Tribune Hires Bankers to Explore Sale of Unit

Tribune Co., which is bulking up its newspaper business with a planned $6.8-billion purchase of Los Angeles-based Times Mirror Co., said it hired Salomon Smith Barney Inc. to explore the sale of its educational publishing unit. Tribune Education is the largest U.S. publisher of supplemental school materials such as workbooks. The business could fetch as much as $800 million, Prudential Securities analyst James Marsh said. Tribune said the business doesn’t fit with its main newspaper and television operations. The Chicago-based company formed Tribune Education in 1994 to create a new source of revenue beyond advertising. The unit generated about $339.6 million in revenue last year, or about 11% of the company’s total. It had an operating loss in the fourth quarter, partly due to a drop in sales and higher marketing costs. Tribune shares rose $1.31 to close at $37.88 on the NYSE. The stock has risen about 2% since Tribune last month announced plans to buy Times Mirror, parent of the Los Angeles Times. Times Mirror shares rose $1.25 to close at $94.19, also on the NYSE.