Tribune Co. announced plans Wednesday to spin off its beleaguered newspaper unit into a separate company, freeing the media conglomerate to focus on its more promising television and Internet properties.
The new entity, to be called Tribune Publishing Co., would include the Los Angeles Times, the Chicago Tribune and six other daily papers. All other assets, including the company’s real estate holdings and stakes in several Internet sites, would remain part of Tribune Co.
The spinoff would be tax-free to Tribune shareholders and could take as long as a year to complete.
Other media companies, notably Rupert Murdoch’s News Corp., have spun off their publishing units. The goal is to boost the stock market value of the broadcast properties by unshackling them from the newspapers, whose revenue has been declining sharply.
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