Geffen's $140m Pollock sale ups LA Times speculation

by Staff, Brand Republic 03-Nov-06, 12:00

NEW YORK - Entertainment mogul David Geffen's sale of a Jackson Pollock painting for $140m (£73.4m) has intensified speculation that he plans to buy the Los Angeles Times newspaper.

The LA Times is owned by Tribune, which is going through a tough period and has demanded cost-cutting measures at the newspaper.

Staff at the paper have resisted the threat of editorial cuts, and it is understood that Geffen, along with two other wealthy Los Angelinos, are interested in buying the newspaper and bringing it under local ownership, even if it means lower profit margins.

Reports say that Geffen, founder of Geffen Records and co-founder of the Dreamworks film studio, is prepared to pay up to $2bn in cash for the newspaper. Other businessmen to register an interest in buying the LA Times are Eli Broad and Ron Burkle, who made their fortunes in real estate and supermarkets respectively.

Tribune owns 11 daily newspapers, including the Chicago Tribune and Newsday in New York, as well as 25 television stations and the baseball team the Chicago Cubs.

The company has been considering aucitoning itself, but reports say that disappointingly low offers are bringing about a reappraisal, which could see the company broken up and sold off piecemeal.

While there is a feeling that the internet age and the growth of free newspapers could bring about an end to robust newspapers with in-depth, investigative journalism, the move to buy the LA Times is not an isolated incident.

On the east coast of the US, Jack Welch, the famous former CEO of General Electric, is reported to be discussing plans with partners to launch a bid for the Boston Globe. However, its owner, The New York Times Company, has said the paper is not for sale.

Robert Embry, president of the Abell Foundation in Baltimore has made several efforts to buy The Baltimore Sun, while David Chase has shown interest in the Hartford Courant. All three of these papers are owned by the Tribune Company.

Brian Tierney, a public relations and advertising executive, acquired The Philadelphia Inquirer and Daily News from Knight Ridder.

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