Tribune says sale of Cubs, Wrigley, to close in first half of '08
Media conglomerate Tribune Co. said Wednesday it anticipates closing on the sale of the Chicago Cubs baseball team as well as its stake in Comcast SportsNet Chicago during the first half of next year.
The Cubs sale was a condition that needed to be met in order for Tribune to be taken private in an $8.2 billion buyout led by real estate magnate Sam Zell.
Tribune said it also expects to complete the sale of the Cubs' Wrigley Field and related property during the same period.
Tribune put the Cubs and Wrigley up for sale in April, with the company's 25 percent interest in Comcast SportsNet Chicago included in the package. The company has moved slowly in soliciting formal bids, but among the leading potential buyers is a group of investors headed by John Canning, chairman of private equity firm Madison Dearborn Partners LLC and a longtime friend and business partner of baseball commissioner Bud Selig.
Analysts have said the Cubs could fetch as much as $1 billion if packaged with Wrigley.
Tribune does not have the final say on who will become the Cubs' next owner because Major League Baseball team owners must sign off on the deal.
Tribune said it plans to use funds from the sale to help repay debt.
The media company also maintained its previously announced forecast for its buyout to be completed prior to the end of fiscal 2007. It made the remarks in a monthly update on its revenue, which dipped 3.3 percent in November as classified ad sales continued to weigh on the nation's second-largest newspaper publisher because of significant real estate declines.
Last week, Tribune said it plans to use $500 million in cash on hand to lower the amount it needs to borrow to close the buyout by year's end. The company crossed the last apparent obstacle toward completing the deal a week earlier when the Federal Communications Commission gave its approval.
Aside from the Cubs, Tribune's other properties include the Chicago Tribune, the Los Angeles Times, seven other daily newspapers and 23 television stations.
Tribune shares rose 25 cents to $31.79 in morning trading.