Sam Zell On Tribune Purchase: "I Made A Mistake"

In an interview with Bloomberg TV Wednesday, Sam Zell admitted today that his 2007 purchase of the Tribune Company was a "mistake" and likened the company to a "live virus."

"By definition if you bought something and it's now worth a great deal less, you made a mistake," Zell told Bloomberg TV Wednesday. "And I'm more than willing to say that I made a mistake. I was too optimistic in terms of the newspaper's ability to preserve its position."

Zell, a real estate billionaire, purchased the Tribune Company in a leveraged $8.2 billion transaction in December 2007. The company filed for bankruptcy in December 2008.

When asked about the possibility of a merger, Zell said he doubted anyone would be interested in partnering with a newspaper company.

"That's like asking someone in another business if they want to get vaccinated with a live virus," he said. "There's not a long list of people who want to buy newspaper companies today, and for sure it's not likely to be the case until we reach some kind of a new bottom as to what the newspaper's role is going to be in our society going forward."

Compiled by Danny Shea

Comments

[jmundstuk]

Uch. Gordon Gecko.

[NationalTreasure]

that's a pretty good tax write off

[jnratliff]

Why would anyone call the things we have today news papers?
They give no news. That is the problem. They turned them into propaganda outlets. Wholesale liars outlets. No reporting, no honesty, no integrity. If they had told the truth to the people we would not be in the mess we are in today, because bush/chenny would have never been appointed, republicans are to blame for all of todays problems!

[PlayTOE]

Sam Zell admitted today that his 2007 purchase of the Tribune Company was a "mistake"

Thing is, he made money on the deal, lots. Everybody else lost, especially the paper's employees.

His only mistake so far was bringing this to the attention of people who understand how these sorts of scams are pulled off.

[47th]

No sympathy for Zell.

[MovingtoNorway]

Dante has a special level waiting for him. What an entirely unattractive subhuman

[BluebirdofUnhappiness]

Took the Trib from bad to worse. These days I'd almost rather read USA Today if it wasn't for the local news.

[Richard22]

Interesting note:

A novel about an arrogant billionaire buying a newspaper company is now a semi-finalist in the amazon breakthrough novel awards:

http://www.amazon.com/dp/B001UG3BJK

[woodstein76]

If the Chicago Tribune is a virus, owner Sam Zell exposed the venerable newspaper to that risk. No doubt about it, Yosemite Sam is the poster boy for irresponsible newspaper owners. As a fellow Huffington Post poster noted, dailies have been regarded as nearly nothing more than piggy banks.
So, many owners took them for granted, ignoring technological advances -- until it was almost too late. Those owners include founders of once great newspapers, who didn't recognize changes in journalistic tools and appetites. Some of their heirs didn't want to deal and sold out. So, billionaires with no news judgment gobbled them up.
And offering news wasn't there intent. Fashioning glorified newsletters is the goal.

[lst440]

If newspapers go away, then where will HuffPo get their stories from?

Well, this story was taken from Bloomberg TV so I guess that's the answer--cable news!

[jnratliff]

1st440
I guess you missed the fact that Huff is doing some of it's own reporting and if the news papers all close it won't be much of a loss. They all failed in 2003 and it just gets worse now with fox and the rewritting of history.
Good riddance!

[InofTouch]

not really...currently alof of the posting are from other news sites but newspapers do the same so it not really shocking or contervisal

[BluebirdofUnhappiness]

Define some. Doubt they'll have any reporters based in Chicago, or Denver, or wherever, let alone a few dozen.

[MJinCanada]

There seems to be a concept among some newspaper owners that what they are selling is advertising space, or controversy and scandal or just "papers".

Newspapers have the luxury of space and time to give real news proper attention -- to actually do research and interviews and get all the facts instead of publishing the latest idiotic sound bite. If this is where media owners and management have been making cuts, it's no wonder they are failing.

The chain that owns our local paper here in Canada is now failing, because they've been pushing a homogenous editorial viewpoint and cutting back on real journalism. There's not much demand for fish wrap these days.

[planetjeffy]

Two problems here -
Newspapers are finished anyway. Printing and deliver costs have soared, while subscriptions have dropped. The recession, websites like HP and Craigslist have sucked the life out of printed media.

Zell took these limping dinosaurs and loaded them up with debt, hoping to ride a strong economy into profitability. He bought the house at the top of the market as it was crashing. oops.

Had Zell and anyone who owns a major newspaper known how to leverage the power of local papers to build a web community, social media and all - they and us would be the big winner. Hope it happens before papers are all gone.

[Emlyn]

When Zell bought the Tribune, I thought, now what is going to happen? Local money wanted to buy the LATIMES but the Tibune refused to do it. I still don't like te fact that the "foregin" newspaper owns the LATIMES. When I was a child here in California, anybody who wasn't born in California was a foreigner.

[larry278]

Mr Zell is not Rupert Murdoch. Mr Zell owes leveraged loans. Anybody who can't or doesn't pay leveraged loans on time & in full experiences damages. Mr Zell's credit rating was in the toilet & Sam just discovered that the toilet has been flushed. Mr Zell's credit rating is floating down the Chicago River. Chicago does a great job of purifying its sewage before releasing it into the Chicago River.
Sam Zell doesn't have street cred. As for a credit rating, how do you say that Sam Zell has a negative credit rating? Do we call Sam a problem borrower, a poor risk or can we say that Sam is now a deadbeat?
Sam is right; he made a mistake when he bought the Trib.
The CHICAGO DEFENDER may become a general interest paper since the SUN-TIMES & Trib will fold soon. Maybe Ms Huntington will make the HP's "Chicago" page into print media when the S-T & Trib fold.

[Mahi Joe]

Boycott shopping at Old Orchard shopping center. Same stores there can be found at other locations. Don't give another penny to Zell.

[Lachlan Prescott]

I'm so surprised that anyone could still think that newspaper company can actually thrive these day and age.

[Lemeritus]

Why?

[Mahi Joe]

Newspapers are thriving in Europe but just the opposite in the US. Now why is that? Maybe because we have some billionaire in real estate who doesn't know the first thing about running a newspaper? OK Zellie, we agree you made a mistake, now apologize to all those people face to face who you had to let go because you made a teeny mistake. Afterall it's not your livlihood that is being destroyed. Why should you care? You have your money right? Just think Zellie, you will go down in history, as the incompetent rich boy who brought down the Tribune. Nice going Zellie.

[MJinCanada]

Very true. The newspapers in Canada that are in trouble are the ones with a social/political agenda out of step with the subscribers they need.

News tip of the day: The product that newspapers sell is NEWS -- real, carefully and accurately reported news, hold the political slants, and serve it up with side helpings of community information seasoned with a bit of local boosterism.

[Freenation]

Print media in US is failing as no one wants to pay for editorials which are penned by biased and agenda driven authors...

[exile]

whats 8.2 billion when you be a real estate billionaire.

[Plus15]

Sam Zell On Tribune Purchase: "I Made A Mistake" - I'd have to agree with you. That sure was remarkably stupid and now we watch you compound your stupidity by the day. You sure ain't no William R. Hearst, Citizen Zell nor it now seems much of a sharp imaginative businessman.

[MovingtoNorway]

Sam Zell is a mistake