journalists will be dying soon in a gutter near me?
Posted by: Simon at December 08, 2008 04:27 PM (ggOkS) 31
Can I watch?
Posted by: Simon at December 08, 2008 04:28 PM (ggOkS) 32
Maybe the LA Slimes thought it was good for them to support Spanish only classes in Southern California schools. Does the Slimes print in Spanish? No, but La Opinion thanks them for taking them out of competition for readers. My schadenfreude will be complete when the day comes that I see Steve Lopez and Tim Rutten trying to make up for the loss of their 6 figure incomes by blogging from their laptops in a Silverlake coffee house. As for the Trib and other fishwrap companies circling the bowl, I offer Shakespeare.... "Nothing so became his life as the leaving of it"
Posted by: kbdabear at December 08, 2008 04:28 PM (miw86) 33
The Tribune just needs to believe in the wonders of the Messiah and it will be saved. His words alone can bring about financial goodness!!!
NEW YORK – A stock market gaining in confidence shot higher for a second straight session Monday as investors bet that President-elect Barack Obama's plans to increase infrastructure spending will help lift the economy back to health. The major market indexes jumped more than 3 percent, and the Dow Jones industrials' nearly 300 point advance gave the blue chips their highest close in a month. His weekend announcement gave a lift to a range of companies, from machinery makers to materials producers. Alcoa Inc., the world's third-largest aluminum producer, surged 18 percent on the news; while heavy-equipment maker Caterpillar Inc. jumped 11 percent. Of course the two fucking AP morons who wrote this article asked everyone on Wall Street and they said the Messiah's words lifted the market. Now tomorrow if the Dow goes down it's evil George Bush's fault. The AP needs to go out of business ASAP. Posted by: TheQuietMan at December 08, 2008 04:34 PM (0jjWT) 34
If the newspaper lies by omission or commission then the newspaper is utterly worthless.
The LaTimes is anti-knowledge; the more you read it, the less you actually know. Posted by: toby928 at December 08, 2008 04:40 PM (PD1tk) 35
This is what they get for endorsing Obama. Screw the Trib. I still wont buy their fishwrap.
Posted by: Nyctalus Lasiopterus at December 08, 2008 04:47 PM (EPSru) 36
Good lord, here comes the ugly. Newspapers employ the ugliest fucking people on the planet. Now they're going to be hittin' the streets during daylight hours. I grieve for this country for that alone. Faaaack...
Posted by: Dang at December 08, 2008 04:48 PM (XFyLb) 37
Zell didn't run the Tribune into the ground. He's more like the paramedic who arrived after the patient went into cardiac arrest. And as to his business acumen: the guy's worth like $14 billion or something. I think he's done okay in his career. So tell me again, why is his business filing for bankruptcy? Sure Tribune is 13 billion in debt, but he could pay it off and still have a billion to his name if the 14 billion is accurate. Posted by: Darth Randall at December 08, 2008 04:53 PM (oLULt) 38
What wonderful news. Let's hope the next stop on this train is Chap. 7 Zell is a creep and deserves to get wiped out financially.
Posted by: Sarah Becker at December 08, 2008 04:53 PM (C3qa2) 39
#25, if the bailout happens, the MSM already has a template to claim objectivity: NPR/PBS. Why, just look how tough they were on Bush! Taking money from the government certainly didn't affect their coverage. Nope. Not a bit. But I agree with you and others that Obama's bus still has some room under it, and the tribune may discover the worth of a politician's gratitude, shortly. Posted by: Cautiously Pessimistic at December 08, 2008 05:04 PM (ltwze) Posted by: I R A Darth Aggie at December 08, 2008 05:09 PM (1hM1d) 41
Darth--
So tell me again, why is his business filing for bankruptcy? Sure Tribune is 13 billion in debt, but he could pay it off and still have a billion to his name if the 14 billion is accurate. Zell invested, IIRC about $400 million in equity in the Tribune. The rest of his money is invested elsewhere and comes from the sale of his real estate holdings. He took on the Tribune as a turnaround project and a lark. He didn't sign up to toss away his fortune. I'm not even sure what you're asking. Investors don't pay off debts. They borrow money from banks. If they lose their equity, so be it. They don't stand by to pay off a corporation's debts. Posted by: Fresh Air at December 08, 2008 05:09 PM (meVfb) 42
Does the Slimes print in Spanish? No...
Actually, the Tribune Co. founded the largest Spanish daily in the country, which is so bad they have to give away: Hoy. Posted by: Fresh Air at December 08, 2008 05:11 PM (meVfb) 43
What a shame Zell can't figure out a reason for the "decline in revenue." Jackass.
Posted by: rori at December 08, 2008 05:20 PM (2e4Y0) 44
Zell, part of that perfect storm you failed to mention, but you know damn well its the main reason, is giving blowjobs to Dems and The Dictator elect rather than actually reporting the unbiased news. We in the public all know just how in the tank all of you were and that your circling the bowl is your damn own fault. You brought it on yourself, not the tough economy. Survival of the fittest and all. Had you been unbiased and reported the news without blatant whitewash, asskissing and coverups, i have no doubt readers would have flocked to the paper in droves as the cancelled subscriptions to the in the tank newspapers
So glad to hear your going belly up Posted by: Jody C. at December 08, 2008 05:22 PM (B/Y39) 45
Hey Zell, just shut the fuck up and go away. Maybe Obama will get you a job, you kissed his ass enough.
