Tribune Publishing executives in Chicago have rebuffed a rumor, started by media mogul Rupert Murdoch, that the company is on the verge of a sale:
Over the Thanksgiving Weekend a rumor was reported in social media and the press regarding a potential purchase of Tribune Publishing Company. While our policy is not to comment on rumors, given the source of this speculation and the fact that it has received considerable public attention, the Company believes a statement to employees is warranted.
As our Board of Directors noted earlier this fall and as we articulated in our November earnings call, Tribune Publishing remains committed to its strategy and transformation plan and is not engaged in discussions or a process to sell the Company. As we finish the important fourth quarter, we appreciate the continued hard work and commitment of our employees.
The announcement comes after rumination from media watchers kicked off by a tweet from Murdoch indicating he’d received a “strong word” that Tribune Publishing was to be sold off to a large Wall Street firm. Shortly after, media analyst Ken Doctor reported that Apollo Global Management made sales overtures to Tribune Publishing “about a month ago.” Tribune Publishing was “non-responsive” to that offer, according to Doctor.
Under Murdoch’s now-disputed scenario, the Tribune-owned Los Angeles Times would be sold off to billionaire philanthropist Eli Broad, who previously urged local ownership of the paper. The tug-of-war over the Los Angeles Times, combined with the Tribune Publishing orchestrated ouster of former publisher Austin Beutner earlier this year threw into sharp relief longstanding conflicts between Chicago and Los Angeles over how the company’s California properties should be run.
Tribune Publishing shares were up 12 percent in the first hour of trading Monday morning, an indicator that investors are giving Murdoch’s rumor some credence.