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Investing

Is Tribune (TRB) But-Out In Trouble?

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published

The publisher of the Los Angeles Times, part of The Tribune Company, has issued an internal memo saying that the newspaper’s cash flow dropped 27% during that last quarter, according to Bloomberg. The paper is the largest in the company’s chain.

Based on figures put out earlier by the Tribune,  ad sales could be off as much as 10% for the quarter.

Sam Zell has put together a deal valued at $8.2 billion to take the company public. The deal is highly leveraged so that any drop in cash flow would make that firm’s ability to keep up with debt service more uncertain.

Zell is bound to look at forecasts for the third quarter to see if the situation is getting worse with time.

If so, the deal could easily die.

Douglas A. McIntyre

Contact [email protected] for any questions or corrections.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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