Publications
Publications
- May 2008
- HBS Case Collection
Tribune Company, 2007 (CW)
By: Timothy A. Luehrman
Abstract
This case describes the proposed acquisition of Tribune Company by Sam Zell in 2007. Tribune Company is one of the largest newspapers and broadcasting companies in the United States. Zell's proposed acquisition is unusual in several respects. It is two-tiered, employs an ESOP as the acquisition vehicle, involves a high degree of leverage as well as significant asset sales, and Zell himself will own almost no common stock in the post-deal Tribune. The case is set in late October 2007, at which point the first stage of the acquisition has been completed, but the second stage has not. Recent deterioration in both Tribune's operating results and credit market conditions make it unclear whether the transaction can be closed as scheduled in 2007, or indeed at all.
Keywords
Acquisition; Credit; Employee Stock Ownership Plan; Employees; Markets; Market Transactions; Negotiation Deal; Business and Shareholder Relations; Sales; Perspective; Journalism and News Industry; United States
Citation
Luehrman, Timothy A. "Tribune Company, 2007 (CW)." Harvard Business School Spreadsheet Supplement 208-723, May 2008.