Tribune Publishing says it is ‘deeply committed’ to the L.A. Times
A large shareholder of L.A. Times owner Tribune Publishing has questioned the company’s decision to turn down a buyout offer from Gannett and sell millions of new shares to billionaire Patrick Soon-Shiong.
After calls to restore the Los Angeles Times to local ownership, the board of directors of Tribune Publishing Co. has reaffirmed that it intends to keep The Times and its sister paper, the San Diego Union-Tribune.
“Our California News Group, which includes the Los Angeles Times and the San Diego Union-Tribune, is a cornerstone of our company’s portfolio and a key component to our success in the future,” the board said in a statement released Thursday.
It also reiterated its support for Tribune Publishing Chief Executive Jack Griffin and for Timothy E. Ryan, who was appointed publisher of the two newspapers Sept. 8.
Ryan replaced Austin Beutner, who was fired, in part because of a clash over whether the California papers should remain within the newspaper chain.
The board said it remains “deeply committed” to the newspapers and the Southern California community.
The Tribune Publishing statement came after Beutner’s firing led some L.A. civic leaders to express concerns about the future of the paper. On Tuesday, the Los Angeles County Board of Supervisors called on Chicago-based Tribune Publishing to restore local leadership at The Times, echoing a letter sent to the board by a group of local business and civic leaders.
Griffin defended his decision to fire Beutner in an interview with the Chicago Tribune on Friday, saying the former Wall Street investment banker wasn’t on the same page as the rest of the company when it came to keeping Tribune Publishing profitable amid industry turmoil.
Griffin declined to cite specific disagreements, but sources said the tension between the two escalated when L.A. billionaire Eli Broad made an overture in recent weeks to buy The Times and the Union-Tribune.
Under such a scenario, Beutner would probably have continued to lead the two papers.
Griffin said no formal offer had been made to buy the California News Group. He said Ryan would drive the company’s initiatives “to a much more significant degree” than his predecessor.
Beutner declined to comment.
Also on Friday, Tribune Publishing lowered its financial forecast for the year. It now expects 2015 revenue of $1.645 billion to $1.675 billion, down from its previous estimate of $1.67 billion to $1.7 billion. It also lowered expectations for adjusted earnings by about 10%.
The company blamed its revised financial guidance on lower revenue estimates and delays in cost-cutting
efforts in Southern California.
