One or two of the dueling billionaires – Sam Zell, Eli Broad and Ron Burkle – could learn as soon as today whether they’ll be chosen to be the next owner of Tribune Co.’s vast newspaper and TV-station empire.
Tribune’s independent board members continued a two-day meeting yesterday in hopes of deciding which of the two best offers they will choose – an 11th hour bid made by West Coast-based Burkle and Broad, or one from the local favorite, Zell.
The Chicago-based company had a self-imposed deadline yesterday to announce its fate after a lackluster six-month auction, but needed more time to consider the late proposals.
Tribune, owner of Long Island’s Newsday, the Los Angeles Times, the Chicago Cubs, and several TV stations, including WB11 in New York City, is reported to favor the bid from Chicago real-estate mogul Zell.
He initially proposed putting $300 million of his own money into Tribune, loading it up with debt, taking it private, and handing over ownership to workers at the company under an employee stock-option plan, or ESOP.
ESOPs offer big tax advantages that would make a heavy debt load less burdensome.
When California billionaires Broad and Burkle learned of Zell’s offer, they sweetened their earlier bid, topping Zell’s by a buck a share and also proposing an ESOP.
Tribune’s full board is expected to meet today and hear from the committee of independent board members. The full board could make an announcement today, or say it needs more time to consider its next move.
It’s possible Tribune would spurn all three billionaires and choose a “self-help” plan that would have current management deal with falling circulation and profits.