Tribune to Sell Digital City Stake to AOL

Tribune Co., the third-largest U.S. newspaper company and parent of the Los Angeles Times, agreed to sell its 20% stake in Digital City Inc. to America Online Inc. and will provide local news and sports content to the regional Web site. Terms weren’t disclosed. The sale means Digital City, founded in 1996 by the two companies, will be completely controlled by Dulles, Va.-based America Online, the largest Internet service provider. Tribune said it decided to sell the stake after America Online determined it wouldn’t spin off the unit. The content agreement is part of a larger push by the Chicago-based company to bring the local news from its print and broadcast properties onto the Internet, thereby preserving the brand name of its newspapers and TV stations. Digital City provides entertainment guides and other information for 200 U.S. cities, including areas covered by Tribune’s newspapers, including The Times, New York Newsday, Chicago Tribune and Orlando Sentinel. It also will feature Tribune’s BlackVoices.com, geared toward black audiences. Shares of Tribune fell 44 cents to close at $35, and AOL rose $1.13 to close at $52.88, both on the New York Stock Exchange.

*

Guide to Our Staff: Need to reach Business section reporters or editors? A guide to the section’s staff can be found at: https://www.latimes.com/bizstaff.