NOTE: SAM ZELL PURCHASED TRIBUNE CO. & THEREFORE THE ORLANDO SENTINEL IN 2006=DP
Zell Admits Tribune Co. Purchase Was a Mistake
Sam Zell has admitted that his purchase of the Tribune Co. was a mistake. He said he did not foresee the decline in the newspaper industry. “I was too optimistic in terms of the newspaper’s ability to preserve its position,” he told Bloomberg Television.
Zell said that the sooner the newspaper industry acknowledges that the current model of newspapers does not work, the better, writes the Chicago Tribune.
Still, he said, the company’s filing for bankruptcy in Dec. 2008 was a move that hopefully will “stop the bleeding and preserve a great company.”
Following Tribune Co. into bankruptcy early this year were the Journal Register Co., the Minneapolis Star-Tribune and the parent company of The Philadelphia Inquirer. ZenithOptimedia expects newspaper ad spending will fall 12% in 2009. For the first quarter of the year, some larger newspapers are seeing ad declines of as much as 30%.