Tuesday, December 9, 2008

Media, Blogs Are All Atwitter About Tribune,
Sam Zell and Gov. Blagojevich

From Romenesko:

Editorial writer targeted by Blagojevich wasn't pressured by Tribune bosses
Reflections of a Newsosaur
McCormick
Chicago Tribune editorial writer John McCormick (left) says no one at Tribune tried to influence the tough stance taken by him and his editorial board colleagues against Gov. Rod Blagojevich. "The feds say somebody wielding power and money tried to muscle Tribune Co. at a difficult time for our industry – and didn't get away with it," McCormick e-mails Alan Mutter. "The Tribune Co. was the object of a huge extortion attempt and didn't budge." || Earlier: Blagojevich singled out editorial writer McCormick.
> Who knew editorial writers were so important?
> Blagojevich bust makes Zell look a bit better today
> Read the editorials that angered Blagojevich

Chicago Tribune says it held some stories at U.S. Attorney's request
WGNTV.com
Kern
Tribune editor Gerould Kern (left) says in a statement: "On occasion, prosecutors asked us to delay publication of stories [about allegations of misconduct involving Illinois Gov. Rod Blagojevich], asserting that disclosure would jeopardize the criminal investigation. In isolated instances, we granted the requests, but other requests were refused." || Chicago Tribune: U.S. Attorney Patrick Fitzgerald thanked the Tribune Tuesday for not reporting some aspects of his probe.
> Sun-Times' Sneed outed as Blago's favorite patsy

Blagojevich was told a Tribune exec would be "going after" the editorial section
Chicago Sun-Times | NYTimes.com
In a Nov. 11 intercepted call, Illinois Gov. Rod Blagojevich was told by his chief of staff that a "Tribune Financial Advisor" talked to Sam Zell and Zell "got the message [about the editorial board] and is very sensitive to the issue." The chief of staff told the governor that according to Tribune Financial Advisor, there would be "certain corporate reorganizations and budget cuts coming and, reading between the lines, he's going after that section." Blagojevich allegedly responded: "Oh. That's fantastic." || Floyd Norris comments on this.

Littwin: "Every self-respecting newspaper person that I know would enjoy seeing Zell fall, but..."
Rocky Mountain News
"We don't have that luxury anymore," writes Mike Littwin, whose newspaper is on the block. "The problem is, as much as I'd like to gloat [about Sam Zell's problems], I can't find it in me. Apparently it's hard to gloat and work on your resume at the same time. I hate that. But I hate even more that there is so much wrong with today's financial model for newspapers -- this was where Zell was absolutely right -- and that no one seems to have any idea what to do about it."
> Tribune's woes don't stop Abrams from cranking out another "think piece"

Analyst: Zell mortgaged the future of Tribune employees to pursue "a childhood fantasy"
NYTimes.com DealBook
SamZell
"The employees were put in a very bad situation," says analyst Jack Newman. He noted long before Monday's bankruptcy filing: "If there is a problem with the company, most of the risk is on the employees, as Sam Zell will not own Tribune shares. The cash will come from the sweat equity of the employees of Tribune."
> LATer: "No love lost between employees here and Zell"
> Bankruptcy looks like just another phase in Zell's strategy
> Filing won't make things much worse -- or improve things
> Ebert: At least Lord Black was a newspaperman with taste
> Tribune's letter to advertisers | Tribune story | LAT story
> Odds stacked against Tribune from the moment Zell bought it

Sphere: Related Content

Bloomberg: Tribune Co. Employees Are Biggest Losers in Bankruptcy; Investment May Be Worthless

Watch more AOL Personal Finance videos on AOL Video


> BusinessWeek: Tribune Bankruptcy Snares Employees
> Can you lose your 401 (k) if your company goes bankrupt?
> Payments to LAT freelancers stopped Sphere: Related Content

Zell More Dewey Than Truman

Zell cartoon
News item: Illinois Gov. Rod Blagojevich, arrested on suspicion of corruption, believed that Sam Zell planned to use "certain corporate reorganizations and budget cuts" to get the Chicago Tribune editorial board, as the governor asked. Sun-Times

Blog item: Lee Abrams tells Tribune papers and TV stations to own the recession: "Instead of reporting to doom and gloom, AGGRESSIVELY OWN it, via ongoing series'. New one weekly...it's probably going to be a crisis for a looooong time, so NOW is the time to establish ownership." Blogger reaction: "I find this terribly ironic. Who needs a primer on how to survive the recession more than the bankrupt Tribune?" The Daily Pulp

Satire item: "Tribune bankruptcy brings out Zell’s humanitarian side" Not the LA Times

Cartoon take off on Dewey Beats Truman by John Sherffius in the Boulder Camera, courtesy of the artist.

