NEW YORK: Tribune Co. has agreed to sell its two smallest newspapers, both in Connecticut, to Gannett for more than $65 million, The Washington Post reports today. But what does this signal about the company's desire to sell off the entire company? .
The Post relates that Tribune offered the Greenwich Time and Stamford Advocate to two prospective buyers, Gannett and MediaNews Group, "according to a source familiar with the sale who spoke on condition of anonymity because the deal has not been announced."
Gannett outbid MediaNews for the two papers. Tribune also owns The Hartford Courant and two TV stations in the state.
The Post story continues: "Tribune is considering offers for its remaining nine newspapers, 25 broadcast properties, the Chicago Cubs and other assets. It has said it will decide by the end of the month.
"The Tribune board is also weighing a 'self-help' plan that would spin off the television stations into a new company against three bids: one from Chicago real estate mogul Sam Zell, another from Southern California billionaires Eli Broad and Ronald Burkle, and a third from the Chandler Trusts, Tribune's largest shareholder.
"Tribune sought as much as $75 million for the Connecticut papers and $25 million more for the real estate on which they sit, which is likely to be sold to third parties.
"Even though Tribune has received offers for some of its largest properties, such as the Los Angeles Times and the Baltimore Sun, the company has been reluctant to sell its big assets piecemeal because of the large tax bills that would be incurred. Tribune's Connecticut papers are geographically close to papers owned by Gannett and would allow the company to save money by combining the resources of its new properties with its existing ones. Gannett owns the Norwich Bulletin in Connecticut and the Journal News in nearby Westchester County, N.Y."
