Now Private, Zell-Run Tribune Nominates New Board

Sam Zell signaled he will ride herd on Tribune Co. as the troubled Chicago media giant officially went private Thursday, Editor & Publisher reported yesterday.

Zell upped his personal investment in the $8.5 billion deal to $315 million from an initial investment of $250 million. And Zell is seating himself in the executive suite, somewhat surprisingly taking both the CEO position as well as becoming Tribune's chairman.

Among the new directors of the privatized Tribune will be Brian L. Greenspun, 61, chairman and CEO of The Greenspun Corp., and president and editor of the Las Vegas Sun. Tribune said the “Greenspun family has made a significant investment” in Tribune.

“We have a tremendous opportunity to take the great brands of Tribune Company, and the enormous talent within the company, to a new level,” Zell said in a statement. “Tribune, along with the newspaper industry, has been mired in its monopolistic origins, and we intend to create a fresh, entrepreneurial culture that is fast and nimble, and which rewards innovation. Our goal is to provide a sustainable, relevant product for our customers and communities.”

Tribune, which ceased trading at 4 p.m. yesterday, will cash out all remaining shares at $34 per share to complete the deal, under which formal ownership of the company will shift to an employee stock ownership plan.

Joining Zell in Tribune Tower's executive suite will be two longtime associates, Randy Michaels, who becomes executive vice president and CEO of Interactive and Broadcasting, and Gerald A. Spector who will be executive vice president and chief administrative officer.

• Michaels, 55, was formerly CEO of Local TV LLC, a company that acquired television stations formerly owned by New York Times Company. In his 37 years in radio and broadcast, he was president and CEO of Jacor, which merged with Clear Channel Communications in 1999.

• Spector, 61, was executive vice president and COO of Zell's real estate operation, Equity Residential. He has spent 35 years within Zell's organization.

Trading on Tribune will cease with the 4 p.m. close of the market Thursday.

Tribune's board was to meet yesterday to approve nominees for the board of directors that, in addition to Greenspun are:

• Jeffrey S. Berg, 60, chairman and CEO International Creative Management;
  

• William C. Pate, 44, chief investment officer of Equity Group Investments.;
  

• Maggie Wilderotter, 52, chairman and CEO of Citizens Communications, a Stamford, Conn.-based provider of phone, Internet, and TV through access lines in parts of 23 states;