Posted by: GarandFan at December 08, 2008 05:25 PM (237hA) 46
Does this mean that investors might figure, that liberal Bullshit papers, that only reprint AP wire stories and go on crusades for Al Gore are not big sellers? Perhaps someone would TRY to publish a conservative paper. The NY Post is the closest thing we have and its a tabloid. Ya reap what you sow. Asshole socialist editorial writers. You fought Capitalism and now we got your asses. Maybe "The One" will give all of you all jobs. Shit, that means I be paying their sorry asses. Kemp
Posted by: kempermanx at December 08, 2008 05:26 PM (2+9Yx) 47
Does this mean that investors might figure, that liberal Bullshit papers, that only reprint AP wire stories and go on crusades for Al Gore are not big sellers? Posted by: kempermanx at December 08, 2008 05:26 PM
This is a rhetorical question, right? I mean you're talking about the Deciders©2007. They get to blame who they want for their troubles. Posted by: RedRiverTed at December 08, 2008 05:34 PM (Z7fcC) 48
NYT, LAT and thier ilk are not the only propaganda media in the sea. Who needs tons of in the tank newspapers when just a handful will do while the others go belly up? Almost all of them spent a majority of time sucking off Dictator elect in the hopes that they will be "kept on". They served their prupose now that the election is over. You'll be thrown away while a select few will be saved to keep the public in the dark and whitewash everything Dicatotor elect says and does. Adolf didn't need a mass amount of media to spread the propaganda Posted by: Jody C. at December 08, 2008 05:43 PM (B/Y39) 49
I am sure it has already been noted, but these journalists were talking down the economy when it wasn't doing too bad (the Seven Year Bush Recession) while ignoring or downplaying warning signs of crisis because it suited their political fancy-spending going up? more government programs to force home loans to people with no money? not a problem. now, suddenly, the economy has an actual effect on their employment. will it result in more intellectual honesty in the newspapers? of course not, as we know from the headlines (AP) saying that the Dow is going up because of Obama's "stimulus" plan while it never went down because of his tax plans.
Posted by: ed at December 08, 2008 05:54 PM (Urhve) 50
Fresh Air Zell invested, IIRC about $400 million in equity in the Tribune. The rest of his money is invested elsewhere and comes from the sale of his real estate holdings. He took on the Tribune as a turnaround project and a lark. He didn't sign up to toss away his fortune. I'm not even sure what you're asking. Investors don't pay off debts. They borrow money from banks. If they lose their equity, so be it. They don't stand by to pay off a corporation's debts. It seems to me that Investors do pay off some of the debt with their investment. That said, I can understand why Zell doesn't want to waste anymore of his money. And at least he isn't begging for a government handout. Posted by: Darth Randall at December 08, 2008 06:27 PM (oLULt) 51
What do you call a print journalist bum in six months? A Fucking homeless bum.....God I love that joke..
Posted by: hutch1200 at December 08, 2008 06:29 PM (gz8Cr) 52
OT, Gutterball the Magnifique says he isn't going after guns and "Americans don't have to stock up."
Can anyone say, 'utter bullshit' here? Posted by: enter sandman at December 08, 2008 07:00 PM (NE3rr) 53
"It has been, to say the least, the perfect storm." He was going to say it was a super-duper, you-have-to-be-kidding-me, so-far-beyond-perfect-it's-beyond-comprehension storm, but he restrained himself. So it's just perfect, and not better than perfect. And he runs a journalism business?
Posted by: Michael at December 08, 2008 07:29 PM (siOQ7) 54
Just got a call from the Times subscription marketers. "To celebrate the elections we've lowered the subscription to $1 per week."
I almost laughed but gave my usual line of "Sorry not interested." I heard the click on the other end before I could finish. They must be at the end of their rope because this was the 3rd or 4th call I've received this year. Posted by: adamthemad at December 08, 2008 08:19 PM (kIjlp) 55
They're going to send starving orphans to your door next, Adamthemad.
Posted by: PJ at December 08, 2008 10:16 PM (GVdvM) 56
Just think of the trees - somewhere there is a happy liberal celebrating the death of the print media. Of course Murdoch could sweep in now and clean up.
Posted by: Jean at December 08, 2008 10:36 PM (HVRSA) 57
In reality, Sam Zell is actually one of us. He hates taxes like they're the devil incarnate. He's spent most of his life trying to avoid paying them.
I'll bet he likes guns too. Posted by: The Ghost of Sam Zell's Past at December 09, 2008 12:36 AM (VeUJ4) 58
#8: The sole reason for buying a newspaper is to learn what is going on.
If the newspaper lies by omission or commission then the newspaper is
utterly worthless. I guess that they don't teach that in journalism school.
--walrus rex On the f'n nose, man--all three points. Unfortunately for those interested in justice, *every* left-wing paper facing bankruptcy will indeed be bailed out by Obie (i.e. by you, involuntarily). Reason is that it costs Obie zero--after all, it's *your* tax dollars--and it keeps more leftist journalist/Dem-whores singing the praises of The One. Perfect storm indeed. Posted by: sf at December 09, 2008 10:39 AM (EsQly) 59
Mabyr Governor Blago can help 'em. I hear he has a lot of friends in high places.
Posted by: trentk269 at December 09, 2008 05:13 PM (i6cFP) 60
Maybe the harsh cost of failure will make room for some people who actually keep their eye on the ball and provide products and services at a price people are willing to pay. I'm no business school major but I'm pretty sure that's the key to success. If you can't deliver on that simple idea maybe you need to go away for everyone's long term good. Gasp! How dare you make such an un-nuanced suggestion. It has recently been discovered that Big Government is more discerning and more intelligent than market forces - did you not get the memo? Posted by: DJ Douche at December 10, 2008 03:27 AM (QKrrS) 61
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