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Technology Stocks : Media Industries: Newspapers, TV, Radio, Movies, Online -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (197)	8/7/2007 1:24:14 PM
From: MJ	Read Replies (1) \| Respond to of 8872

What does an investor/speculator like me do. I normally invest and trade based upon technicals. I did buy back in---will treat that buy as long term even to several years. Now thinking about whether to add to this. Note that there is also NWS.A which is about 2 dollars less than the NWS---the B shares. The A shares traded in higher volume than the NWS shares in anticipation of the Murdock's assumption of DJ/WSJ. Murdock's buy of the WSJ is a major shift for media-----setting the stage for another 100 years??? mj

To: Glenn Petersen who wrote (197)	8/22/2007 4:51:34 AM
From: stockman_scott	Respond to of 8872

Tribune Shareholders Back Zell's $8.2 Billion Buyout (Update4) By Tim Mullaney Aug. 21 (Bloomberg) -- Tribune Co. shareholders approved an $8.2 billion buyout led by billionaire Sam Zell and must now wait to see if his purchase of the second-largest U.S. newspaper publisher can be completed as planned. Zell's $34-a-share bid is 21 percent higher than Tribune's closing stock price today. About 97 percent of shareholders voted for the purchase, Chief Executive Officer Dennis FitzSimons said today at a meeting at Tribune's headquarters in Chicago. ``This is the first of key milestones that we think the company needs to complete in the second half of the year in order to get the deal completed,'' said Mike Simonton, an analyst at Fitch Ratings in Chicago, who rates Tribune bonds ``highly speculative'' or lower. Tribune needs approval from the U.S. Federal Communications Commission, and must comply with loan covenants so that banks will lend the $4 billion needed to complete the deal. A 93 percent drop in profit in the first-half has led investors to question whether Zell will close the deal -- or should. ``Despite the recent upheaval in the credit markets, my view of Tribune as an investment has not changed,'' Zell said today in a statement issued by Tribune. Simonton and Jake Newman of CreditSights Inc. say if the buyout goes through, Tribune may not be able to pay the $1.08 billion of annual interest on its $14 billion debt. The company, which owns the Los Angeles Times and 23 TV stations, is awaiting FCC waivers allowing the prospective buyers to own newspapers and TV stations in the same market, the last major hurdle before the transaction closes. `Capable Guy' Tribune shares rose 96 cents, or 3.6 percent, to $27.98 at 4 p.m. in New York Stock Exchange composite trading. They have declined 9.1 percent this year. ``Sam Zell is a capable guy and I think he's going to make it happen,'' Phil Rosanski, who owns about 1,000 Tribune shares, said after the meeting. ``There are some risks in the deal, but $34 a share is a cheap price for the assets of the Tribune.'' If the transaction goes through at that price by Dec. 31, shareholders will earn an annualized return of at least 59 percent, based on today's closing price. If it doesn't -- and Lehman Brothers Holdings Inc. analyst Craig Huber put the odds at ``no better than 50-50'' in an Aug. 14 note to clients -- shares may move as low as $4 to $5, Huber wrote. Terms Under the deal announced on April 2, Tribune is buying back almost all of its shares. The company purchased 126 million shares in May, using money borrowed from banks led by JPMorgan Chase & Co., and will buy the remaining 118.4 million after regulators approve the deal. After that, an employee stock ownership plan will own the company. The ESOP bought $250 million worth of stock at $28 a share using money borrowed from Tribune. The publisher has said in regulatory filings it can meet debt payments because it won't pay taxes after the deal and because it has cut capital spending and its dividend. Tribune's banks are committed to financing the rest of the transaction, FitzSimons, 57, said last month. The company expects the deal to close by year-end. ``We're seeing structural change in the media industry and we need to be better able to deal with it to improve our performance,'' FitzSimons said today. For banks to back out of the deal, third-quarter profit before interest, taxes and non-cash costs would have to be less than $120.7 million, Huber wrote. He estimates Tribune will earn $235.7 million on that basis. The calculations assume Tribune sells the Chicago Cubs baseball team as planned. Chairman Zell, 65, who will become Tribune's chairman when the purchase closes, is putting up $90 million of equity and has lent the company $200 million to date. Upon closing, his investment will convert to a $225 million loan and a $90 million warrant. The 15-year warrant will let him buy 40 percent of the company for $500 million to $600 million. That option lets Zell wait to see if Tribune can pay its debts and generate a return for shareholders before risking more money. Lower profit has fed skepticism about whether Zell will complete the buyout. Before this week, the difference between the $34 offer and Tribune's stock price was wider than all but five of more than 120 U.S. takeovers pending. Tribune's profitability is likely to erode further by year- end, moving close to levels that would allow banks to back out of the deal, Huber wrote. Delay A delay in FCC approval may push the deal into next year. The International Brotherhood of Teamsters, which says it represents 2,000 of Tribune's 21,000 employees, filed comments with the FCC urging the agency ``to make sure local and diverse views are protected before granting consent,'' the union said today in a statement. The union is seeking employee representation on the company's board. Rating services Standard & Poor's and Fitch have written that Tribune's assets would command billions less in a distress sale than the company will owe. S&P cut its corporate debt rating on Tribune a single level to B+ from BB- yesterday and said it expects to lower the rating again when the deal is completed. To contact the reporter on this story: Tim Mullaney in New York at tmullaney1@bloomberg.net Last Updated: August 21, 2007 17:07 EDT