Sphere: Related Content

Governor Held in Shakedown of Tribune, Cubs



Charged With Conspiracy to Sell
Obama's Vacant Senate Seat


Illinois Gov. Rod Blagojevich was arrested on Tuesday on charges he brazenly conspired to sell or trade the U.S. Senate seat left vacant by President-elect Barack Obama to the highest bidder in what a federal prosecutor called a "corruption crime spree."

U.S. Attorney Patrick Fitzgerald told a news conference prosecutors make "no allegations" Obama was aware of any alleged scheming.

Blagojevich, right, also was charged with illegally threatening to withhold state assistance to Tribune Co., the owner of the Chicago Tribune, in the sale of Wrigley Field, according to a federal criminal complaint. In return for state assistance, Blagojevich allegedly wanted members of the paper's editorial board who had been critical of him fired. [Click for MORE]

> Governor accused of seeking revenge against Tribune for critical editorials

> Read the complaint against Gov. Blagojevich HERE.

> Blagojevich free on $4,500 bond


Sphere: Related Content

Monday, December 8, 2008

The Worst CEO

From the Washington Post

The Tribune internal Q&A website on today’s bankruptcy filing states that "all ongoing severance payments have been discontinued.” So if you’re one of the large number of reporters, editors and other staffers at the L.A. Times, the Chicago Trib or other papers who got sacked and didn’t get your severance in one lump sum, you have a real problem. A sit-down strike, such as that currently being waged in that Chicago door and window factory, seems a fitting and proper response, though you’ll need help from those of your former colleagues still employed to get back into the buildings. [Click for MORE] Sphere: Related Content

How Networks Reported Tribune Co. Bankruptcy

CBS

Watch CBS Videos Online

MSNBC


NBC
Sphere: Related Content

TRIBUNE CO. FILES FOR BANKRUPTCY


Tribune Co. filed for bankruptcy protection from its creditors Monday amid declines in advertising revenue.

The company, which operates TV stations and newspapers including the Chicago Tribune and the Los Angeles Times, had $7.6 billion of assets and debt of $13 billion, according to a Chapter 11 petition filed today in U.S. Bankruptcy Court in Wilmington, Del.

The filing excludes the Cubs franchise, according to Sam Zell, Tribune's CEO.

“It has been, to say the least, the perfect storm,” Mr. Zell said in a note to employees just after the filing. “A precipitous decline in revenue and a tough economy have coupled with a credit crisis, making it extremely difficult to support our debt.” [Click for MORE]


Click image for Video
> Why Tribune filed
> Court filing [PDF]
> Tribune statement
> Trib: Tribune Co. files for bankruptcy protection
> LA Times: Tribune Co. files for Chapter 11 bankruptcy protection
> Cubs say Trib's BK foray won’t delay sale — but judge could play umpire
> Zell tells employees: "I remain committed to the company, to you and to our lenders"
> Former Times Mirror execs' golden parachutes disclosed in filing
> Tribune Files for Chapter 11; Who’s on the Hook?
> Remember Mark Willes?
> But what about my stock?
> Zell explains filing
> MLB: Cubs are not part of the filing, company says in statement
> The L.A. Times's Human Wrecking Ball
> Tribune Bankruptcy: Print It
> What Tribune's bankruptcy filing could mean for California
> Zell, Who Led $8 Billion Effort to Take Media Giant Private a Year Ago, Says He Saw No Other Way Out
>
Deal Journal: Was the Buyout Ever a Good Idea?
> Video: What Went Wrong for Tribune Co.


> Tribune Bankruptcy: Timeline of Company's Troubles Sphere: Related Content