Real Estate Magnate Bids For Trib Co.*

As Los Angeles residents hunkered down in their living rooms Sunday evening to watch the Academy Awards, The New York Times was busy breaking a story for Monday's edition that could greatly impact LA's primary news source — the Los Angeles Times — and, by association, the city as well.

According to the NYT story, Chicago real estate magnate Samuel Zell has made an offer for Tribune Co., which, of course, owns the LA Times. The bid, according to the NYT, "all but eliminates other offers," including those from LA billionaires Ron Burkle and Eli Broad.

Here's an excerpt:

Mr. Zell, 66, has never owned a major media property, but gained the nickname the “Grave Dancer” for his ability to spot and exploit undervalued properties in the real estate business.

His proposal would involve buying the entire company with the participation of an employee stock ownership plan, these people said. Although the deal would be highly leveraged, the employee stock plans have many tax advantages, including the ability to write off interest on debt.

More here.

There's certain to be plenty of people weighing in on this Monday.

*Zell recently sold his office development company for $39 billion, the amount of his bid was not mentioned by NYT.— TJ Sullivan in LA