Tribune Media may sell assets, businesses

Owner of cable’s WGN reports Q4 loss of $381 million

- Hadley Malcolm and Roger Yu

Tribune Media, which owns and operates 42 TV stations, said Monday it’s exploring “strategic and financial” options, including possibly selling businesses and assets, as losses mount and advertisin­g sales tumble.

Based in Chicago, Tribune Media, whose assets include cable network WGN America, reported that its fourth-quarter net loss totaled $381 million, swinging from $314.7 million in profit a year ago.

“The strategic and financial alternativ­es under considerat­ion include, but are not limited to, the sale or separation of select lines of business or assets, strategic partnershi­ps, programmin­g alliances and return of capital initiative­s,” Tribune Media said.

Shares of Tribune Media rose 8.9% to end Monday at $35.90.

Tribune Media’s plans to overhaul its business come less than two years after it spun off its publishing business — now called Tribune Publishing — in August 2014 as a separate, publicly traded entity in order to focus on its broadcasti­ng and digital properties and shield them from declining print revenue.

Like other broadcaste­rs, Tribune Media has had to contend with online streaming, changing consumer behavior and the volatile nature of TV advertisin­g. Much of its revenue drop in the fourth quarter — down 1% to $547.6 million — can be attributed to lower advertisin­g sales.

Tribune Media previously announced it is selling Tribune Tower, its iconic headquarte­rs building in Chicago, and the north block of the Los Angeles Times Square building in Los Angeles. It’s now looking to unload more real estate, it said.

“We believe that the value of the portfolio of businesses of Tribune Media is not fully reflected in the stock price,” board chairman Bruce Karsh said in a company statement.

Tribune Media said its board approved a plan to spend up to $400 million to buy back its Class A common stock. Meanwhile, Tribune also entered into a new two-year employment contract with CEO Peter Liguori.

For the full year 2015, Tribune Media’s revenue rose 3% to $2.01 billion. Net loss for the year totaled $319.9 million vs. $476.7 million of profit in 2014.

 ?? SCOTT OLSON, GETTY IMAGES ?? Much of Tribune Media’s revenue drop can be attributed to lower advertisin­g sales.
SCOTT OLSON, GETTY IMAGES Much of Tribune Media’s revenue drop can be attributed to lower advertisin­g sales.

Newspapers in English

Newspapers from United States