The largest newspaper publisher in the U.S. has placed a preliminary bid for all of Tribune Co., which could face prohibitively high tax bills if it sells pieces of itself separately, according to the Wall Street Journal.
Gannett Co. became the first newspaper publisher to express serious interest in Tribune last week, according to a story in the Wall Street Journal.
After placing a preliminary bid for the entire company, Gannett executives met with Tribune leaders in Chicago. Previously, all overtures had come from wealthy individuals and private equity companies.
Although Tribune has said it would entertain selling the company in parts rather than as a whole, it could face prohibitively high tax liability if it sells assets individually, the story, by Sarah Ellison and Dennis K. Berman, said. Buyers could also run up against FCC rules limiting media concentration.
Tribune has reached out to several media companies in addition to Gannett, including Hearst-Argyle, Dean Singleton’s MediaNews Group Inc. and News Corp. The latter is interested in Newsday New York, according to the story.
To read the full story, WSJ Online subscribers can click here.