The Tribune Co. filed for bankruptcy on Monday, making it the first major company in its industry to do so since Internet based news sharing widely increased in popularity, as reported by the Associated Press (AP). The Tribune Co. owns The Chicago Tribune, Los Angeles Times, and other daily news publications.
As quoted of analyst Ken Doctor in the AP report “Tribune’s debt was so outsized and so disproportional to its cash flow compared to these other companies that it can be the sore thumb sticking out rather than an example of the industry.”
The media giant is reportedly in debt for $13 billion, and filing for Chapter 11 could buy them time to regroup to regain financial stability. Tribune Co. owns several news publications, TV stations, cable channels, and the Chicago Cubs baseball team.
The troubling economy, Internet competition, and a complex deal made by realtor Sam Zell, who took over the company last year, have all been named major contributors to Tribune Co.’s financial issues.